The NFL transition tag is one of the league’s lesser-used free agency tools, but it can play a critical role during the offseason. While it doesn’t get as much attention as the franchise tag, it still gives teams leverage when trying to retain key players.
Here’s everything you need to know about how the NFL transition tag works, how much it costs, and how it differs from the franchise tag.
What Is the NFL Transition Tag?
An NFL transition tag is a designation a team can place on one of its pending unrestricted free agents before the start of free agency.
When a player receives the transition tag:
- He is allowed to negotiate with other teams
- He can sign an offer sheet with another franchise
- His original team has the right of first refusal, meaning they can match any contract offer and keep him
If the original team declines to match the offer, the player joins the new team.
However — and this is important — the original team receives no draft pick compensation if they choose not to match.
How Much Is the Transition Tag Worth?
The transition tag salary is calculated as:
- The average of the top 10 salaries at the player’s position for the current league year, OR
- 120% of the player’s previous salary
Whichever number is greater.
This makes the transition tag cheaper than the franchise tag, which is based on the average of the top five salaries at the position.
Because it is less expensive, it gives teams financial flexibility — but it also comes with more risk.
Transition Tag vs. Franchise Tag: What’s the Difference?
Here’s a clear breakdown:
Transition Tag
- Player can negotiate with other teams
- Original team can match any offer
- No draft pick compensation if team declines to match
- Based on top 10 positional salaries
Franchise Tag
- Player can negotiate (non-exclusive tag)
- Original team can match any offer
- If not matched, original team receives two first-round draft picks
- Based on top five positional salaries
The franchise tag offers stronger protection. The transition tag offers flexibility but less security.
Why Don’t Teams Use the Transition Tag Often?
The transition tag is rarely used because:
- There is no compensation if the player leaves
- Other teams can structure contracts in ways that are difficult to match
- It can strain team cap flexibility if forced to match a large offer
Teams typically use it when:
- They want to gauge the player’s market value
- They believe the market may not be aggressive
- They want a lower-cost alternative to the franchise tag
Example Scenario
Imagine the Miami Dolphins place a transition tag on a wide receiver entering free agency.
If the New England Patriots offer that player a four-year contract worth $100 million:
- Miami can match the offer and keep him
- If Miami declines, the player signs with New England
- Miami receives no draft picks in return
That’s the core risk of the transition tag.
Final Thoughts
The NFL transition tag is a strategic tool that allows teams to retain control over a player’s free agency — but without the strong compensation protection of the franchise tag.
It’s cheaper, flexible, and market-driven — but it can backfire if another team presents an offer that’s too large to match.
As free agency approaches each offseason, understanding the transition tag helps fans better interpret front-office decisions and contract negotiations across the league.