NFL franchise tag explainer: What it is, how much it's worth, when teams can use it

NFL franchise tag explainer: What it is, how much it’s worth, when teams can use it

Posted by author February 14, 2025 NFL

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What is the franchise tag in the NFL?

The franchise tag is a useful tool for NFL general managers who are trying to keep a roster together by retaining an important pending free agent.

Every year, several contributing players across the league sign and play on a team’s franchise tag — the Cincinnati Bengals used their franchise tag on wide receiver Tee Higgins last year.

In the coming weeks, there will be a few other significant players signed to franchise tags to keep them tied to a roster for at least one more year.

Here’s everything to know about the NFL franchise tag:

What is the franchise tag in the NFL?

The franchise tag is a tool that each NFL general manager can use once per offseason. It is, essentially, a one-year contract that teams can use to prevent a player on an expired contract from departing in free agency.

Within the “franchise tag” umbrella, there are three kinds of tags:

Non-exclusive tag: An agreement that allows the player and his agent to negotiate contract terms with other teams. The original team can either match the best offer that player receives – should he receive any – or receive two first-round picks as compensation if he leaves. Most “franchise tags” are non-exclusive tags.
Exclusive tag: A player is not free to negotiate with any other team. He will play on his one-year deal, assuming the offer is signed.
Transition tag: Almost the same as the non-exclusive tag in that it allows the original team to match an offer. However, should the player depart, the original team receives no compensation.

Franchise tags are often used as “bridge” contracts. If a player and a team can’t reach agreement on a multi-year contract extension, the tag allows the two sides more time to negotiate. Or, if a team would like to maintain a player’s rights to secure some kind of return in a trade, the team can tag the player before recouping draft picks in a trade.

At its base level, a franchise tag is a way for a team to hold on to an important player for one more year. If a team believes it’s in a championship contention window but faces a difficult salary cap decision, the franchise tag provides a viable short-term solution.

How much is the franchise tag worth?

The value of a franchise tag is dependent on three things: the type of tag, a player’s position and the value of his previous contract. What does not change is the tag’s length. It is always a one-year contract.

For non-exclusive tags, the one-year contract is worth either the average of the top five salaries at the player’s position over the last five years or 120% of the value of his previous salary. The tag is worth whichever value is greater.

For exclusive tags, the value is either the average of the top five salaries at his position for the current year or 120% of the value of his previous salary. Once again, the tag is worth whichever value is greater.

Finally, transition tag values are locked at the average of the top 10 salaries at his position.

When can NFL teams use the franchise tag?

This year, the franchise tag window opens on Tuesday, Feb. 18 and ends at 4 p.m. ET on Tuesday, March 4.

There is one more franchise tag-related deadline.

Tuesday, July 15 (4 p.m. ET) is the deadline for all franchise-tagged players to agree to terms on a multi-year contract extension with their teams. After the deadline, players can only agree to sign a one-year deal – generally, the one tendered in the franchise tagging process. In addition, players can’t sign an extension off that one-year contract until after their team finishes the regular season.