Tuesday, March 5, 2013

The Franchise Tag

The deadline was 4PM yesterday to apply either the franchise tag or transition tag to a player with an expiring contract on a team's roster. What does that mean?

The franchise tag basically prevents a player from becoming a free agent. A team can apply one of three tags:
- The exclusive-rights franchise tag: The tagged player cannot negotiate with any team other than the one that applied the tag.
- The non-exclusive-rights franchise tag: The tagging team gains the right to match any contract offer. If they decline, they get 2 1st round picks from the signing team as compensation. Normally, in lieu of another team signing the player and forfeiting 2 1st rounders, the two teams will instead agree to a trade.
- The transition tag: The tagging team gains the right to match any contract offer. If they decline, they receive no compensation. For information on why this is a bad tag to use, google Steve Hutchinson poison pill

In practice, the non-exclusive-rights franchise tag is predominantly the one used. For the second year in a row, it was the only tag type used.

When a player is tagged, they are assigned a tender amount as their salary for the upcoming season. They can either sign the tender and lock in that fully guaranteed salary for the season, or attempt to negotiate a long-term contract (almost always with the tagging team).

However, even before the player may sign the tender, that amount of money is counted against the tagging team's cap. The transition tag tender is lower than the non-exclusive-rights franchise tag tender, which itself is lower than the exclusive-rights franchise tender. For QBs, we're talking a difference of $12.8 Million (transition), $14.9 Million (non-exclusive), and around $20 Million (exclusive).

The table below shows which teams used the tag (and on who) prior to last season and before today's deadline (note: all tags in the table below are franchise tags):

Team
Franchise/Transition Tag, 2012
Franchise/Transition Tag, 2013
Buffalo Bills
No one
S Jarius Byrd
Miami Dolphins
No one
DT Randy Starks
New England Patriots
WR Wes Welker
No one
New York Jets
No one
No one
Baltimore Ravens
RB Ray Rice
No one
Cincinnati Bengals
K Mike Nugent
DE Michael Johnson
Cleveland Browns
K Phil Dawson
No one
Pittsburgh Steelers
No one
No one
Houston Texans
No one
No one
Indianapolis Colts
DE Robert Mathis
P Pat McAfee
Jacksonville Jaguars
K Josh Scobee
No one
Tennessee Titans
S Michael Griffin
No one
Denver Broncos
K Matt Prater
OT Ryan Clady
Kansas City Chiefs
WR Dwayne Bowe
OT Brandon Albert
Oakland Raiders
S Tyvon Branch
No one
San Diego Chargers
No one
No one
Dallas Cowboys
LB Anthony Spencer
LB Anthony Spencer
New York Giants
P Steve Weatherford
No one
Philadelphia Eagles
WR DeSean Jackson
No one
Washington Redskins
TE Fred Davis
No one
Chicago Bears
RB Matt Forte
DT Henry Melton
Detroit Lions
DE Cliff Avril
No one
Green Bay Packers
No one
No one
Minnesota Vikings
No one
No one
Atlanta Falcons
CB Brent Grimes
No one
Carolina Panthers
No one
No one
New Orleans Saints
QB Drew Brees
No one
Tampa Bay Buccaneers
K Connor Barth
No one
Arizona Cardinals
DE Calais Campbell
No one
San Francisco 49ers
S Dashon Goldson
No one
Seattle Seahawks
No one
No one
St. Louis Rams
No one
No one

Notice 21 teams used the tag last year. Only 8 used it this year.

Why? Take a look at the tender amounts for 2011, 2012, and 2013.

Position
Tag Value, 2011
Tag Value, 2012
Tag Value, 2013
Quarterback
$16.1 Million
$14.4 Million
$14.9 Million
Running Back
$9.6 Million
$7.7 Million
$8.2 Million
Wide Receiver
$11.4 Million
$9.4 Million
$10.5 Million
Tight End
$7.3 Million
$5.4 Million
$6.1 Million
Offensive Line
$10.1 Million
$9.4 Million
$9.8 Million
Defensive End
$13.0 Million
$10.6 Million
$11.2 Million
Defensive Tackle
$12.5 Million
$7.9 Million
$8.5 Million
Linebacker
$10.1 Million
$8.8 Million
$9.6 Million
Cornerback
$13.5 Million
$10.6 Million
$10.9 Million
Safety
$8.8 Million
$6.2 Million
$6.9 Million
Kicker/Punter
$3.3 Million
$2.6 Million
$3.0 Million

Notice how the values dipped between 2011 and 2012. This happened because the owners fought to rewrite the rules on how to calculate the tenders during the 2011 CBA, which went into effect prior to the 2012 season.

Under the old CBA, the formula was simple: average the top-5 salaries at that position, and you have the tender amount for that position. The new formula was much more complicated: looking at the last 5 seasons, look at how much (as a percentage) of the total cap room was taken up by the tender for the position, then that's your tender amount. Why make things more complicated? Because it drove the cost of the tag tenders down, as you can see above.

One other note on tender amounts: if you tag a player twice, he gets 120% of his salary from last season. Tag him a third time, and it's 144% of his previous season's salary. The Cowboys are running into this with Anthony Spencer this year.

So there you go, everything (if not more than) you wanted to know about the franchise tag.

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