NFL
Breaking Down the Franchise Tag and Its Implications
Fantasy owners are in disarray with the absence of Le’Veon Bell just days away from the Pittsburgh’s season opener. The Steelers slapped the running back with the Franchise Tag yet again, much to Bell’s chagrin. Find out why this designation is keeping Bell off the field.
What is the Player Franchise Tag?
The Player Franchise tag was first introduced in 1993. Article 10 of the current Collective Bargaining Agreement defines the Franchise Tag and the specific terms surrounding it as it stands currently. Each team/franchise retains the right to designate one of its players – who would have otherwise been an Unrestricted Free Agent – as a Franchise Player. When a team designates a player with the Franchise Tag it, in essence, contractually binds the player to that team. There are two types of Franchise Tags, exclusive and non-exclusive.
Exclusive Franchise Tag
- One year contract
- Contract salary is whichever is greater
- An amount no less than the average of the top five salaries for the player’s position (QB, RB, etc…) as of the April in the year the tag will be applied
- 120% of the player’s previous year salary
- The Team who designated the player with the Franchise Tag retains the right to be the only franchise within the league who the player can negotiate with
Non-Exclusive Franchise Tag
- One Year Contract
- Contract salary is whichever is greater
- An amount no less than the average of the top five cap hits at the player’s position for the previous five years applied to the current salary cap
- 120% of the player’s previous year salary
- Players may negotiate with any of the 32 teams in the league, however, the team who designated the Franchise Tag maintains the right to match any offer the Franchise Player receives
- Example: If John Smith’s contract with team A lapses, he is free to negotiate with all other 31 teams. If team B makes John an offer, team A retains the right to match that offer before John can sign with team B. If team A does not match or counter, John is free to sign with team B.
Current Year Franchise Tag Salaries
QB: $23,189,000. RB: $11,866,000. WR: $15,982,000 TE: $9,846,000 OL: $ 14,077,000. DE: $17,143,000. DT: $14,939,000. LB: $14,961,000. CB: $14,975,000. S: $11,287,000. K/P: $4,939,000.
Why Do Teams Use the Franchise Tag?
The short answer: keep their best players and avoid signing big money contracts. Free Agents with high market value and nearing the end of their contracts can be a headache for front offices. The team, up until that point, was likely retaining the player for relatively cheap. Once the player’s contract lapses, other teams in the league will offer to pay the FA close to or above their market value. In order for a team to re-sign the free agent, they will need to match or counter these large money offers. If the team is close to exceeding its salary cap or has other players with expiring contracts on the team, matching an offer can be problematic.
By designating a free agent as a Franchise Player, it impedes such a player from receiving offers from other franchises. This also allows the team to re-sign the player without having to commit to a long-term contract. Re-signing a player to a new contract can be incredibly costly in the near and far future; signing bonuses, guaranteed salary, and more add up quickly.
Pros & Cons of the Franchise Tag
Pros
The original purpose of the Franchise Tag was to hinder players’ abilities to go to larger markets. Players in smaller markets like Cincinnati and Buffalo have clear financial incentives to go to cities such as Dallas, New York, or Los Angeles. This also helps prevent the “ring chasing” we often see in the NBA. A disproportionate balance of talent in a league can cause ratings to crash as the game feels less competitive.
From a team standpoint, the Tag protects teams like Cleveland or Miami who have a harder time keeping valuable players. By using the Exclusive Franchise Tag, teams can keep talent to hopefully build around. Teams also save money by not having to hand out new contracts to their Franchise Players; these contracts include expensive signing bonuses and guaranteed money.
Cons
By the very nature of the Franchise Tag, players receive the short end of the stick. The Franchise Tag restricts the player’s rights and abilities to negotiate potential contracts and receive fair compensation. Players like Le’Veon Bell, whose market value would provide them a lucrative contract, are handcuffed to much smaller paychecks without advocation. This has, unsurprisingly, caused great frustration with players who have begun to protest in the only way they can: not showing up. Their absence does not come without a cost, however, due to fines agreed upon in Article 4, Section 9 of the Collective Bargaining Agreement.
What This Means For Le’Veon Bell
While the pros and cons of the Franchise Tag clause seem to outweigh each other in the grand scheme of the NFL, players are the only ones suffering from the cons. Le’Veon Bell has been contractually unable to negotiate with the other 31 teams or demand more money from Pittsburgh — hindering him from receiving a fair contract. Bell has chosen to reject the only offer he is able to receive by simply not showing up. The question shouldn’t be where is Le’Veon or even how to get him back. The question, rather, should be how to balance the scales to protect Tagged players. The pendulum may have swung too far in favor of the franchises.
Photo Credit: Brook Ward via Flickr
Follow Lauren Phillips on Twitter: @LaurenP_52
