In the
National Football League, the
franchise tag is a designation a team may apply to a player scheduled to become an unrestricted
free agent. The tag binds the player to the team for one year if certain conditions are met. Each team has access each year to only one franchise tag (of either the exclusive or non-exclusive forms) or one
transition tag. As a result, each team may only designate one player each year as that team's
franchise player.
Usually reserved for players of great skill or of high importance to the team, a franchise tag allows a team's manager the privilege of strategically retaining valuable free-agent players while seeking talent through the NFL draft or other acquisitions without exceeding the League's salary cap. A team may also franchise tag a player with 2 or more years left on a contract.
If the designated franchise player elects to play for the team that designated him with the franchise tag, and does not negotiate a contract with another team his one year salary is guaranteed.
If a club withdraws their offered contract the player immediately reverts to an unrestricted
free agent.