Free agency in the NFL is just around the corner, but before players and teams can agree on contracts on the market, teams first have the opportunity to retain one of their soon-to-be-uncontracted players using a specific tool – the franchise tag. But what is that actually? sport.de provides information.
Every year, free agency is the part of the offseason in which players whose contracts have expired can negotiate with all teams and ultimately negotiate new contracts. But not every player without a contract becomes a free agent.
The focus here is on the so-called unrestricted free agent, i.e. one who has completed at least four “accrued seasons” in the NFL. This is counted if a player has been part of a team’s squad in at least six games of an NFL season. However, he does not necessarily have to have been in the active matchday squad. The season will also be counted if the player was on the injured reserve list for at least six games.
However, if a player spent an entire season on the Physically Unable to Perform List (PUP) or the Non-Football Injury List, the season will not be counted. The same applies if a player is on the Commissioner’s Exempt List (for disciplinary reasons) or is only part of the practice squad.
NFL: This is the franchise tag
If a player has achieved at least these four credited seasons in the NFL and his contract has expired, then he is an unrestricted free agent and is therefore entitled to come onto the market. However, NFL teams now have an option to limit or even completely prevent the entry of one of their players into the market each season. This is where the franchise tag comes into play.
The franchise tag is available in two versions. There is the “normal” franchise tag, which is also known as a non-exclusive franchise tag. And there is the exclusive franchise tag.
The non-exclusive franchise tag
Anyone who wants to keep a star player after his contract expires in the absence of an agreement on a long-term deal usually resorts to the non-exclusive franchise tag. The franchise tag, which can be awarded this year between February 20th and March 5th, is per se a one-year contract that is fully guaranteed once signed.
The non-exclusive day means that a player now has the choice of accepting it and playing for his team for another year – or can then be traded – or still negotiating with other teams and possibly signing a so-called offer sheet there . An offer sheet is a normal NFL contract that is binding upon signing. However, in such a case, the player’s previous team would have the opportunity to match the offer and thus keep the player on this path.
However, if the previous team gives up the player, it would receive two first-round picks from the player’s new team as compensation. This circumstance makes it particularly unattractive for other teams to sign a franchise player, after all, in this case you not only pay a usually high monetary price, but also in the form of draft capital.
It should also be mentioned here that the team and players can continue to sign a long-term contract even after using the franchise tag. However, this only lasts until mid-July. Afterwards it would remain a one-year contract for the respective player.
The exclusive franchise tag
If you as a team want to be absolutely sure that a specific free agent remains, there is the option of using an exclusive franchise tag. This is also a one-year contract that is worth more than the non-exclusive day. And that completely excludes contact with other teams.
Teams only rarely resort to this method.
NFL: This is transition day
A rarely used opportunity to keep an out-of-contract player with a team is transition day. It is far less restrictive than the franchise tag and also includes a lower fixed salary amount for each position.
What the transition day does is grant the team the so-called “Right of First Refusal”. This means that a player can negotiate with all teams and also sign an offer sheet. The player’s previous team then has the opportunity to match the offer and thus keep the player.
But that is the only advantage of this tag. If you reject the offer sheet, the player goes to his new team and the previous team does not receive any compensation.
Each team can only award either one franchise or one transition tag per year.
NFL: The Restricted Free Agent Tender
As already mentioned, franchise tags are a means of retaining unrestricted free agents. However, those who have not yet received four years in the NFL but are still without a contract are considered restricted free agents. These include former undrafted rookies who usually only get three-year contracts.
They can also negotiate with other teams. However, the current team has the opportunity to place such a player on a restricted free agent tender. This is also a one-year contract, with the salary depending on the type of tender. There are four different RFA Tenders:
- First Round RFA Tender
- Second Round RFA Tender
- Original Round RFA Tender
- Right of First Refusal
In this case, if there is an offer sheet and the previous team lets the player go, it would receive a first or second round pick from the new team as compensation in the case of the first three RFA tenders or one in a later round, if one player was drafted.
Here too, an offer sheet is unlikely because no team wants to give up such a high pick. Meanwhile, RFA tenders can be used by a team as often as they want per season.
NFL: Salary for franchise tag and co.
The individual methods of retaining players without a contract are always accompanied by fixed salaries for the respective one-year contracts. These are based on clear rules, which in the case of franchise and transition tags are also tied to the players’ positions. RFA tenders, on the other hand, are position-independent.
The salary for the franchise tag corresponds to the average salary of the top five cap hits at the respective position over the past five seasons.
Meanwhile, the transition tag salary is based on the top 10 cap hits of the respective position. Both are also linked to the respective salary cap and its development.
There are also certain exceptions. Since it is not uncommon for players to have a higher cap number in the previous year than the total of the franchise tag in the following year and in such a case a player should not be placed worse off in terms of salary, there is the 120 percent rule. So if the franchise tag salary was lower than the player’s previous cap number, he would receive 120 percent of his previous cap number for the franchise tag.
Chris Jones would be extremely expensive with a franchise tag
Franchise Tag: The 120 percent rule
A concrete example in 2024 would be defensive tackle Chris Jones from the Kansas City Chiefs. His contract is expiring and the salary for a defensive tackle via franchise tag is currently $20.9 million, according to Over The Cap. However, Jones’ cap number for 2023 was $26.8 million. Accordingly, the 120 percent rule applies to him, so his salary would be over $32 million for 2024. And that alone makes a franchise tag for him quite unlikely.
Those who receive the exclusive franchise tag are also viewed differently when it comes to their salary. Is it a non-exclusive day? only around the average of the top 5 cap hits at each position, a player with an exclusive franchise tag would receive the average of the top 5 actual salaries at a position. And this value is usually above the cap hits.
An important exception are cases in which players would be retained for several years in a row using a franchise tag. This lasted a maximum of three years in a row. If this happens twice in a row, a player would receive 120 percent of the previous year’s salary, and for a third year in a row even 144 percent of the previous year’s salary.
When calculating the salaries for the RFA tender, the respective figure from the previous year is adjusted to the same extent as the change in the salary cap from the previous year. So in the 2024 season this will mean an increase in salaries.
The salary cap for the 2024 season has not yet been determined, but will be announced by the NFL before the start of the new league year on March 13th. “Over The Cap” currently assumes $242 million, other media recently suggested a sum in the region of $250 million. In any case, the cap will increase significantly from the last $224.8 million.
NFL – Franchise Tag: Projected Salaries 2024
Quarterback: $36,293,000
Linebackers: $22,748,000
Defensive tackle: $20,943,000
Wide receivers: $20,672,000
Defensive end: $20,205,000
Offensive line: $19,885,000
Cornerback: $18,762,000
Safety: $16,224,000
Tight end: $12,027,000
Running Back: $11,326,000
Special Teams: $5,670,000
NFL – RFA Tender: Projected Salaries 2024
- First round: $6,464,000
- Second round: $4,633,000
- Right of First Refusal: $2,828,000
The source is “Over The Cap”.
Marcus Blumberg