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Non-exclusive franchise tag:

This is the most common use of the tag. It results in a one-year guaranteed contract offer from the club to the player for a set amount based on position.

In the past that amount was calculated by averaging the salaries of the five highest paid players at that position the previous season. Under the 2011 CBA it became slightly more complex. Now, the non-exclusive tag is calculated by adding the franchise tag cost together from the five previous seasons and dividing it by the sum of the salary caps from the five previous seasons to get a percentage-of-cap number that is then multiplied by that year’s cap.

Actually, the non-exclusive franchise tag is worth either that number, or 120% of the player’s salary from the year before, whichever is greater.

The long story short is that these are generally pricey one-year deals.

Players who receive the designation can sign their franchise tenders right away or shop for another team to try and get an offer sheet. If another team signs a franchise player to an offer sheet, the original team has a chance to match it. But if the original team doesn’t match the offer, the new team must give up two first-round picks as compensation in order to steal the franchise player away.

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