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Franchise Tag vs. Transition Tag: NFL Offseason Terms Explained

Brian Burns - Fantasy Football Rankings, IDP Draft Sleepers, Defense (DST)

The NFL offseason can remain a very hectic time of year, even though no games are played. This time of year, it can be difficult to follow every single rumor, let alone understand what each one means. Obscure phrases are thrown around left and right, leaving fans somewhat confused, perplexed, or even completely lost.

We are here to explain two common phrases that have been very popular over the last couple of weeks and will continue to be thrown around even more often over the next few days.

What is the difference between a franchise tag and a transition tag? Which key dates are associated with these terms? Which players have been tagged or could be tagged within the next few days?

Be sure to check all of our fantasy football rankings for 2024:

 

The Purpose of a Tag

The franchise and transition tags are unique tools that allow an NFL team to maintain control of a player without negotiating a new contract. It essentially binds a player to a team using a predetermined salary without giving that player the right to refuse the tag.

NFL teams find this to be strategic for obvious reasons. Tag salaries are determined by position and remain the same for all impending free agents at that position. Teams and players always try to negotiate extensions first, but if they can't agree to terms, that team can retain him anyway by issuing a tag. Presumably, if a team tags a player, they feel as though that player is worth more than the predetermined tag value.

Of course, those predetermined values are high -- they are determined by the top salaries at that position or a percent increase over the tagged player's previous salary, whichever is higher -- and so it only makes sense (from a financial perspective) to tag a player who is one of the premier players at their position.

While teams may find it beneficial to use the tag, players often dislike it, and justifiably so. After all, they're being forced to play for a team at a predetermined price (often valued below their worth), which strips them of their leverage and negotiating power.

Tags also give players one-year contracts, which means they don't receive long-term contractual stability. Because of this distaste for the tag, players sometimes negotiate a "no-tag" clause into their contract, which forbids teams from tagging them at the expiration of their deal. Other players may threaten to hold out or demand a trade if they are given a tag rather than an extension.

 

Franchise Tag vs. Transition Tag

There are several types of tags, each with varying stipulations and restrictions. The most commonly discussed tool is the "franchise tag." However, there are actually three tags: a non-exclusive franchise tag, an exclusive franchise tag, and a transition tag.

The non-exclusive tag is the most common; it's what people are referring to when they mention the general term "franchise tag." This tag issues players a one-year contract worth the average of the top-five salaries at their position over the last five years or 120 percent of the player's previous salary, whichever is greater. The non-exclusivity comes into effect because players are allowed to negotiate with other teams after being issued this tag. However, their current team (the issuer) reserves the right to match any offer that player receives or demand two first-round picks in exchange for letting that player sign with another club.

Because of these stipulations, we usually see teams place the non-exclusive tag on players who are worth more than the monetary value of the tag but less than two first-round picks. These are both subjective decisions, but for the most part, teams are good at evaluating their own players' market values. As a result, we rarely see other teams interject and offer more money or two first-round picks for the tagged player.

The exclusive franchise tag is similar to the non-exclusive version, except it is more expensive and carries far more exclusivity, of course. Players who are issued an exclusive franchise tag may not negotiate with other teams. Instead, they are bound to their current team on a one-year deal worth the average of the top-five salaries at their position for the current year or 120 percent of their previous salary, whichever is greater. You'll notice that this tag uses the average salaries from the current year (rather than the last five years, as is the case with the non-exclusive tag), which makes it more expensive by nature. This tag is quite rare and, theoretically, would only be played on players worth more than two first-round picks.

The transition tag is the least exclusive of the trio, but it is also more affordable for teams. Players issued a transition tag receive a one-year offer from their current team worth the average of the top-10 salaries at their position (rather than the top five, as is the case with both versions of the franchise tag). Teams that issue a transition tag are still given the right of first refusal and may match any offer that the player receives on the open market. However, if they choose not to match the offer, they do not receive any compensation.

The following table shows the values of the non-exclusive franchise tag and transition tag for the 2024 offseason. All salary data was obtained and made public by Over the Cap.

Position Franchise Tag Transition Tag
QB $38,301,000 $34,367,000
LB $24,007,000 $19,971,000
DT $22,102,000 $18,491,000
WR $21,816,000 $19,766,000
DE $21,324,000 $19,076,000
OL $20,985,000 $19,040,000
CB $19,802,000 $17,215,000
S $17,123,000 $13,815,000
TE $12,693,000 $10,878,000
RB $11,951,000 $9,765,000
ST $5,984,000 $5,433,000

 

Key Dates for Franchise and Transition Tags

Teams can only use one tag per offseason, and they're given a limited amount of time to do so -- though internal discussions, conversations, and negotiations surely begin much earlier.

This offseason, teams were allowed to issue their tags as early as February 20. The deadline to designate a tagged player is March 5 at 4 p.m. EST. In theory, most teams would be wise to wait until closer to March 5, as that gives them more time to negotiate a possible extension or change their plans as necessary.

This deadline is roughly one week before the new league year begins, giving teams time to readjust their free agency plans as necessary and evaluate whether they should offer a contract to tagged players.

It should also be noted that players do have a little bit of flexibility; they are not required to sign their tag immediately, though that does not grant them unrestricted free agency. Rather, teams and their tagged players may negotiate multi-year extensions prior to a not-yet-determined offseason date, usually in the middle of July. If an extension is not reached by then, the player is locked into their one-year deal.

Furthermore, a player must sign their tag by the Tuesday following Week 10 of the 2024 regular season. If they fail to do so, they are ineligible to play for the rest of the year.

 

2024 Franchise and Transition Tag Candidates

Not every team will issue a tag this offseason, but some will. There are several "locks" to be tagged, as well as many more fringe candidates. Let's explore some of the names, broken down by the likelihood of a tag being issued. (This list assumes that no contract extension will be reached by March 5.)

Lock

Strong Chance

  • Chicago Bears cornerback Jaylon Johnson
  • Jacksonville Jaguars linebacker Josh Allen
  • Miami Dolphins defensive tackle Christian Wilkins
  • Tampa Bay Buccaneers safety Antoine Winfield Jr. or wide receiver Mike Evans

Unclear

  • Baltimore Ravens defensive tackle Justin Madubuike
  • Las Vegas Raiders running back Josh Jacobs
  • New England Patriots safety Kyle Dugger



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