What defines the value of a non-exclusive tag?

The value of a non-exclusive franchise tag is defined by the average of the top five salaries at that position over the last five years. This valuation method is designed to give the player a significant earning potential while allowing the team some flexibility. The franchise tag is used to retain a player's rights while compensating them based on the market value for their position, thus ensuring that players receive a level of salary that reflects the highest salaries earned by their peers.

The average of the top five salaries reflects a commitment by the team to compensate the player fairly while also providing an incentive for negotiation in the event that the player and team want to establish a long-term contract. This approach balances player interests with team salary cap considerations, allowing teams to manage their budgets effectively while still retaining key talent on their roster.

In contrast to this, the other options do not accurately reflect the current rules regarding franchise tag valuations and do not provide the same level of compensation based on the market norms established for the position. This understanding is crucial for those involved in NFL contracting and player representation, guiding negotiations and decision-making processes.