KC Chiefs QB agrees to largest contract in NFL history
Kansas City Chiefs quarterback Patrick Mahomes agrees to a 10-year extension, which will be the largest contract in NFL history.
The NFL’s franchise tag is a valuable tool to front offices that face the prospect of losing star players to unrestricted free agency.
Continue Reading Below
Each offseason, the league’s 32 teams have the right to apply either a franchise tag or the transition tag to one player. If the franchise tag is enacted, the transition tag cannot be used.
TOM BRADY, FLOYD MAYWEATHER BUSINESSES RECEIVED PPP LOANS
The franchise tag functions as a one-year contract extension and has two versions – exclusive and nonexclusive.
Under a nonexclusive tag, player pay is determined by the average of the top five salaries at the player’s position over the previous five years, or 120 percent of the player’s previous salary, whichever is higher. Teams have the right to match any offer made to the player by other franchises and can receive two first-round picks as compensation if the player signs elsewhere.
PATRICK MAHOMES' RECORD $503M CONTRACT DETAILS REVEALED
Under an exclusive tag, players can’t negotiate with any other team. Pay is determined as an average of the top five salaries in the current season, which generally costs more than the nonexclusive tag.
The transition tag functions in a similar manner to the franchise tag. Players who receive the transition tag are paid based on the average of the top 10 salaries at their position over the last five years. In addition, the team has the right to match any offer the player receives from any other franchise.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Dallas Cowboys quarterback Dak Prescott signed an exclusive franchise tag this offseason after talks on a long-term extension failed to yield an agreement. Prescott will receive $31.4 million for the 2020 season.
Teams and players who receive the franchise or transition tag can continue to work on a long-term contract extension. The deadline to finalize an agreement is July 15. Otherwise, the tag remains in place for the season.
CLICK HERE FOR MORE SPORTS COVERAGE ON FOXBUSINESS.COM
Source: Read Full Article