They are a negotiating tactic that teams can and should offer to players to get them to sign with them and not another team without spending significantly more money Yes. But in practice it never seems to work that way. The Red Sox didn't seem to get any appreciable discount for Price in exchange for that opt-out. That's ... just *so* wrong. You don't do it for the discount. You do it to get a guy without having to pay substantially more. Boston paid what everybody assumed, and not the $30m more than the market that was mentioned before. And they got him relatively early in the process. If the Red Sox were giving Price a straight 7/217 deal, I doubt he'd get $90 million the first three years. It would probably be more backloaded. Instead, the Red Sox are essentially paying market rate for three years with little ability to gain any surplus value in the process. I don't blame them for doing it, and I wouldn't have opposed the Cubs doing the same thing, but it's a structure providing nothing but downside to the team. If Price opts out and gets a better contract, they've almost certainly attained stupid surplus value.