What is a transition tag in the NFL? Differences from the franchise tag, how roster move works and more

JUMP TO: 

• What is a transition tag in the NFL?
• How NFL transition tag works
• Benefits of using transition tag
• Risks of using transition tag
• Transition tag vs. franchise tag
• Different tags in NFL

As the NFL offseason ramps up as free agency approaches each year, a mostly unfamiliar term can pop up from time to time — the "transition tag".

Daniel Jones became the latest player to receive the transition tag, which is different from the franchise tag, as the Indianapolis Colts utilized the roster maneuver. Jones tore his Achilles in Week 14 of the 2025 season, so Indianapolis was hesitant to throw him a long-term contract before seeing him play this upcoming season.

Terms of the transition tag differ from a standard franchise tag in terms of monetary amount, compensation level and team negotiation power.

Here's what you need to know about what a transition tag is and what it means for its recipients.

MORE: What to know about the franchise tag

What is a transition tag in the NFL?

The transition tag is a one-year contract offer that allows a team to retain a player who may test the waters as an unrestricted free agent. Teams are allowed to use the transition tag on one unrestricted free agent per offseason. While the transition-tagged player is allowed to negotiate with other teams, their original team has the opportunity to match any offer sheet the player signs elsewhere.

Essentially, if the tagged player's original team thinks their player is receiving a higher-than-desired amount of money in the open market, they aren't required to match it; the original team just has the option to do so before their player accepts the other team's offer. 

Indianapolis Colts QB Daniel Jones recently became the latest recipient of this form of tag.

In the league's history, only 15 NFL players have received a transition tag. Here is the complete list:

MORE: Inside the NFL's personal conduct policy

How NFL transition tag works

NFL transition tags follow specific rules that differ from the traditional franchise tag.

For a transition tag, a player is offered a one-year deal worth an average of the top-10 salaries of their position from the previous five years. If the player's previous salary is higher than this, they receive 120% of their former salary.

The player is still able to negotiate contracts and sign an offer sheet with other teams. If a transition-tagged player were to sign a new team's offer sheet, their original team has seven days to match those terms.

If the original team matches the offer, the player will remain on said team. If not, the original team loses that player and receives no compensation in return.

MORE: How does the NFL concussion protocol work?

Do transition tag players get long term contracts?

Transition-tagged players are looking to receive a long-term contract eventually. Even if their original team is not the one to give the player their desired deal, other teams are able to. 

Teams and players can continue to negotiate a long-term extension until the NFL's mid-July deadline.

Benefits of using the transition tag

One of the main benefits of using a transition tag is that it is cheaper than franchise tagging a player. Transition tags use an average of the top-10 salaries in that position, versus a franchise tag that uses a top-five average.  

Teams are also equipped with the luxury of having a final say by having the ability to match another team's offer before losing their player. 

By using an open market, teams are relieved of the duty of solely determining a player's value and risk of overpaying themselves. If a player's demand isn't as present in the open market, teams are able to use this as negotiating power for a lower contract.

MORE: Why does the NFL use ties?

Risks of using the transition tag

The main risk of a team using the transition tag is that if they if their player leaves via a transition tag, the team gets no draft picks in return compared to a player that has signed the franchise tag.

Teammates of the transition-tagged player may not view this move very amicably. Players have traditionally viewed the tag as a way to suppress a player's true value. In extreme cases, players may hold out in the future.

In the case of a transition tagged player, the money given to a player is even less than the franchise tag's amount. This could cause a player to be less inclined to return to the team that transition tagged them.

MORE: Most valuable franchises in the NFL

Transition tag vs. franchise tag: Key differences

Transition tags give original teams the power of being able to accept or deny the open market's evaluation of their player. The original team can either accept or pass on their player's new deal. 

If a non-exclusive franchise tagged player's offer sheet is not matched, then the original team receives two first-round picks as compensation.

If an offer sheet of a non-exclusive transition tagged player is not matched, then the original team gets no draft compensation in return.

And as noted earlier, the different tags come with different salaries. The transition tag is an average of the top-10 salaries at a given position, while the franchise tag is top-5.

Different tags in NFL

There are three different tags a player can be subject to in the NFL:

• Non-Exclusive Franchise Tag: This is the most common form of tag. This tag is priced at the average of the five largest prior year salaries for players at a given position. A non-exclusive franchise tag allows the player to negotiate a deal with other teams. However, if the original team doesn't match an offer, they receive two 1st-round picks.

• Exclusive Franchise Tag: For this tag, players are unable to negotiate with other teams. This tag's salary is based on the current year's market, not the previous year's.

• Transition Tag: The transition tag averages out to a lower salary for the player as it is a top-10 average versus a top-5. Teams have the right to match another team's deal given to their tagged player, but receive no compensation if the player leaves.

MORE: Jerry Jones timeline of contract disputes