Understanding the NFL Franchise Tag: How Teams are Shaping Their Roster Strategies
As the NFL offseason looms, teams across the league prepare to make calculated roster decisions that could alter the trajectory of their franchises. One primary tool in their strategic arsenal is the franchise tag, which has been employed 22 times over the past three seasons, averaging seven applications annually. The 2025 offseason will witness a familiar choreography with teams having a 15-day window from February 18 to March 4 to use this mechanism effectively.
The franchise tag, in its essence, serves as a mechanism for teams aiming to retain their top talents. It comes in two varieties: exclusive and non-exclusive. The non-exclusive variant calculates the tender based on 120% of the player's previous salary or the average of the top five salaries at their position—whichever amount is more significant. While this tag permits players to entertain offers from rival teams, the current team reserves the right to match any proposal.
Conversely, the exclusive franchise tag restricts the player's ability to negotiate with other teams, offering either the higher of the two calculated values, securing the player for another season.
Further complicating the strategic landscape is the transition tag, using the average of the top ten salaries at the player's position. Though similar in calculation, it distinguishes itself by not providing compensation if an offer from another team isn't matched.
The strategic implications of these tags are profound. Take, for instance, the situation involving Sam Darnold and the Minnesota Vikings. Darnold is currently on a $10 million one-year "bridge" deal, but the Vikings face significant cap implications if he departs. Not utilizing a franchise tag could mean forfeiting a potential 2026 compensatory draft pick. Moreover, "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," a source noted. This highlights how teams weigh immediate roster needs against long-term strategic positioning.
Still, it's not all about retention. Franchise tags can lead to significant financial consequences. Chris Godwin, for example, finds himself in an unaffordable scenario should he be tagged again, emphasizing how costly these tags can become over multiple seasons.
The Cincinnati Bengals also offer insight into how teams might employ these tools. They placed a $21.816 million franchise tag on Tee Higgins, illustrating the financial commitment teams may have to make to preserve core talents.
Between 2021 and 2023, fewer than half of the players tagged managed to secure longer-term deals, reflecting a shift in how these tags are eventually employed. Nonetheless, a source hinted, "The franchise tag operated more like it was originally intended this year." This suggests a re-calibration with teams demonstrating reliance on these tags in their traditional role: as tools to buy time for negotiating longer contracts.
The league's financial sphere further underscores these strategic considerations. With the NFL salary cap projected to be between $265 million and $275 million for 2025, budgeting for key positions becomes imperative. The case of Russell Wilson, now quarterbacking for the Pittsburgh Steelers after a significant tenure with the Denver Broncos, illustrates the kind of player movements possible when salary caps are meticulously managed.
Ultimately, the NFL's intricate web of financial maneuvers, exemplified by the franchise and transition tags, transforms the offseason into a critical period for strategic foresight. For many franchises, these tags are not merely tools for talent retention but leverage points in trade scenarios, financial management, and comprehensive team-building strategies. As 2025 approaches, teams are fine-tuning their approaches, ensuring they maximize every dollar and optimize their competitive edges in a league where every decision counts.