Transition Tag
Encyclopedia
A transition tag is a tool used by National Football League
teams to retain unrestricted free agents. It guarantees the original club the right of first refusal
to match any offer the player may make with another team. The transition tag can be used once a year by each club unless they elect to use a franchise tag
instead. Transition tags can be rescinded; however, teams that rescind a transition tag cannot use it again until the next season.
If a player signs a contract after receiving the transition tag, his original team can not use the tag again on any player until the contract has expired. The exception is if the player first signs a transition offer sheet, which is a one-year contract equal to the average salary of the top ten players in the league at the player's position, or a twenty percent salary increase, whichever is greater. This contract was not historically guaranteed; however, it became guaranteed starting in 2007 per the collective bargaining agreement agreed to by the NFL owners and the NFLPA on March 8, 2006. If the player signs the offer sheet prior to a long-term contract, the player's team can then use the tag the next year.
If another club offers a contract to a transitioned player, his original club has seven days to decide whether to match that offer or not. If the original club agrees to match, the player is forced to sign with the original club at the terms agreed to in the offer by the other club. If the original club declines to match, the player signs with the other team, and the original team is offered no compensation, as they would be if the player had received the franchise tag.
. The other is that players often react badly to receiving the tag, because it limits their ability to negotiate with other teams and therefore hinders their chances of receiving the largest possible contract. Players sometimes counter the tag by holding out or refusing to play for the club, creating distractions and headaches for the club.
The transition tag is currently at the center of a controversy regarding its potential usefulness in light of the contract offered by the Minnesota Vikings
to Steve Hutchinson, an offensive guard
who had received the transition tag following the 2005 season from the Seattle Seahawks
. The contract was for $49 million over seven years, $16 million of which was guaranteed. However, the Vikings added a "poison pill
": The entire $49 million contract was guaranteed if Hutchinson were not the highest paid offensive linemen on the team he signed with. Since Hutchinson's salary was less than that of the Seahawks' Walter Jones, an offensive tackle, his contract would have been guaranteed by the Seahawks, while the Vikings, having no offensive linemen averaging more than Hutchinson's proposed salary, would only be obligated to pay the guaranteed $16 million. The Seahawks filed a grievance with the NFL league office, claiming that the poison pill was illegal under the collective bargaining agreement in that the Seahawks would have to pay significantly more than the Vikings despite matching with exactly the same contract. An arbitrator ruled in favor of the Vikings, and the Seahawks were essentially unable to match and received no compensation.
In an act of apparent revenge, the Seattle Seahawks
included their own "poison pills" when signing restricted free agent
wide receiver
Nate Burleson
. The total contract was seven years and $49 million - not coincidentally the exact amount of the contract Hutchinson received from the Vikings. The first poison pill stipulated that the entire contract would be guaranteed if Burleson played five or more games in the state of Minnesota
during any year of the contract. This of course would be impossible as a member of the Seahawks, but an inevitability as a member of the Vikings, who play their home games in the Hubert H. Humphrey Metrodome
in Minnesota. The second provision would guarantee the full contract if Burleson is paid more on average per year than all of his team's running backs combined. At the time of his signing, the averages of the Vikings' tailbacks fell well shy of the $7 million average of the Burleson offer sheet. However in Seattle, running back Shaun Alexander
alone made an average of over $7 million per year.
Future uses of the transition tag could result in the club losing their transitioned player in similar fashion, rendering the transition tag effectively useless. This has caused some, including former NFL commissioner
Paul Tagliabue
, to believe the collective bargaining agreement must be amended to prevent this from happening again in the future.
- Steve Hutchinson G (Signed with Minnesota Vikings
)
National Football League
The National Football League is the highest level of professional American football in the United States, and is considered the top professional American football league in the world. It was formed by eleven teams in 1920 as the American Professional Football Association, with the league changing...
teams to retain unrestricted free agents. It guarantees the original club the right of first refusal
Right of first refusal
Right of first refusal is a contractual right that gives its holder the option to enter a business transaction with the owner of something, according to specified terms, before the owner is entitled to enter into that transaction with a third party...
to match any offer the player may make with another team. The transition tag can be used once a year by each club unless they elect to use a franchise tag
Franchise Tag
In the National Football League, 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 has access each year to only one franchise tag and one...
instead. Transition tags can be rescinded; however, teams that rescind a transition tag cannot use it again until the next season.
