What are option clauses? What kind of option clauses are there?
An option clause allows a contract to be extended for one additional season after the date it is scheduled to end. For example, a five-year contract with an option for the sixth year means that if the option is exercised, then the contract extends through the sixth season, but if the option is not exercised, then the contract ends after the fifth season. Options must be exercised by the July 1 that precedes the option year, except player options for players who would become restricted free agents, which must be exercised by June 25. Once exercised, an option cannot be revoked (for example, a player cannot invoke an option on June 20th and change his mind on June 25th). Conditional options are not allowed — the existence of the option may not be contingent on some condition, such as the number of games the team wins or the points per game the player scores. There are three types of options: • Team Options give the team the right to invoke the option year. There can be only one option y
