What is a Team option?

A team option is a provision in a player's contract that grants the team the right to extend the duration of that contract for an additional year or years, typically at a predetermined salary. This option allows the team the flexibility to assess a player's performance and fit within the team's overall strategy before committing further financial resources.

The team can decide whether to exercise this option based on various factors, including the player's performance in the preceding season, the team's financial situation, and the overall direction of the team's roster construction. If the team chooses not to exercise the option, the player becomes a free agent at the end of the current contract.

This construct benefits teams by providing them with strategic control over their contracts and roster decisions, while the players typically must perform at a high level to be retained under these conditions.