If a player signs a contract after receiving the transition tag, his original team can not use the tag again on any player until the contract has expired. The exception is if the player first signs a transition offer sheet, which is a one-year contract equal to the average salary of the top ten players in the league at the player's position, or a twenty percent salary increase, whichever is greater. This contract was not historically guaranteed; however, it became guaranteed starting in 2007 per the collective bargaining agreement agreed to by the NFL owners and the NFLPA on March 8, 2006. If the player signs the offer sheet prior to a long-term contract, the player's team can then use the tag the next year.
If another club offers a contract to a transitioned player, his original club has seven days to decide whether to match that offer or not. If the original club agrees to match, the player is forced to sign with the original club at the terms agreed to in the offer by the other club. If the original club declines to match, the player signs with the other team, and the original team is offered no compensation, as they would be if the player had received the franchise tag.
History
The transition tag was born in 1993, following the advent of free agency in the NFL. Teams were afraid of losing their best players to free agency, which was not a concern previously. The NFL granted each team two transition tags, each of which they could only use once and never again. The system has been since changed to allow each team to use a transition tag each year it is available to them.Disadvantages
The transition tag is rarely used by NFL franchises. There are two reasons for this. The first is that the one-year transition offer is typically a large amount, which could provide the club with difficulties while attempting to keep the team's aggregate salaries under the salary capSalary cap
In professional sports, a salary cap is a cartel agreement between teams that places a limit on the amount of money that can be spent on player salaries. The limit exists as a per-player limit or a total limit for the team's roster, or both...
. The other is that players often react badly to receiving the tag, because it limits their ability to negotiate with other teams and therefore hinders their chances of receiving the largest possible contract. Players sometimes counter the tag by holding out or refusing to play for the club, creating distractions and headaches for the club.
"Poison Pills"
The advent of the poison pill was first introduced to the public by 49ers President Carmen Policy in 1996. The 49ers intended to sign Giants running back Rodney Hampton to an offer sheet with a poison pill that stated Hampton would be "on the field for 70% of the offensive plays over the next 2 seasons." The Giants had drafted Tyrone Wheatley with their first round pick in 1995 but he was largely ineffective in his first season. Since he played the same position as Hampton, the Giants had planned to ease him into the offense with Hampton on the back end of his career. For the Giants to match the 6 year deal, they would be forced to play Hampton in 70% of the plays, thus making the previous year's draft pick of Wheatley a loss. The 49ers later decided to not include the clause, as they felt the NFL would never approve the terms. Their assumption would be proven incorrect following the 2005 season, with the historic offer sheet Steve Hutchinson signed with the Minnesota Vikings.The transition tag is currently at the center of a controversy regarding its potential usefulness in light of the contract offered by the Minnesota Vikings
Minnesota Vikings
The Minnesota Vikings are a professional American football team based in Minneapolis, Minnesota. The Vikings joined the National Football League as an expansion team in 1960...
to Steve Hutchinson, an offensive guard
Guard (American football)
In American and Canadian football, a guard is a player that lines up between the center and the tackles on the offensive line of a football team....
who had received the transition tag following the 2005 season from the Seattle Seahawks
Seattle Seahawks
The Seattle Seahawks are a professional American football team based in Seattle, Washington. They are currently members of the Western Division of the National Football Conference in the National Football League . The team joined the NFL in 1976 as an expansion team...
. The contract was for $49 million over seven years, $16 million of which was guaranteed. However, the Vikings added a "poison pill
Poison pill
A shareholder rights plan, colloquially known as a "poison pill", or simply "the pill" is a type of defensive tactic used by a corporation's board of directors against a takeover...
": The entire $49 million contract was guaranteed if Hutchinson were not the highest paid offensive linemen on the team he signed with. Since Hutchinson's salary was less than that of the Seahawks' Walter Jones, an offensive tackle, his contract would have been guaranteed by the Seahawks, while the Vikings, having no offensive linemen averaging more than Hutchinson's proposed salary, would only be obligated to pay the guaranteed $16 million. The Seahawks filed a grievance with the NFL league office, claiming that the poison pill was illegal under the collective bargaining agreement in that the Seahawks would have to pay significantly more than the Vikings despite matching with exactly the same contract. An arbitrator ruled in favor of the Vikings, and the Seahawks were essentially unable to match and received no compensation.
In an act of apparent revenge, the Seattle Seahawks
Seattle Seahawks
The Seattle Seahawks are a professional American football team based in Seattle, Washington. They are currently members of the Western Division of the National Football Conference in the National Football League . The team joined the NFL in 1976 as an expansion team...
included their own "poison pills" when signing restricted free agent
Restricted free agent
A restricted free agent is a professional athlete who plays in the KHL, NFL, NHL, or NBA. Such players have special restrictions on the terms under which they can retain or change employment status with their athletic club teams.- NFL :...
wide receiver
Wide receiver
A wide receiver is an offensive position in American and Canadian football, and is the key player in most of the passing plays. Only players in the backfield or the ends on the line are eligible to catch a forward pass. The two players who begin play at the ends of the offensive line are eligible...
