NFL

Explaining How The NFL Transition Tag & Franchise Tag Works

Anthony Cardenas Sports Editor

Published18 Feb 2025

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One of the first of the important dates on the NFL off-season calendar is the opening of the franchise tag window. Beginning on February 18th, teams have two weeks to place tags on pending free agents from the previous year’s roster to avoid or limit their availability on the open market.

But what exactly is a franchise tag? And what do “exclusive” and “transitional” designations mean?

The franchise tag was created when free agency took off back in 1993. It allowed teams a chance to keep their players in the fold without agreeing to long term contracts, allowing them to hold on to important pieces for at least another season. It is a one-year deal on a set, non-negotiable salary, of which the payments vary from position to position. They are used strategically, enabling franchises to manage costs without making multi-year commitments.

What Are The Different Types Of Franchise Tags For The NFL?

There are different levels and types of franchise tags, each with their own benefits.

“Exclusive” Franchise Tag:

This is the option that you will see NFL teams most commonly utilize. The exclusive tag keeps the player on the tagging team with no questions asked. They immediately hold all negotiating rights, barring any other team from making contact with the player. In exchange, the player is given a one-year deal for an amount that is no less than the average of the top-5 salaries in the NFL at the player’s particular position.

“Non-Exclusive” Franchise Tag:

A non-exclusive tag is similar to the exclusive one, but does not stop the tagged player from negotiating with other teams. It instead allows the original team to match any offer that the player receives, which must be done within a seven-day window. If the original team matches, then they retain the player on whichever contracts was agreed to, essentially letting the other team set terms for the deal. If they don’t match, then the original team receives compensation in the form of two first round picks in the NFL Draft.

Transition Tag:

The transition tag is a cheaper option for teams looking to retain their free agents. Instead of the cost being the average salary of the top-5 players at a certain position, it is instead the average of the top 10. It, too, allows players to negotiate with other teams, and gives the original team a chance to match any offer. But the transition tag doesn’t provide the two first round draft picks as capital if the player leaves, instead leaving the original team with no compensation for the departed free agent.