Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: September 3, 2015
The Firm
201-896-4100 info@sh-law.comThe franchise tag is a designation used by teams to navigate the salary cap. The tag isn’t particularly well-liked by players.
The contractual devices allow teams to keep unrestricted free agents with them for an additional year, which can prove useful for managers and coaches trying to work around salary cap restrictions and other financial roadblocks on the path to building a competitive team. Clubs are only allowed to tag one player per year. The designation provides the tagged individual with a guaranteed contract with a salary similar to the pay of the top five players in the league at the same position. Players offered the franchise tender have until July 15 to work out long-term deals with their teams.
For example, a franchise tag placed on New York Giants quarterback, Eli Manning – who is negotiating with his team right now, but may not be tagged due to situations with other players – would guarantee him a contract with a salary range similar to those earned by peers such as Tom Brady and Aaron Rodgers. The Washington Post calculated the probable salaries for a number of positions when a player receives the franchise tag.
However, players typically don’t take kindly to the franchise tag. USA Today’s For The Win blog noted that the franchise tag is often despised because players don’t believe that the resultant contracts pay them what they deserve. When Aaron Rodgers signed his latest contract, worth $110 million, in 2013, it made him the highest-paid player in the NFL with an average annual salary of $22 million, according to Spotrac. That’s nearly $4 million higher than what a quarterback who signed a franchise tender this offseason would earn. Additionally, franchise tags don’t offer players much long-term security. The contracts that come with them are only guaranteed for a year, after which the tagged individual will find himself once again without an agreement between him and his team.
The tag has been in use since 1993, the Washington Post reported. While its popularity has waned in recent years, teams still use it when they find themselves backed into a corner during negotiations. For example, New York Giants defensive end Jason Pierre-Paul was one of six players offered a franchise tag this season, though he has yet to sign his due to the highly unusual situation that came out of a fireworks incident on July 4. The uncertainty could affect the team’s decision to offer Manning a franchise tender or not.
Other players offered franchise tenders this offseason include Kansas City Chiefs linebacker Justin Houston, Dallas Cowboys receiver Dez Bryant and Denver Broncos receiver Demaryius Thomas, according to ESPN. These players were all able to beat the July 15 deadline to work out a long-term agreement.
When Bryant was franchised earlier in the offseason, he was not pleased, and even threatened to skip regular season games if he couldn’t work out a long-term contract with his team, according to CBS. When a fan tweeted his appreciation for Bryant’s dedication to his team – prior to the Cowboys offering him a franchise tender – he responded “I wish they felt the same way but it’s cool.”
The Washington Post explained that there are exclusive and non-exclusive franchise tags. The former disallows the player from negotiating with any other teams. The latter grants him permission to work out a deal with another organization. If one is reached, and he signs with the new team, then his former team would receive two first-round draft picks.
There is also the less common transition tag, according to the news outlet. This guarantees a contract with a salary that is equal to the average of the top 10 salaries at the player’s position or 120 percent of the value of his 2014 salary – whichever amount is higher. Players with a transition tag are allowed to negotiate with other teams, and if they reach a deal their former club does not receive any draft picks.
While players aren’t always the biggest fans of franchise tags, they can allow them and their teams to push contract negotiations to the following offseason, when the cap situation may be more favorable to working out a long-term contract that pays the individual what he and his club believe he deserves.
If you’re concerned about being offered a franchise tender, contact an attorney with knowledge of sports law or NFL agent who can help you work out a satisfactory deal.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman

The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
Author: Jay McDaniel

The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Author: Paul Grossman

New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Author: Sean M. Pena

No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Author: Donald M. Pepe

A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
Author: Jay McDaniel
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!