What is the NFL Franchise Tag and what does it mean?

Mar. 13 at 4 p.m. ET officially marks the beginning of the 2024 league year and the official start of NFL free agency.

With free agency around the corner, we will hear the phrase “franchise tag” thrown around often when discussing players on the open market, but what exactly does the term mean?

What is the NFL Franchise Tag?

The franchise tag is a unique contract only available in the NFL, tailored to help teams secure players on a set one-year contract based on positional market value for the upcoming season. For example,

The only players who can be franchise-tagged are those who will be free agents.

Teams are limited to only one franchise tag per offseason, making it difficult to decide who to use it on and when. Typically, players are tagged if they and their respective franchise cannot agree on a long-term contract, serving as a last resort option.

Moreover, the franchise tag presents an opportunity for teams like the reigning Super Bowl Champion Kansas City Chiefs, who plan to tag stud cornerback L’Jarius Sneed to make way for All-Pro defensive tackle Chris Jones’ looming contract extension – allowing them to retain multiple high-profile free agents in the same offseason.

There are two types of franchise tags: exclusive and non-exclusive.

Under the exclusive tag, players cannot enter contract discussions with other teams, locking them into a one-year fully guaranteed salary – while the non-exclusive tag allows players to explore the market in search of a new deal.

If they receive an offer from another franchise, the original team can match it. However, if the latter decides to move on, they are given two first-round picks in exchange for losing the player they tagged and ultimately lost.

Here are the positional values for the non-exclusive tag in 2024:

• Quarterback: $38.3 million
• Running back: $11.951 million
• Wide receiver: $21.816 million
• Tight end: $12.693 million
• Offensive line: $20.985 million
• Defensive end: $21.324 million
• Defensive tackle: $22.102 million
• Linebacker: $24.007 million
• Cornerback: $19.802 million
• Safety: $17.123 million
• Kicker/punter: $5.984 million

What does the NFL Franchise Tag do?

It essentially buys both sides more time to work out a long-term contract or other resolution while ensuring the player remains on the roster and under team control.

The deadline to strike a new deal on the franchise tag is July 15. If not, players must choose between playing the season out on the tag or forfeiting game checks and sitting out entirely.