Franchise Tag vs. Transition Tag

Before the March 2nd Open Season on NFL players, teams around the league have been scrambling to designate their "Franchis Players". It has come to our attention that many an NFL fan does not know what this means or its how it differs from being given the transition tag.

In both cases the player given the Franchise or Transition Tag is one who will be eligible for free agency at the end of the season. This is a player that the team wants to keep but does not want to get into a bidding war over.

When given the Franchise Tag, the player has the following options:

• The player can resign a one year contract with a salary equal to the average of the top 5 players at his position. So for Rudi Johnson, it's the average of the top 5 RBs, for Drew Brees, the average of the top 5 QBs. Or,
• He can also entertain offers from other teams. If an offer is made the player's current team can match that offer. Here's the catch. If the new team signs the player they must provide his old team two first round draft picks.
  
• So, assuming the average salary for the top 5 RB's is $6.3 Million (which it is) Rudi automatically has the option for a one year $6.3 Million contract with the Bengals. Now suppose Dallas comes along and offers Rudi $8.0 Million. The Bengals can match that offer. If they decide not to, or if Rudi decides to sign with the Cowboys despite the Bengals matching Dallas' offer then the Cowboys have to give Cincinnati two first round draft picks.

For the Transition Tag the rules are similar with two major differences:

1. The amount of the one-year contract is based on the average salary of the top 10 players at the same position as the Transition Player. (For RBs that is $5.2 Million)
2. There are no first round draft picks provided as compensation to the player's current team if he signs with another team.

The advantage of the Franchise Tag to the team is that the two first round draft picks effectively deter most teams from making an offer to the player. This basically eliminates the benefits of free agency, however, the player gets a higher guarenteed salary.

With the Transition Tag, the risk of losing the player is greater, but other than that the current team is in a good position since they can match any offer (increasing the chance their player stays). Additionally, if no one else makes an offer they get him at a salary lower than the Franchise price, a savings that can be applied to the salary cap. Meanwhile the player has a greater opportunity at hand to test the free agency market.

Which is best? Well, that is why GMs get the Big Bucks. To make those decisions.