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How is a player's salary calculated with respect to the luxury tax in a team option year?

From Brotherly Glove:

Quote:

Contract options work a bit differently. A club option, where a salary becomes guaranteed only if the team decides to exercise it, is not included in the average annual value calculation. If the Phillies had a player signed to a 3-year deal for $30 million, with a fourth-year club option worth $12 million, the average annual value calculation would only use the 3/$30.

Had it been a player option, meaning the money becomes guaranteed if the player decides to exercise it, the AAV includes the option year. In that case, the salary to be included for the luxury tax calculation is $10.5 mil ($42 mil/4 yrs). Mutual options, where either the club or player can guarantee the money, are treated like player options and are therefore included in the AAV calculation.

Vesting options, where the money becomes guaranteed if certain milestones are set, are treated like club options and are excluded from the AAV calculation. If the option includes a buyout amount, and the option is declined, the buyout amount is treated as the equivalent of an isolated one-year deal.

I could see the bold part meaning either that the club option year stands on it's own i.e. the 4th year accounts for $12MM towards the threshold, or that the 4th year is just valued at the same value as the previous three years.

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Originally Posted by RyanFTW

Adrian Gonzalez on the cover of MLB12: The Show. Probably in order to put salt in the wounds of all Red Sox fans that he wasn't enough to get them to the playoffs.

Ughhh.....Just a reminder that I need to buy a new PS3/spend $150 to get mine fixed.

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Albert Pujols

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Everyone ages, A-Rod's a prime example. Enjoy the show, but Pujols is likely already on the decline.

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Twins or Dodgers.

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Originally Posted by wakeupgomer

As a huge Rays fan and Pena apologist, I'm not super excited. Better than Dan Johnson though.

You should apologize to Pena again for even mentioning him in the same breath as Dan Fucking Johnson.

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Scutaro rumored to be headed to COL.

I'm caught of guard.

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And...Now the deal is dead.

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Originally Posted by Eich696

Even though the deal is dead, that is weird..

Very weird. In a matter of twenty minutes the guy from the Denver Post (I think) set off a storm and then was like "uhhh, actually theres no deal."

Originally Posted by startBBtoday

Hmm, I'll bet it's a. Aviles could get the job done in the mean time, and b. they think Iglesias (uggggggggggggggggggggggggggggggghh hhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh) is close.

A while back before Melancon and Bailey, I think there was a rumor that they were talking about Scutaro. I was 100% convinced that it would be Scoot for Huston Street, but that was when Lowrie was still on the team.

I'm actually intrigued by the idea of Iglesias starting, just because I wonder how good his defense would have to be/how bad his bat could be for it to not be a net negative.

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Tribe should offer Casey Kotchman $1.

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Having Kotchman as your starting 1B is lIke losing musical chairs. But unless Laporta finally makes good, it might be worth adding a decent glove guy to thr mix, Though with such a limited upside, the money could be better spent elsewhere.

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Scutaro deal back on. 50% intrigued, 50% terrified.

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Originally Posted by Flags of Dawn

*cough*Olney*cough*

Originally Posted by Drew Beringer

Most definitely

What has Olney said? Based on my impression of what he's written that I've read, he seems to be more on the side of "we don't know who's taking what, so let's assume they're all on it and move on."

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Bring me Gavin Floyd.