Thursday, December 20, 2012

Mutual Options in MLB Player Contracts

Wendy Thurm over at FanGraphs has written an interesting story looking at the use of mutual options in MLB player contracts.  As she notes, the mutual option only vests if both the player and the team agree to extend the contract for another season.  Not surprisingly, Wendy finds that these clauses have rarely been exercised by both parties, as usually one of the two sides determines it would be more advantageous to walk away from the agreement.  Nevertheless, she identifies several reasons why it may make sense for such a provision to be included in a player's contract.

Check out the full piece here.

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