What Is A ‘Non-Exclusive’ Franchise Tag?
Nov 24, 2013; Kansas City, MO, USA; San Diego Chargers quarterback Philip Rivers (17) is sacked by Kansas City Chiefs outside linebacker Justin Houston (50) in the first half at Arrowhead Stadium. Mandatory Credit: John Rieger-USA TODAY Sports
There are three types of tags: exclusive, non-exclusive and transition. The third is rarely ever applied, so let’s focus on the first two.
Players who are franchised with the exclusive tag can’t negotiate with any team outside of their current one. Their tender can be based on one of two formulas (whichever results in a larger payday).
The first averages the top five salaries at their position at the end of restricted free agency. The second formula is simply a 120 percent increase of their most recent (2014) salary.
However, Dorsey used the non-exclusive tag on Houston, which is a little more convoluted.
Other teams can offer the All-Pro a new contract, and if he signs it, the Chiefs will have an opportunity to match it and retain him. On the other hand, if Kansas City doesn’t match the offer, they receive two first-round picks as compensation.
Another thing: Tagging Houston doesn’t mean that he can’t sign a long-term deal this offseason—it would just have to be before 3 p.m. (CST) on July 15.