---
slug: "franchise-tag"
title: Franchise Tag
depth_tier: entry
side: UNIVERSAL
category: Financials
source_id: "DFT-0055"
created: 2026-04-19
updated: 2026-04-19
canonical: https://learningfootball.xyz/terms/franchise-tag
---
# Franchise Tag

## Short Definition

A one-year roster designation allowing a team to retain a pending free agent by guaranteeing a salary set at the top market rate for his position.

## Definition

The franchise tag is a one-year roster designation that allows an NFL team to retain a player who would otherwise become an unrestricted free agent. A team may apply one franchise tag per offseason. The tagged player receives a fully guaranteed one-year contract at either the average of the top five salaries at his position or 120% of his previous year's salary, whichever is higher.

Two types exist: the exclusive franchise tag prevents the player from negotiating with other teams; the non-exclusive tag allows negotiation but grants the tagging team two first-round picks in compensation if the player signs elsewhere. In practice, the non-exclusive tag rarely results in outside signings because the compensation cost deters other teams.

The franchise tag is frequently relevant during the NFL Draft. Teams that have not resolved a pending free agent's contract often tag him while using draft capital to add competition or depth at the same position—a signal that the negotiation is ongoing and the team is not yet committed to a long-term deal.

## Example

"They tagged him instead of signing him long-term—buys them another year to figure out if he's worth the contract. Expect that to dominate the conversation whenever his name comes up on draft night."

## Common Confusion

The franchise tag is not a long-term extension. It guarantees one year at market rate—it does not provide security beyond that season. Many tagged players view it as a temporary measure that delays negotiation rather than resolving it, which is why holdout threats are common during tag periods.

## Related

- rookie-contract
- roster-construction
- draft-capital
- trade-up
- veteran

---
Source: https://learningfootball.xyz/terms/franchise-tag