Nate Burleson
Nate Burleson
Nathaniel Burleson is an American football player, who currently plays wide receiver for the Detroit Lions of the National Football League . Burleson played college football for the University of Nevada Wolf Pack, and was drafted by the Minnesota Vikings in the third round of the 2003 NFL...
. The total contract was seven years and $49 million - not coincidentally the exact amount of the contract Hutchinson received from the Vikings. The first poison pill stipulated that the entire contract would be guaranteed if Burleson played five or more games in the state of Minnesota
Minnesota
Minnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state...
during any year of the contract. This of course would be impossible as a member of the Seahawks, but an inevitability as a member of the Vikings, who play their home games in the Hubert H. Humphrey Metrodome
Hubert H. Humphrey Metrodome
The Hubert H. Humphrey Metrodome, commonly called the Metrodome, is a domed sports stadium in downtown Minneapolis, Minnesota, United States. Opened in 1982, it replaced Metropolitan Stadium, which was on the current site of the Mall of America in Bloomington and Memorial Stadium on the University...
in Minnesota. The second provision would guarantee the full contract if Burleson is paid more on average per year than all of his team's running backs combined. At the time of his signing, the averages of the Vikings' tailbacks fell well shy of the $7 million average of the Burleson offer sheet. However in Seattle, running back Shaun Alexander
Shaun Alexander
Shaun Edward Alexander is a former American football running back who played for the Seattle Seahawks and the Washington Redskins. He was drafted by the Seahawks 19th overall in the 2000 NFL Draft. He played college football at the University of Alabama.- Early career :Alexander was born and...
alone made an average of over $7 million per year.
Future uses of the transition tag could result in the club losing their transitioned player in similar fashion, rendering the transition tag effectively useless. This has caused some, including former NFL commissioner
Commissioner
Commissioner is in principle the title given to a member of a commission or to an individual who has been given a commission ....
Paul Tagliabue
Paul Tagliabue
Paul John Tagliabue is a former Commissioner of the National Football League. He took the position in 1989 and was succeeded by Roger Goodell, who was elected to the position on August 8, 2006. Tagliabue's retirement took effect on September 1, 2006. He had previously served as a lawyer for the NFL...
, to believe the collective bargaining agreement must be amended to prevent this from happening again in the future.
2009 Transition Player Costs by Position
| Position | Cost |
|---|---|
| Quarterback Quarterback Quarterback is a position in American and Canadian football. Quarterbacks are members of the offensive team and line up directly behind the offensive line... |
$12,440,000 |
| Offensive Linemen (includes Offensive Tackle, Offensive Guard, Center Center (American football) Center is a position in American football and Canadian football . The center is the innermost lineman of the offensive line on a football team's offense... ) |
$7,744,000 |
| Wide Receiver Wide receiver A wide receiver is an offensive position in American and Canadian football, and is the key player in most of the passing plays. Only players in the backfield or the ends on the line are eligible to catch a forward pass. The two players who begin play at the ends of the offensive line are eligible... |
$8,393,000 |
| Running Back Running back A running back is a gridiron football position, who is typically lined up in the offensive backfield. The primary roles of a running back are to receive handoffs from the quarterback for a rushing play, to catch passes from out of the backfield, and to block.There are usually one or two running... (includes all Fullbacks Fullback (American football) A fullback is a position in the offensive backfield in American and Canadian football, and is one of the two running back positions along with the halfback... and Halfbacks H-back An H-Back is an offensive position in American football, and is also known as power back. The position is a hybrid of a fullback and a tight end. The position was made notable in the NFL by the Washington Redskins under head coach Joe Gibbs who ran a two tight end system... ) |
$5,925,000 |
| Tight end Tight end The tight end is a position in American football on the offense. The tight end is often seen as a hybrid position with the characteristics and roles of both an offensive lineman and a wide receiver. Like offensive linemen, they are usually lined up on the offensive line and are large enough to be... |
$4,065,000 |
| Defensive End Defensive end Defensive end is the name of a defensive position in the sport of American and Canadian football.This position has designated the players at each end of the defensive line, but changes in formations have substantially changed how the position is played over the years... |
$7,777,000 |
| Defensive Tackle | $5,450,000 |
| Linebacker Linebacker A linebacker is a position in American football that was invented by football coach Fielding H. Yost of the University of Michigan. Linebackers are members of the defensive team, and line up approximately three to five yards behind the line of scrimmage, behind the defensive linemen... |
$7,480,000 |
