NFL Offseason Strategy: The Art of the Franchise Tag
The NFL offseason is an arena where strategy, finance, and talent converge, shaping the future of teams league-wide. Central to this dynamic is the use of franchise tags, a tool crafted to help teams retain top talent while keeping one eye on salary cap constraints. This year's offseason brings particular attention to how strategic these decisions must be.
The franchise tag can manifest in two forms: the exclusive and the non-exclusive tag. The exclusive tag allows a team to secure a player by using the higher of two calculations: 120% of the player's previous salary or the average of the top five salaries at their position. This tag effectively barricades a player from exploring options with other teams. In contrast, the non-exclusive tag provides some flex, letting players negotiate with other teams while granting their originating team the right to match any offers that come their way.
In 2025, the window for teams to apply franchise tags is set between February 18 and March 4. This short timeframe demands precision and foresight from team management, as they navigate not only their salary cap but also the potential impacts of player loyalty and market demand.
For instance, the Minnesota Vikings are facing a critical decision regarding Sam Darnold, who currently plays under a $10 million "bridge" deal. The departure of Darnold could open up a substantial $65 million in cap space. However, failing to use a franchise tag might mean the Vikings forfeit any compensatory draft pick in 2026. As a source noted, "There's a possibility that the Vikings wouldn't get a 2026 compensatory draft pick by letting Darnold walk in free agency." Furthermore, Darnold may very well be the top quarterback on the open market, prompting another source to speculate, "Since Darnold would clearly be the top quarterback available on the open market, using a franchise tag to trade him isn't out of the question."
This strategic decision-making is not only limited to the Vikings. The Tampa Bay Buccaneers face a crunch with Chris Godwin, illustrating the financial burden that repeated tagging can pose. Being tagged again would bind the team to an unaffordable payout under the current calculation methods, nudging them towards seeking longer-term, more sustainable solutions.
Meanwhile, the Cincinnati Bengals have opted to apply a $21.816 million franchise tag on Tee Higgins, underscoring the team's commitment to securing their assets amidst a competitive landscape.
Yet, as history suggests, the application of these tags doesn't always guarantee long-term retention of star players. Between 2021 and 2023, fewer than half of the players tagged transitioned into longer-term deals. Nonetheless, while franchise tags have been applied 22 times over the previous three seasons, at least seven out of eight players tagged in recent years signed multiyear agreements, hinting at a trend where the tag might lead to broader commitments.
A critical factor influencing these moves is the league's salary cap, which, for 2025, is projected to soar between $265 million and $275 million. Such projections provide teams with a financial roadmap, yet the challenge remains to balance player contracts within this cap, especially with key players like Russell Wilson now with the Pittsburgh Steelers, following his departure from the Denver Broncos.
Another tool at teams' disposal is the transition tag, which is calculated using the average of the top ten salaries at a player’s position with a 120% provision. However, it offers less security, as it does not provide compensation if another team makes a successful offer that isn't matched by the tag-placing team.
This offseason, the league has witnessed the franchise tag operate more closely to its original intention of player retention, according to an unnamed source. The methodical application of these tags indicates a shift towards strategic groundwork aimed at long-term stability rather than short-term gains. Each decision is a gamble, a bet on the future performance, health, and marketability of some of the league's brightest talents.
Ultimately, as teams navigate the precarious terrain of player negotiations and market maneuverings, the franchise tag remains a cornerstone tool, serving as a bridge between potential and promise in the complex chess game of NFL management. The decisions made now could echo into the next decade, shaping the league's competitive landscape for years to come.