The NFL offseason is a pivotal period for teams to strategize and make moves that could define their future. A significant component of this strategic period is the use of franchise tags, which are pivotal tools for retaining top-tier talent. In 2025, teams will have the opportunity to utilize these tags during a 15-day window stretching from February 18 to March 4, a crucial time for laying the groundwork for the coming season.
The franchise tag comes in two distinct varieties: exclusive and non-exclusive, each with its strategic implications. The non-exclusive tag is calculated by taking the greater of either 120% of the player's previous salary or the average of the top five salaries at their position. This tag allows players to field offers from other teams, granting their current team the right to match any competing offers. In contrast, the exclusive franchise tag provides the higher salary calculation and restricts the player from discussing agreements with other teams, thus ensuring the team retains control over their star talent.
Besides these, there is the transition tag, which is determined by the average of the top ten salaries at the player’s position and also includes a 120% pay provision. However, it does not provide compensation if offers from other teams remain unmatched. While these tags provide teams flexibility and control, they present challenges as well, particularly in negotiating long-term contracts.
A current trend reflects the complexity of franchise tags: over the past three seasons, they have been applied a total of 22 times, averaging seven applications annually. Yet, fewer than half of the tagged players from 2021 to 2023 have successfully secured longer-term deals. Interestingly, in a recent year, seven out of eight players who received franchise tags chose the security of multiyear agreements. An unnamed source noted, "The franchise tag operated more like it was originally intended this year," hinting at a strategic return to the tag's foundational purpose.
These tags become particularly interesting when considering high-profile team dynamics in the current offseason. For instance, Sam Darnold, now part of the Minnesota Vikings on a $10 million one-year "bridge" deal, stands at a crucial juncture. If Darnold departs, the Vikings could potentially free up a significant $65 million in cap space. However, if they do not utilize the franchise tag on him, the team risks not receiving a compensatory draft pick in 2026. A source highlighted, "There's a possibility that the Vikings wouldn't get a 2026 compensatory draft pick by letting Darnold walk in free agency." This underlines the potential strategic advantage of tagging Darnold, not only to retain or trade him but to recoup value for letting him go.
Chris Godwin of the Tampa Bay Buccaneers also finds himself under a microscope as franchise tag calculations might make another tag financially impractical. While Cincinnati Bengals wide receiver Tee Higgins was placed under a $21.816 million franchise tag, a clear indication of his value to the team.
Furthermore, Russell Wilson's move to the Pittsburgh Steelers exemplifies the fluidity and high-stakes maneuvers typical of the offseason, particularly after his significant tenure with the Denver Broncos. Each of these cases illustrates how NFL teams weigh the implications and opportunities presented by franchise tags, against the backdrop of a projected 2025 salary cap set to be between $265 million and $275 million.
The franchise tag remains a crucial, yet intricate part of NFL team management, reflecting both opportunity and risk. As the offseason progresses, the decisions made today will inevitably shape the competitive landscape of tomorrow, showcasing the ever-evolving strategies of America's most-watched sport.