| Cornerback Cornerback A cornerback is a member of the defensive backfield or secondary in American and Canadian football. Cornerbacks cover receivers, to defend against pass offenses and make tackles. Other members of the defensive backfield include the safeties and occasionally linebackers. The cornerback position... |
$8,374,000 |
| Safety | $5,130,000 |
| Kicker Placekicker Placekicker, or simply kicker , is the title of the player in American and Canadian football who is responsible for the kicking duties of field goals, extra points... or Punter |
$2,264,000 |
2008 Transition Player Costs by Position
| Position | Cost |
|---|---|
| Quarterback Quarterback Quarterback is a position in American and Canadian football. Quarterbacks are members of the offensive team and line up directly behind the offensive line... |
$9,560,000 |
| Offensive Linemen (includes Offensive Tackle, Offensive Guard, Center Center (American football) Center is a position in American football and Canadian football . The center is the innermost lineman of the offensive line on a football team's offense... ) |
$6,895,000 |
| Wide Receiver Wide receiver A wide receiver is an offensive position in American and Canadian football, and is the key player in most of the passing plays. Only players in the backfield or the ends on the line are eligible to catch a forward pass. The two players who begin play at the ends of the offensive line are eligible... |
$6,872,000 |
| Running Back Running back A running back is a gridiron football position, who is typically lined up in the offensive backfield. The primary roles of a running back are to receive handoffs from the quarterback for a rushing play, to catch passes from out of the backfield, and to block.There are usually one or two running... (includes all Fullbacks Fullback (American football) A fullback is a position in the offensive backfield in American and Canadian football, and is one of the two running back positions along with the halfback... and Halfbacks H-back An H-Back is an offensive position in American football, and is also known as power back. The position is a hybrid of a fullback and a tight end. The position was made notable in the NFL by the Washington Redskins under head coach Joe Gibbs who ran a two tight end system... ) |
$5,699,000 |
| Tight end Tight end The tight end is a position in American football on the offense. The tight end is often seen as a hybrid position with the characteristics and roles of both an offensive lineman and a wide receiver. Like offensive linemen, they are usually lined up on the offensive line and are large enough to be... |
$3,733,000 |
| Defensive End Defensive end Defensive end is the name of a defensive position in the sport of American and Canadian football.This position has designated the players at each end of the defensive line, but changes in formations have substantially changed how the position is played over the years... |
$7,679,000 |
| Defensive Tackle | $5,654,000 |
| Linebacker Linebacker A linebacker is a position in American football that was invented by football coach Fielding H. Yost of the University of Michigan. Linebackers are members of the defensive team, and line up approximately three to five yards behind the line of scrimmage, behind the defensive linemen... |
$7,335,000 |
| Cornerback Cornerback A cornerback is a member of the defensive backfield or secondary in American and Canadian football. Cornerbacks cover receivers, to defend against pass offenses and make tackles. Other members of the defensive backfield include the safeties and occasionally linebackers. The cornerback position... |
$7,659,000 |
| Safety | $3,893,000 |
| Kicker Placekicker Placekicker, or simply kicker , is the title of the player in American and Canadian football who is responsible for the kicking duties of field goals, extra points... or Punter |
$2,245,000 |
2007 Transition Player Costs by Position
| Position | Cost |
|---|---|
| Quarterback Quarterback Quarterback is a position in American and Canadian football. Quarterbacks are members of the offensive team and line up directly behind the offensive line... |
$10,182,000 |
| Offensive Linemen (includes Offensive Tackle, Offensive Guard, Center Center (American football) Center is a position in American football and Canadian football . The center is the innermost lineman of the offensive line on a football team's offense... ) |
$8,267,000 |
| Wide Receiver Wide receiver A wide receiver is an offensive position in American and Canadian football, and is the key player in most of the passing plays. Only players in the backfield or the ends on the line are eligible to catch a forward pass. The two players who begin play at the ends of the offensive line are eligible... |
$7,612,000 |
| Running Back Running back A running back is a gridiron football position, who is typically lined up in the offensive backfield. The primary roles of a running back are to receive handoffs from the quarterback for a rushing play, to catch passes from out of the backfield, and to block.There are usually one or two running... (includes all Fullbacks Fullback (American football) A fullback is a position in the offensive backfield in American and Canadian football, and is one of the two running back positions along with the halfback... and Halfbacks H-back An H-Back is an offensive position in American football, and is also known as power back. The position is a hybrid of a fullback and a tight end. The position was made notable in the NFL by the Washington Redskins under head coach Joe Gibbs who ran a two tight end system... ) |
