As the NFL offseason unfolds, teams across the league are preparing to make pivotal decisions that will define their strategies for the coming years. In the midst of this strategic chess game, the franchise tag emerges as a crucial tool for retaining top-tier talent. The 2025 offseason showcases this dynamic with teams having a 15-day window, from February 18 to March 4, to secure their key players through these tags.
The Mechanics of Franchise Tags
The franchise tag comes in two distinct forms: exclusive and non-exclusive. The non-exclusive tag allows the tagged player to entertain offers from other franchises, although their current team retains the right to match any competing proposal. The valuation for this tag is grounded in either 120% of the player’s prior salary or the average of the top five salaries at their position, selecting whichever is greater. In contrast, the exclusive tag restricts the player from negotiating with other teams, valuing them at the higher of the aforementioned calculations.
An additional mechanism, the transition tag, determines a player's value based on the average of the top ten salaries at the player’s position and includes a 120% rule. However, this tag does not offer any compensation should the team fail to match another squad’s offer.
Strategic Implications and Market Trends
In recent years, it appears that the intended use of the franchise tag is being better realized. An unnamed source noted, “The franchise tag operated more like it was originally intended this year.” Between 2021 and 2023, less than half of the players tagged managed to ink longer-term agreements, despite seven out of eight tagged players in a recent season ultimately securing multiyear deals. Over the past three seasons, NFL teams have applied franchise tags 22 times, averaging seven applications annually, underscoring their careful utilization.
As the NFL salary cap is projected to stand between $265 million and $275 million for 2025, teams are making calculated decisions to balance immediate needs with future flexibility. For instance, Sam Darnold’s situation with the Minnesota Vikings presents a vivid example of the tag's strategic importance. Currently on a $10 million one-year 'bridge' deal, Darnold's departure could free up as much as $65 million in cap space for the Vikings. But without applying a franchise tag, the Vikings risk forfeiting a compensatory draft pick for 2026.
A source indicated, “There’s a possibility that the Vikings wouldn’t get a 2026 compensatory draft pick by letting Darnold walk in free agency.” Given Darnold's stature as a potential top quarterback on the open market, 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.”
Challenges and Market Dynamics
The intricate calculus of the franchise tag was highlighted by the Cincinnati Bengals’ substantial $21.816 million tag on burgeoning receiver Tee Higgins. Meanwhile, Chris Godwin faces a precarious financial predicament should he be tagged again, propelling the need for teams to innovate under the looming salary cap.
Player movement continues to create a dynamic atmosphere across the league, with notable transfers adding layers to team strategies. Russell Wilson’s transition to the Pittsburgh Steelers from the Denver Broncos is a prime example of how player relocations can reshape team compositions and aspirations.
Yet, in spite of these complexities, the franchise tag remains a fundamental component of team strategy, requiring front offices to engage in a delicate balance of risk and reward. As teams navigate the offseason’s tumult, the franchise tag continues to be both a shield and a bargaining chip in the ever-evolving landscape of the NFL.