Introduction
The NFL’s tag deadline is a key offseason checkpoint, giving teams one last tool to keep pending free agents from hitting the open market uncontested. Clubs can apply one of three tenders: the non-exclusive franchise tag, the exclusive franchise tag, or the transition tag. Each option sets a one-year salary level using a formula tied to top contracts at the player’s position, and each creates a different mix of leverage, negotiating flexibility, and risk.
Non-Exclusive Franchise Tag
The non-exclusive franchise tag is the version most people mean when they say “franchise tag.” It is a one-year tender valued at the average of the top five salaries at the player’s position over the last five years, or 120% of the player’s previous salary, whichever is greater.
This tag allows the player to negotiate with other teams. If the player signs an offer sheet elsewhere, the original team has the right to match that offer. If it declines to match, it receives two first-round draft picks as compensation if the player signs with the new club.
Exclusive Franchise Tag
The exclusive franchise tag is a more restrictive and typically more expensive version. It gives the tagging team the sole right to negotiate with the player, meaning the player cannot talk to other clubs to generate an offer sheet.
The salary is calculated as the average of the top five salaries at the position for the current year, or 120% of the player’s previous salary, whichever is greater. Because it blocks outside negotiation and is usually costlier, it is rarely used and is most associated with positions where outside interest would be massive, most notably quarterback.
Transition Tag
The transition tag is a one-year tender valued at the average of the top 10 salaries at the player’s position. Like the non-exclusive franchise tag, it gives the original team the right of first refusal to match any offer the player receives from another club.
The key difference is compensation. If the original team chooses not to match an offer, it receives no draft pick compensation. That makes the transition tag a softer form of control, often used when a team wants matching rights but is less willing to commit to franchise-tag level costs or protections.
Conclusion
The three tags reflect different strategic choices. The non-exclusive franchise tag offers the strongest protection through match rights and two first-round pick compensation. The exclusive franchise tag maximizes team control by eliminating outside negotiation but typically carries a higher price. The transition tag provides matching rights at a top-10 salary level, but with no compensation if the player leaves. Teams choose among them based on budget, position value, and how badly they want to prevent a player from reaching the open market.