Table of Contents

    Options and ETO's

    Team and Player Options

    Options Generally

    Options provide a right to extend a Contract. An Option can be a Team Option (allowing the Team to exercise the option and extend the Contract) or a Player Option (vice versa).

    Other than Rookie Scale Contracts, which automatically provide two Team Options, the CBA only allows one Option Year in a Standard Contract.

    Limitations

    Below are the limitations for both Team and Player Options:

    1. Can only be for 1 Year;
    2. Salary (less Incentive Compensation), Likely Bonuses and Unlikely Bonuses cannot be less than the prior year;
    3. All other terms and conditions (including Compensation Protection) must remain unchanged from the prior year, other than the Player’s Payment Schedule;
    4. No Conditions – The Option must be a fixed right and not exercised/declined based upon a condition.

    Exercise Period

    Subject to the exceptions below, an Option must be exercised by 5:00 P.M. E.T. on the June 29th prior to the Season the Option covers.

    • RFA’s – If (i) it is a Player Option and (ii) the Player would become an RFA if declined, then the Option must be exercised prior to June 25th;
    • Rookie Scale Contracts – Rookie Scale Team Options must be exercised by October 31st the Season prior to the year the Option takes place.

    Player Options and Compensation Protection – If Compensation Protection would be extinguished if the Contract is terminated, then the Player has to wait until the last game of the Season prior to the Option Year to exercise his Player Option.

    Options and Compensation Protection

    To see how Compensation Protection is treated when an Option is declined, visit the Compensation Protection page.

    Early Termination Options (ETO’s)

    Generally

    An ETO gives a Player the ability to terminate the Contract early. This is different than an Option, which allows the Team/Player to extend the Contract for another Season.

    Limitations

    The ETO must only shorten the Contract one Year, and must shorten the 4th Season.

    If a Veteran Extension is signed, the ETO must be eliminated (since it can only terminate the 4th Season).

    If an ETO is exercised, then the Player is no longer eligible for an Extension.

    If a Rookie Scale Extension is signed, an ETO can be added but can only take effect at the end of the 4th season of the extended term of the Contract.

    The ETO must be a fixed right and not exercised/declined based upon a condition.

    ETO Limitation Period

    ETO’s must be exercised by 5:00 P.M. ET on June 29th prior to the Option Year.