What is the salary structure for a player who is franchise tagged twice?

When a player is franchise tagged multiple times, the salary they receive is typically determined by a specific formula within the collective bargaining agreement. The correct answer reflects that the player will earn the average of the top five salaries at their position for the past five years. This salary structure is meant to provide fair compensation based on the highest earners at that position, ensuring that players are paid in line with their market value.

The logic behind this two-time franchise tagging salary increase stems from the concept that players should be appropriately compensated for their skills and contributions to the team, especially after they are tagged a second time. This mechanism allows players to receive a salary that is not only reflective of their individual value but also adjusted for inflation and market trends within the league.

In contrast, the other options do not accurately describe what occurs with regards to multiyear franchise tagging. For example, the notion of receiving a retroactive salary increase does not apply to the franchise tag mechanism. Automatic free agency as a result of consecutive tags doesn't align with the rules governing the franchise tag, which is designed precisely to keep a team from losing their top players without compensation. Furthermore, players can negotiate under the franchise tag, but they are not allowed to refuse the tag to become unrestricted free agents