THE FRANCHISE TAG
The Franchise Tag is a scam. When teams can’t reach a deal with their star player, they can slap the franchise tag on them and basically hold them on a one-year deal.
There are 3 types of franchise tags.
Exclusive Tag – a team will pay that player no less than the average of the top five salaries at the player’s position, or 120 percent of the player’s previous salary, whichever is greater. The player is not allowed to negotiate with other teams.
Non Exclusive Tag – involves the same salary offer as an exclusive franchise tag, only the player can negotiate with other teams. The player’s current team can match any offer sheet. If the old team declines to match the offer, it gets two first-round picks from the other team as compensation. This is the more commonly used franchise tag.
Transition Tag – a team offers the player a salary that is the average of the top 10 salaries at his position. That player can negotiate with other teams. The player’s original team has the right of first refusal to match any offer given to a transition-tagged player by another team. If the original team decides to retain the player, it must agree to the contract terms offered by the other team. If the original team decides not to match the offer and the player leaves, it receives nothing in compensation.
