The Patriots used a non-exclusive franchise tag on Matt Cassel. In 2008, he made $580,000. 120% of that is $696,000. The average of the top 5 highest paid QBs is $14,650,000 Guess which one he is getting paid. Now, if he wants to sign with the Lions (I have no idea why anyone ever would), the Pats would get two first round picks.
Now, I would like to explore the idea of using a Franchise Tag in baseball. If it were implemented, it would obviously have to be done differently since there is no salary cap in baseball like there is in football. And being paid the average of the top five salaries in baseball at that position can be financially disastrous for smaller market teams due to certain outliers. However, being paid 120% of the previous year's salary can be unfair, as some players were under contract for under a million, and deserve more than 120% of their previous year's salary. Thus, I propose the following for arbitration-eligible players.
A team wishing to use the franchise tag on an arbitration-eligible players may use a franchise tag and retain said player for one year and pay him the higher of the following: the average of the team's players at the same position (a 2B would be paid the average of the 3B, 1B, and SS; a LF would be paid the average of the starting CF and RF; a pitcher would be paid the average of the other 4 starting pitchers, etc), or the average of the offered salary and the requested salary. The team may only use one of these a season, and it is a one year contract.
For other players, i.e. Type A and Type B free agents, a player would be paid either 120% of his previous year's salary, or the average of the previous year's salaries of free agents at his position.
Similar to football, there would be an exclusive tag and a non-exclusive tag. If a team uses a non-exclusive tag, then that player obviously has the right to negotiate with other teams. If another team signs that player, then the original team is entitled to a compensation pick in the draft, as well as the right to match that offer to the player. The compensation pick would be the highest pick that the team has (outside of the top 10; which would be protected). For example, if a team has already received a compensation pick for the loss of a free agent, let's say the 20th pick in the draft, and it's own pick is pick number 25, then that team would give up the 20th pick to sign a player that has a non-exclusive franchise tag placed on him.
Yes, I know it is complicated. This is more of an exploration at the possibility of implementing a franchise tag in baseball.

