As expected, the Chiefs franchise-tagged star outside linebacker Justin Houston on Monday, a league source confirmed to The Star.
The source said Houston has been given a nonexclusive tag, which he is not expected to sign at the moment, though it is unclear when he will decide whether to sign.
The news of the Chiefs’ official designation on Houston was first reported Monday by ESPN’s Adam Schefter.
By signing his one-year franchise tender, Houston would be under contract and be required to attend organized team activities and the Chiefs’ offseason program when they begin in April. But by holding off, Houston can also skip training camp and the preseason, return shortly before the regular season and command his full franchise salary, which is expected to be in the neighborhood of $13 million for linebackers.
Houston could also hold out for the first part of the season, return before week 10 and still earn an accrued season toward free agency.
The Chiefs have the option of rescinding the tender on Houston, but that would make him an unrestricted free agent.
The two sides still have until July 15 to work out a new deal with Houston. Otherwise, Houston would have to play the 2015 season under the tag to earn an accrued year. The Chiefs have the option of franchising Houston in 2016 for 120 percent of his 2015 salary, but would not be able to do so in 2017.
A nonexclusive tag would pay Houston the average of the five largest prior-year salaries at linebacker, which is currently projected to be approximately $13 million, but only if he doesn’t receive any offers from other teams. If he does, the Chiefs could either match the offer or let Houston walk for that team’s first-round picks this year and next, though it’s very rare for teams to surrender that bounty for any free agent.
The Chiefs will presumably need to slice another $5.5 million in salary by March 10 to accommodate the tag, since all teams have to be under the cap by the start of the new league year. The Chiefs, according to cap analyst Joel Corry, are currently believed to be roughly $7.5 million under the cap.
The 26-year-old Houston broke Derrick Thomas’ single-season franchise record for sacks last season with 22, which fittingly netted him the Derrick Thomas Award as team MVP at the 101 Awards banquet Saturday.
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