Is the NFL's franchise tag fair to players?

TL;DR

This paper systematically examines the fairness of the NFL franchise tag to players, revealing biases and proposing reforms to improve contractual fairness and flexibility.

Contribution

It provides the first systematic analysis of franchise tag fairness and proposes a novel policy solution to enhance player rights.

Findings

Franchise tags are biased against players in contract extensions.

Current system favors teams over players in contractual negotiations.

Proposed reforms increase player flexibility and fairness.

Abstract

There has been a consistent criticism over the past decade of the NFL franchise tag's monetary limitations due to its biased institutions in favor of the team rather than the player. But the question whether the NFL's franchise tag is fair or unfair to players has never been systematically studied. In this paper, I investigate the effects of NFL players' contract extensions when on a franchise tag compared to when they are not and analyze them through statistical and economic lens. Through my research, I find that indeed the current franchise tag designation is unfair to players when it comes to contract extension. I then propose a solution to remedy this unfairness, that is, removing the opportunity to franchise tag players for multiple years, and adding an option for the player to either test free agency but receive zero pay until they settle on a contract (the team can also match the offer) or sign the franchise tag, to provide more flexibility for the player and the team.