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The world of MLB contract law is arcane and often unknown to the majority of fans who follow our great game. Contracts often have a plethora of add-ons and conditions. One of these is what is known as a vesting option.
The New York Mets have signed Justin Verlander to a 2-year deal with a vesting option for 2025. Although the terms of this particular deal are not known, fans have been wondering what exactly a vesting option is in the MLB.
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"JV to NYC! Justin Verlander, Mets reportedly agree to a 2-year deal with a vesting option for 2025, per @JonHeyman
A vesting option is essentially an additional year in a player's contract that is contingent on performance. Pitchers can be evaluated based on innings pitched, whereas hitters can be evaluated based on plate appearances.
Vesting options are sometimes confused with player options; the two are similar but not the same. The player option is usually contingent on the player in question agreeing to play another year at his discretion. Regardless of discretion, a vesting option is based on his performance.
Vesting options are used to ensure that the team is getting all the value from the contract that they are expecting to get. Vesting options are commonly adopted to ensure that injuries do not leave teams with a large bill for a player who has not been able to play.
The Washington Nationals, for example, are still obligated to pay pitcher Steven Strasburg roughly $40 million per year until 2026, despite the fact that the injury-laden pitcher may never throw another pitch.
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"Many of you have been asking me what Justin Verlander might look like as a New York Met in 2025 after his 3rd year vesting option kicks in. Here is a sneak preview." - @ Mark Gooden
MLB Vesting options do not usually concern performance metrics like home runs, RBIs, strikeouts, or ERA. Instead, they are usually concerned with the amount that a player plays. This is why metrics like plate appearances or innings pitched are used most often.
Some notable MLB vesting options currently at play in the MLB include San Francisco Giants pitcher Carlos Rodon and Houston Astros catcher Martin Maldonado. Rodon pitched 110 innings in 2022, which allows him to opt out of his last year with the Giants. Maldonado had to appear in at least 90 games to be eligible for a $5 million salary in 2023.
MLB vesting options can often be hidden
The MLB vesting options are not always publicly disclosed. Although this happens for several reasons, one of the main ones is so players do not feel undue public pressure to obtain the allocated goal.
