Beginning February 17, NFL teams have the option to assign either a franchise or transition tag to one of their players set to become an unrestricted free agent when the new league year begins on March 11. This window remains open until 4 p.m. on March 3.
The franchise tag is a mechanism negotiated in the collective bargaining agreement that allows each team to designate one impending unrestricted free agent for a guaranteed, non-negotiable one-year contract if the player signs the tender. Teams can only use either the franchise tag or the transition tag in a given offseason, not both. The franchise tag is more frequently used than its counterpart.
There are two types of franchise tags: exclusive and non-exclusive. The exclusive franchise tag prevents other teams from negotiating with the tagged player and comes with a higher salary, determined by whichever is greater: the average of the top five salaries at that position during the current year or 120 percent of the player’s previous salary. This version is rarely used.
The non-exclusive franchise tag allows players to negotiate with other teams once free agency opens, but their current team has the right to match any offer sheet received. If they choose not to match, they receive two first-round draft picks as compensation. Most teams use this less expensive version, although it carries some risk—though it’s rare—for losing a player who signs elsewhere.
In 2024, the Indianapolis Colts placed a non-exclusive franchise tag on wide receiver Michael Pittman Jr., then later signed him to an extension. Before this move, their last use of any kind of tag was in 2013 on punter Pat McAfee.
Teams may also use a transition tag instead if they opt not to use their franchise designation but still wish to retain negotiating rights over an impending free agent. The transition tag offers a lower salary based on the average of the top ten salaries at that position over five years and only provides matching rights without any compensation if another team signs away the player.
Over the past decade, six NFL players have received transition tags; among them are Kyle Dugger (Patriots), Kenyan Drake (Cardinals), and Kyle Fuller (Bears). Only two played out a full season under such terms without signing extensions.
The timing for these decisions is typically close to deadline day; only four players have been tagged in February across all teams over seven recent offseasons, and no one has received a transition tag that early since at least 2014.
Once tagged under either designation, teams have until July 15 (for franchise tags) or one week later (for transition tags) to negotiate multi-year extensions with those players. Failing that, only a one-year deal can be signed until after regular season play concludes.
Players are not required to sign their tags immediately; they may hold out as Le’Veon Bell did in 2018 or see their tags rescinded like Josh Norman’s was by Carolina in 2016.
Historically, since 1993, Indianapolis has used seven franchise tags—most recently for Pittman Jr.—and three transition tags over three decades. Until tagging Pittman Jr., Indianapolis had gone more than ten years without using either designation—the second-longest streak in league history behind Philadelphia’s stretch after tagging DeSean Jackson in 2012.
Among those eligible for free agency from Indianapolis this offseason are running back Ameer Abdullah, tight end Mo Alie-Cox, safety Nick Cross, defensive end Samson Ebukam, linebacker Germaine Pratt and others.
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