What's it mean when a team picks up or exercises an option on a player? Like recent headlines "Memphis exercises third-year option on Hakim Warrick." or "Denver exercises fourth-year option on J.R. Smith and third-year option on Linas Kleiza."
<div class="quote_poster">Ming637 Wrote</div><div class="quote_post">What's it mean when a team picks up or exercises an option on a player? Like recent headlines "Memphis exercises third-year option on Hakim Warrick."</div> It means the team had an option (as specified in the contract) to keep him for a third year or let him become a free agent, and they decided to keep him for his third year.
Theres two options: a "Team Option" and a "Player Option" Say a player has a 3 year contract and a team/player option for the 4th year. That means a team or player can exercise the option so the player has to stay with the team an extra year (at a salary that was negotiated for the original contract) instead of becoming a free agent. Almost all rookies have a team option. And players who get signed after their rookie are usually the ones with a player option, if they agree upon one in the contract. If the team or player does not exercise the option, they become a free agent. Example: Peja's contract ended last season, but he had a player option to stay with the Pacers for one more season. But he didn't exercise the option because he felt he could get a higher paying contract in the free agent market. Which he did when the Hornets overpaid to get him. *edit Dang, someone beat me to it.
