NFL free agency is just around the corner, with the legal tampering period already underway. One way to keep a prized player off the open market is to sign them to a long-term contract extension. If reaching an agreement isn't so easy, however, teams can opt to use the franchise tag in order to keep the player.
We're going to take a deep dive into the franchise tag and explain what it means, and some of the nuances surrounding it.
How does the Franchise Tag work?
The franchise tag in the NFL exists in order for teams to get an additional year of service time from a player on the roster. Once a player is tagged, they will remain on the roster for one more season at a set price. Once the franchise tag is signed, that player is locked in with a fully guaranteed one-year deal. The player and the team will have until a set date in July to reach an agreement on a long-term deal. If they can't come to an agreement, they won't be able to resume contract negotiations until the following offseason.
For example, the Kansas City Chiefs placed the franchise tag on guard Trey Smith, preventing him from hitting free agency. His deal is a one-year contract worth $23.4 million, all of which is fully guaranteed. The only way the franchise tag could be rescinded is if the Chiefs and Smith were able to agree to a long-term extension.
It's not a requirement to use the franchise tag each year, and many teams opt against using it. In 2025, only two players received the franchise tag; Smith and Cincinnati Bengals wide receiver Tee Higgins.
How Many Times Can a Player Be Franchise Tagged?
Players can be franchise tagged a total of three times, but the cost of tagging the same player will increase each time. The second franchise tag used on a player will carry 120% of the value of the first tag. An example of this can be seen with Higgins. The Bengals used the franchise tag on him last year at a value of $21.8 million, and again in 2025 at a value of $26.2 million.
Higgins is eligible to be tagged for a third time, though no player has ever been tagged three times due to the rising costs that come with it. If Higgins were to land with a new team, he'd still only be eliglble for one more franchise tag, due to the fact that Cincinnati tagged him twice.
What Is the Difference Between an Exclusive and Non-Exclusive Franchise Tag?
The non-exclusive franchise tag is the more commonly seen tag in the NFL. Under a non-exclusive franchise tag, players retain the right to negotiate a contract with another team. If an offer from another team is made, the player's original team has the right to refuse to match the offer. If the franchised player's team refuses to match the offer sheet, the team that offered him the new deal will be required to send two first-round picks in exchange for signing him.
An exclusive franchise tag prevents a player from negotiating with other teams, but typically comes at a higher cost. The price of the exclusive franchise tag is calculated by taking the average of the top five cap numbers at that position at the end of free agency. If that value is less than 120% of the player's previous salary, the player will earn 120% of their previous salary instead. The value of the non-exclusive tag takes the average of the top five cap numbers over the last five years, or 120% of a player's previous salary.
When Must a Team Make a Decision on Using the Franchise Tag?
The deadline for using a franchise tag on a player was March 4. The length of the franchise tag window runs for 15 days. After the deadline, teams must work out a long-term deal with the player, or else they will be eligible to hit free agency.
What is the Transition Tag?
Similar to a franchise tag, the transition tag is a one-year, fully guaranteed contract but comes at a lower cost than the franchise tag. The value varies year over year and is partially based on the current NFL salary cap. The price is determined by the NFL's CBA and also varies depending upon the player's position. A player given the transition tag will be eligible to negotiate with other teams, but the team that tagged them will maintain the right of first refusal. If they don't match an incoming offer, the player can leave without giving their team any compensation, which is a key difference between the non-exclusive tag and the transition tag.
Are Players Required to Accept the Franchise Tag?
Players can not refuse to accept the franchise tag, though there isn't anything preventing them from trying to force a trade after being tagged. Still, once a team elects to place the franchise tag on a player, that player won't be able to reject it and elect for free agency.
For example, if Higgins wanted to avoid being tagged for a second year in a row, he'd have to force a trade out of Cincinnati or agree to a long-term extension with the team. One prime example of a player refusing to suit up after being tagged is Le'Veon Bell, who held out for the entire 2018 season after the Pittsburgh Steelers tagged him for the second consecutive year. The following offseason, Bell signed a multi-year contract with the New York Jets.
So, while refusing the franchise tag isn't technically an option, there are certainly ways to skirt the tag.
More NFL on Sports Illustrated
This article was originally published on www.si.com as Explaining the NFL's Franchise Tag & How it Works.
