As the NFL offseason unfolds, front offices across the league are relying on strategic maneuvers to shape their rosters for the coming years. A pivotal tool in these efforts is the franchise tag, which allows teams to retain top talent under specific contractual conditions. In 2025, the stakes are higher than ever, as teams have a slim 15-day window from February 18 to March 4 to decide the fate of key players.
Understanding Franchise and Transition Tags
Franchise tags are categorized into two types: exclusive and non-exclusive. The non-exclusive tag is determined by calculating 120% of the player's previous pay or the average of the top five salaries at their position, whichever is greater. This tag affords players the freedom to negotiate with other teams, though their current team retains the right to match any irresistible offers. The exclusive tag, on the other hand, often results in a higher salary and restricts the player from engaging in talks with other potential suitors.
Additionally, the transition tag involves calculations based on the average of the top ten salaries for a player's position, with a similar 120% provision. However, the transition tag lacks the leverage of compensation if the originating team chooses not to match offers from competing clubs.
The Landscape of Franchise Tag Applications
Recent trends highlight a mixed landscape for players subjected to these tags. Reflecting on the past few seasons, franchise tags have been wielded 22 times altogether, averaging about seven applications per year. Interestingly, only seven out of eight tagged players in a recent cycle sealed multiyear agreements, while less than half of the tagged athletes between 2021 and 2023 secured extended contracts.
For players like Chris Godwin, the financial burden of consecutive tagging renders new agreements challenging. The wide receiver faces an 'unaffordable scenario,' given the escalating costs dictated by the tag's calculation methods, emphasizing the intricate decisions teams must make under salary cap constraints.
Salary Cap and Strategic Decisions
The NFL salary cap for 2025 projects to range between $265 million and $275 million. Teams are cautiously strategizing their budgets to balance keeping valued players and recruiting new talent, knowing that franchise tags play a crucial role in these calculations.
Take the Minnesota Vikings' situation with quarterback Sam Darnold. Currently under a $10 million "bridge" deal, Darnold's future with the team remains uncertain. Letting him walk without a franchise tag might risk missing out on a 2026 compensatory draft pick. "There's a possibility that the Vikings wouldn't get a 2026 compensatory draft pick by letting Darnold walk in free agency," asserted a source. With Darnold poised to be a top commodity in the open market, leveraging a franchise tag for potential trade value presents a viable option. "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," according to insiders.
In another significant development, the Cincinnati Bengals opted to place a franchise tag on Tee Higgins, valued at $21.816 million, to ensure his stay as a cornerstone of their offensive strategy. Meanwhile, Russell Wilson has transitioned to the Pittsburgh Steelers after his tenure with the Denver Broncos ended, signaling yet another shift in the quarterback landscape.
Reflections on the Franchise Tag's Role
A league insider succinctly captured the sentiment surrounding this year's usage of the franchise tag: "The franchise tag operated more like it was originally intended this year." This comment underscores the return to the tag's fundamental purpose of maintaining team stability and securing talented athletes.
As the NFL offseason progresses into its defining weeks, team executives and fans alike keep a close watch on how these complex decisions will shape the league's competitive balance. The delicate dance of navigating contracts, player interests, and strategic goals underlines the exhilarating yet challenging nature of front office decision-making in professional football. Each franchise tag placed or reserved may tip the scales, influencing the outcomes for teams aiming for success in the coming seasons. The pressure is on, and the stakes have never been higher.