Everything you want to know about the NFL franchise tag
By Britt Zank
The Kansas City Chiefs, like every NFL team, are currently reviewing their roster for possible franchise tag candidates. Here’s everything you need to know about the franchise tag and how it works.
The franchise tag was introduced into the league in 1993. Each team gets one tag and can apply it to any player set to become an unrestricted free agent. The franchise tag is a one year contract for no less than the average of the top five salaries at the player’s position or 120 percent of their previous year’s salary, whichever is greater. A team is not required to use a tag if they don’t choose to.
There are three types of tags a team can use; exclusive tag, non-exclusive tag or transition tag. With all the tags the salary is the same and length of the deal are the same. They do have some major differences though and teams must decide which fits their need best.
The exclusive tag means that player cannot negotiate with any other teams once the team applies it. The team owns that player’s rights as if they were under any contract so the team can trade them or resend the tag, but the player is stuck. The only choice the player has is whether to sign the contract or not. If they don’t sign it then they must sit out the entire season as they can’t negotiate with other teams until the start of the next football year.
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The non-exclusive tag carries with it the same rules as the exclusive tag, except for the player is allowed to negotiate with other teams. If the player signs an offer sheet for another team, the original team has the right to match the terms to keep them. Yet, if the original team declines to match, then they would receive two first round draft picks as compensation. In other words, the non-exclusive tag means if the player finds a new team then that team would trade two first round picks for them.
If a team chooses not to give a player either of those tags, then can place a transitional tag on one. This tag is a one year deal and pays the average of the top ten salaries at the position or 120 percent of the players last year’s salary, whichever is higher. Like the non-exclusive tag, the player is free to negotiate with other teams for a new contract. Also like the non-exclusive tag the original team has the right to match any offer to keep the player. If the original team chooses not to match the offer, then they receive no compensation.
The most times a player has been tagged is three, but it’s very rare for a player to receive more than two tags. The only difference between the first tag and the second tag is the salary they receive. For the second tag the salary is 120 percent of the previous year’s tag number. The reason nobody goes for three tags is because the salary would increase to 144 percent of the second tag. Combine that price with the player’s anger makes it not worth it.
Teams love the tag because it gives them the ability to keep a great player on a cost effective one year deal. It also forces the player to only negotiate with them, keeping the team from risking a bidding war with other teams for the player’s services. Some player’s like the tag because it guarantees them a top salary at their position for the next season. Most players don’t like the tag though. They don’t like being locked into only a one year deal when they are looking at high priced long term deals on the free agent market. For example, if the player gets injured during their tag season they may see their value drop dramatically. This could lose a player a lot of money in the long term.
The Chiefs have seven players eligible for the franchise tag, but only two worthy of franchise tag consideration: Dontari Poe and Eric Berry. Both players are expected to be heavily recruited by other teams if they hit the free agent market. This means signing both players to extended contracts is unlikely. The Chiefs could afford to sign one and tag one, since the tag would be for only one year and the new contract player would likely have a low cap number in the first year.
Eric Berry played under the tag in 2016 meaning the Chiefs would have to tag him for a second time. This would bring his salary up to an estimated $13 million. This would make Berry the highest paid safety in the league for 2017. Berry has stated that he would not play under the tag again, despite the salary. I don’t believe Berry for a second that he would sit out the entire 2017 season to prove a point. He would not be happy though and it would be a black cloud hanging over the franchise the entire season.
Dontari Poe presents a more complicated issue. Poe has been solid for the Chiefs since getting drafted in 2012. Hungry Pig Right and the Bloated Tebow Pass are the two most famous Chiefs’ play names since 65 Toss Power Trap. Like Berry, Poe is popular with the fans and his teammates. The question mark for Poe comes down to his body. He has spent the last two season dealing with back injuries, which is a scary reality for a 360-pound man. The backs of men his size who take the pounding he does generally only get worse. Despite a down year in 2016, he still played well enough to earn a big deal that the Chiefs most likely can’t afford. So keeping him on a one year $13.5 million franchise tag could be their best option if they want to keep him.
For my money, I would keep the tag in my pocket if I was running the Chiefs. I don’t want the distraction and questions with Berry. I don’t want to risk such a high cap hit on Poe in case his back goes out. I’d recommend negotiate with both players for team-friendly contracts. If they want to go chase the money then I’d wish them both good luck in all their future endeavors. The Chiefs have good depth at both positions, and I would feel comfortable heading into 2017 with or without them.