What happens when a player is franchise tagged for the third time?

When a player is franchise tagged for the third time, they receive the average of the top five salaries at their position, or 120% of their previous year's salary, whichever is greater. This mechanism is designed to balance the team's ability to retain a player with the player's earning potential. The rationale behind this rule is to ensure that a player who has been franchise tagged multiple times is compensated at a level reflective of their position's market value, recognizing their performance and the team's reliance on their services.

This approach provides financial security to the player while also allowing the team to maintain flexibility in roster management. The other options do not accurately reflect the specifics of how salary determinations are made under franchise tagging rules. In particular, options suggesting contract lengths or a flat salary amount do not apply once a player has been tagged multiple times.