$5,981,000 |
| Tight end Tight end The tight end is a position in American football on the offense. The tight end is often seen as a hybrid position with the characteristics and roles of both an offensive lineman and a wide receiver. Like offensive linemen, they are usually lined up on the offensive line and are large enough to be... |
$3,612,000 |
| Defensive End Defensive end Defensive end is the name of a defensive position in the sport of American and Canadian football.This position has designated the players at each end of the defensive line, but changes in formations have substantially changed how the position is played over the years... |
$7,701,000 |
| Defensive Tackle | $5,554,000 |
| Linebacker Linebacker A linebacker is a position in American football that was invented by football coach Fielding H. Yost of the University of Michigan. Linebackers are members of the defensive team, and line up approximately three to five yards behind the line of scrimmage, behind the defensive linemen... |
$6,493,000 |
| Cornerback Cornerback A cornerback is a member of the defensive backfield or secondary in American and Canadian football. Cornerbacks cover receivers, to defend against pass offenses and make tackles. Other members of the defensive backfield include the safeties and occasionally linebackers. The cornerback position... |
$6,766,000 |
| Safety | $3,984,000 |
| Kicker Placekicker Placekicker, or simply kicker , is the title of the player in American and Canadian football who is responsible for the kicking duties of field goals, extra points... or Punter |
$1,926,000 |
2006 Transition Player Costs by Position
| Position | Cost |
|---|---|
| Quarterback Quarterback Quarterback is a position in American and Canadian football. Quarterbacks are members of the offensive team and line up directly behind the offensive line... |
$8,327,000 |
| Offensive Linemen (includes Offensive Tackle, Offensive Guard, Center Center (American football) Center is a position in American football and Canadian football . The center is the innermost lineman of the offensive line on a football team's offense... ) |
$6,391,000 |
| Wide Receiver Wide receiver A wide receiver is an offensive position in American and Canadian football, and is the key player in most of the passing plays. Only players in the backfield or the ends on the line are eligible to catch a forward pass. The two players who begin play at the ends of the offensive line are eligible... |
$5,160,000 |
| Running Back Running back A running back is a gridiron football position, who is typically lined up in the offensive backfield. The primary roles of a running back are to receive handoffs from the quarterback for a rushing play, to catch passes from out of the backfield, and to block.There are usually one or two running... (includes all Fullbacks Fullback (American football) A fullback is a position in the offensive backfield in American and Canadian football, and is one of the two running back positions along with the halfback... and Halfbacks H-back An H-Back is an offensive position in American football, and is also known as power back. The position is a hybrid of a fullback and a tight end. The position was made notable in the NFL by the Washington Redskins under head coach Joe Gibbs who ran a two tight end system... ) |
$5,153,000 |
| Tight end Tight end The tight end is a position in American football on the offense. The tight end is often seen as a hybrid position with the characteristics and roles of both an offensive lineman and a wide receiver. Like offensive linemen, they are usually lined up on the offensive line and are large enough to be... |
$2,718,000 |
| Defensive End Defensive end Defensive end is the name of a defensive position in the sport of American and Canadian football.This position has designated the players at each end of the defensive line, but changes in formations have substantially changed how the position is played over the years... |
$7,075,000 |
| Defensive Tackle | $4,463,000 |
| Linebacker Linebacker A linebacker is a position in American football that was invented by football coach Fielding H. Yost of the University of Michigan. Linebackers are members of the defensive team, and line up approximately three to five yards behind the line of scrimmage, behind the defensive linemen... |
$6,144,000 |
| Cornerback Cornerback A cornerback is a member of the defensive backfield or secondary in American and Canadian football. Cornerbacks cover receivers, to defend against pass offenses and make tackles. Other members of the defensive backfield include the safeties and occasionally linebackers. The cornerback position... |
$4,744,000 |
| Safety | $3,592,000 |
| Kicker Placekicker Placekicker, or simply kicker , is the title of the player in American and Canadian football who is responsible for the kicking duties of field goals, extra points... or Punter |
$2,045,000 |
2006 Transition Players
Seattle SeahawksSeattle Seahawks
The Seattle Seahawks are a professional American football team based in Seattle, Washington. They are currently members of the Western Division of the National Football Conference in the National Football League . The team joined the NFL in 1976 as an expansion team...
- Steve Hutchinson G (Signed with Minnesota Vikings
Minnesota Vikings
The Minnesota Vikings are a professional American football team based in Minneapolis, Minnesota. The Vikings joined the National Football League as an expansion team in 1960...
)