What is a mutual option in baseball? Rays and Cedric Mullins explained
A mutual option in baseball is a contract clause that lets both the team and the player decide whether an extra season is played at a set salary. Both sides must agree for it to take effect. If either side declines, the player becomes a free agent, usually with a buyout payment to the player.
Why it's in the news
The Rays declined the mutual options on Cedric Mullins and Nick Martinez on Friday, which makes both pitcher and outfielder free agents. The decisions were widely expected because such options are rarely accepted by both sides.
- Cedric Mullins — Rays decline Cedric Mullins' $10 million mutual option for 2027
Background
A mutual option is a provision in a player's contract that gives the club and the player each a choice about an additional year. Each side can accept or refuse the year on its own terms. The year is played only when both agree. If one side refuses, the contract ends, and the player has the right to sign with any team, often after receiving a buyout payment.
Clauses like this are common because they move money between seasons. A team may want to delay part of a payroll commitment, while a player may want the security of a guaranteed deal. Because the value of the extra year often doesn't make sense for either side, mutual options are rarely, if ever, exercised by both sides.
On Friday, the Tampa Bay Rays declined a $10 million mutual option on Cedric Mullins, a center fielder. Mullins earned $7 million with the club this season after signing there in December, and the club paid a $500,000 buyout. The Rays also declined a mutual option with starting pitcher Nick Martinez, who had a $20 million option. Martinez, who had earned $9 million this season, received a $4 million buyout, and he also declined his side of that option.
What people are asking
Is there a mutual option in the NBA?
The sources do not address whether the NBA uses mutual options.
What happens when a club declines a mutual option?
The player's contract ends and he becomes a free agent. The club typically pays the player a buyout instead of the salary for the extra year.
Why did the Rays decline Cedric Mullins' option?
The sources state that the decision was expected. Mullins hit .205 with a .628 OPS this season and lost his starting job to Jonny DeLuca during the playoffs, where he made six appearances off the bench.
What is the meaning of a mutual option in MLB?
In MLB, a mutual option is a contract clause that gives both the club and the player the right to approve an extra season. It is exercised only if both agree.