Rangers can ignore Joc Pederson’s opt-out clause

Rangers’ two-year, $37 million deal with Slugger Joc Pederson it was agreed late last month and announced just before the new year, but it appears the full details of the deal were not made clear at that time. It is already known that Pederson’s deal contains a mutual option for 2027 and that he can opt out of his contract after the 2025 season. However, the Associated Press reports that the Rangers can ignore Pederson’s opt-out by exercising that mutual option with a year in advance. The contract also contains a no-trade clause, according to the AP.

Indeed, if Pederson signals his intent to opt out, the Rangers can veto his return to the open market by agreeing to commit to another two years and $37 million. It could become an even more expensive commitment for Texas, however, as Pederson’s contract contains escalators that would increase his 2026-27 salaries up to $21.5 million in the event he wins a Silver Slugger or is named in the All-MLB team (eventually second team) at season’s end. That would mean committing two years and $43 million to Pederson to clear the waiver. Coupled with his $5.5 million signing bonus and $13 million salary in 2025, Pederson’s contract can max out at $61.5 million over three years if he turns in a big enough season.

Pederson, 33 in April, has never won a Silver Slugger Award or earned All-MLB honors (dating the inception of the All-MLB teams in 2019). He certainly has enough energy in his bat to do so, but his long struggles against left-handed pitching have weighed down his velocity stats and likely prevented him from accumulating playing time to make his way. Pederson is just a .210/.300/.330 hitter in his career against lefties, compared to a .246/.349/.494 mark against righties. Last year the D-backs allowed him just 42 plate appearances against lefties (.219/.405/.344), but Pederson decimated righties with a slash line of .281/.392/.531.

Even without the escalators, the revelations of a no-trade clause and the team’s ability to ignore Pederson’s opt-out clause are notable in themselves. Texas, after all, was willing to commit two guaranteed years and $37 million to Pederson this offseason. If he performs to expectations, they will essentially have the option to make the same commitment for his age 34 and 35 seasons, which would lock the slugger in as a Ranger until 2027.

It’s also worth pointing out that there is no scenario in which Pederson could opt out and receive a qualifying offer from the team; Pederson has already received (and accepted) a qualifying offer from the Giants following his 2022 All-Star season. Players can only receive one qualifying offer in their career. Therefore, if Pederson decides to opt out in November, the Rangers’ choice would be to extend him for another two years or let him return to the market without any compensation for his potential departure.