The NFL’s two-week tag window opens each offseason, giving teams a narrow opportunity to retain negotiating control over key pending free agents. Clubs are permitted to use only one designation per year, either a franchise tag or a transition tag. For the 2026 offseason, the window closes on March 3, one day after the NFL Scouting Combine concludes.
Free agency begins March 11. While the franchise tag receives most of the attention, the transition tag remains a strategic alternative. Understanding the structural and financial differences explains why teams deploy each mechanism.
How the Franchise Tag Works
There are two versions of the franchise tag, non-exclusive and exclusive.
The non-exclusive franchise tag is a one-year tender calculated using a cap-percentage formula tied to the previous five seasons. The final figure equals the average of the top five cap numbers at the position or 120 percent of the player’s prior salary, whichever is greater. A tagged player may negotiate with other teams. If he signs an offer sheet and his original team declines to match, that team receives two first-round picks as compensation.
The exclusive franchise tag removes all outside negotiation. The salary becomes the greater of the current year’s top-five positional cap average or 120 percent of the player’s previous salary. It is most commonly used for quarterbacks because of the leverage involved.
Interestingly, the Baltimore Ravens did not use the exclusive tag on Ravens quarterback Lamar Jackson in 2023, opting instead for the non-exclusive version. That decision allowed outside negotiation but ultimately led to a long-term deal. Jackson and Cowboys quarterback Dak Prescott also negotiated clauses into their contracts that prevent the franchise tag from being used again, highlighting how elite players often seek protection from the designation.
For 2026, projected non-exclusive franchise tag ranges illustrate the financial stakes. Quarterbacks are projected to cost roughly $43.9 million to $44.5 million. Defensive ends could land between $24.4 million and $24.8 million, a figure relevant in situations like Cincinnati’s with Trey Hendrickson, where the Bengals must weigh cost against leverage.
Running backs project between $14.3 million and $14.5 million, a range that could come into play for the Jets if they designate Breece Hall. Those figures count immediately against the salary cap once applied.
The franchise tag is frequently used as leverage toward a long-term extension or to facilitate a trade. In 2024, Brian Burns and L’Jarius Sneed were tagged and later traded. Over the past three years, 75 percent of franchise-tagged players ultimately signed multi-year deals.
How the Transition Tag Differs
The transition tag is calculated using the same cap-percentage formula but based on the top 10 salaries at the position, making it less expensive. Like the non-exclusive franchise tag, the player can negotiate with other teams. His original club retains the right of first refusal. The key difference is compensation. If the team declines to match an offer sheet, it receives no draft picks in return.
That absence of compensation explains why the transition tag is used sparingly. It provides flexibility and a lower cap charge but carries real risk. The Patriots used it on safety Kyle Dugger in 2024 before reaching a long-term agreement. Prior to that, the tag had rarely appeared in recent cycles.
Why Teams Use Either Tag
At its core, the designation buys time. It preserves negotiating leverage, prevents immediate unrestricted free agency, and allows teams to explore extensions or trades. Players and teams have until July 15 to agree on multi-year contracts. After that, the player must either sign the one-year tender or remain unsigned.
Whether a team chooses the stronger protection of the franchise tag or the flexibility of the transition tag reflects its leverage in negotiations and its tolerance for risk.
