<P> In the National Football League (NFL), the franchise tag is a designation a team may apply to a player scheduled to become an unrestricted free agent . The tag binds the player to the team for one year if certain conditions are met . Each team only has one franchise tag (of either the exclusive or non-exclusive forms) and one transition tag per year . The transition tag can only be used if the team does not use a franchise tag . </P> <P> Perhaps originally designed to reduce player movement to bigger markets, which is often evidenced in the other major pro sports leagues, the NFL revenue sharing and a hard salary cap have placed teams on an even playing field relative to salaries . The tag options allow NFL franchises an extended bargaining period for a player that they feel is key to their success . Usually reserved for players of great skill or of high importance to the team, a franchise tag allows a team's general manager the privilege of strategically retaining valuable free - agent players while seeking talent through the NFL draft or other acquisitions without exceeding the League's salary cap . </P> <P> The designated franchise player will have his one - year salary guaranteed if he elects to play for the team that designated him with the franchise tag and if he does not negotiate a contract with another team . </P>

Does the franchise tag count against the salary cap