As the NFL offseason unfolds, teams strategically navigate through a complex marketplace to retain and manage talent. One cornerstone of this process is the franchise tag, a mechanism that can retain top players while shaping a team's financial landscape.
The Mechanics of Franchise Tags
Franchise tags are pivotal tools used by franchises to secure key players. With two varieties—exclusive and non-exclusive—these tags determine how a player can interact with the broader market. The non-exclusive tag allows the player to negotiate offers with other teams, which the original team can choose to match. This tag is calculated using either 120% of the player's previous pay or the five highest salaries at the player's position, opting for the greater sum.
In contrast, the exclusive tag restricts a player from speaking to rival teams, offering the higher of the calculations. The decision between these tags can drastically affect a team's cap management and a player's market prospects.
Additionally, there is the transition tag, which calculates a player's worth based on the average of the top ten salaries for their position, again including the 120% provision. However, unlike the franchise tags, it does not secure compensation if another team secures the player's services.
Impact and Trends
The upcoming 2025 offseason sees NFL teams working within a 15-day window from February 18 to March 4 to decide whether to apply these franchise tags. Historically, usage of the franchise tag is strategic. Over the past three seasons, the tag has been utilized 22 times, averaging seven applications yearly.
Success in securing long-term agreements from players tagged has been mixed. In one recent year, seven out of eight tagged players transitioned to multiyear contracts. Yet, between 2021 and 2023, fewer than half converted these temporary measures into longer-term agreements. This underscores the tag's sometimes temporary nature, often serving its original purpose as a stopgap.
"The franchise tag operated more like it was originally intended this year," an unnamed source noted, highlighting its transitional nature as a placeholder rather than a long-term solution.
Financial Dynamics
Looking ahead to 2025, the NFL salary cap is projected to range between $265 million and $275 million, a factor that will play a crucial role in how teams deploy tags. This is particularly relevant for teams like the Minnesota Vikings, who have decisions to make regarding players like Sam Darnold.
Darnold is currently on a $10 million one-year "bridge" deal with the Vikings. Should he depart, the team could free up a hefty $65 million in cap space. Yet, without tagging him, the Vikings might forgo a valuable compensatory draft pick in 2026. An insider commented, "There's a possibility that the Vikings wouldn't get a 2026 compensatory draft pick by letting Darnold walk in free agency." Such a move might make a franchise tag, or a trade, a more enticing option.
As another source suggested, "Since Darnold would clearly be the top quarterback available on the open market, using a franchise tag to trade him isn't out of the question."
Case Studies
Other players also illustrate the financial gymnastics at play with franchise tags. For instance, Chris Godwin faces an exhaustive and potentially unaffordable scenario if tagged again, a sentiment that resonates with many players in similar positions.
On the other hand, teams like the Cincinnati Bengals have recently demonstrated how to use the franchise tag effectively, placing a $21.816 million tag on Tee Higgins. Such decisions often echo throughout the league, influencing financial strategies and player negotiations.
Meanwhile, Russell Wilson's move from the Denver Broncos to the Pittsburgh Steelers signals just how fluid the league can be, even for franchise quarterbacks, as teams recalibrate to fit within salary cap confines and strategic needs.
The NFL offseason remains a chessboard where every move counts, with franchise tags acting as vital instruments in teams’ tactical arsenals. With the 2025 league year on the horizon, fans and analysts alike will undoubtedly be watching how these decisions manifest, impacting both rosters and the broader market.