Joc Pederson’s Contract Allows Rangers To Override Opt-Out By Exercising 2027 Option

The Rangers’ two-year, $37MM deal with slugger Joc Pederson was agreed to late last month and announced shortly before the New Year, but it seems full details of the arrangement weren’t made clear at the time. It’s already known that Pederson’s deal contains a mutual option for 2027 and that he can opt out of his contract following the 2025 season. However, the Associated Press reports that the Rangers can override Pederson’s opt-out by exercising that mutual option a year in advance. The contract also contains a no-trade clause, per the AP.

Effectively, if Pederson signals his intent to opt out, the Rangers can veto his return to the open market by agreeing to commit another two years and $37MM. It could become an even pricier commitment for Texas, though, as Pederson’s contract contains escalators that would boost his 2026-27 salaries up to $21.5MM in the event that he wins a Silver Slugger or is named to the All-MLB team (first or second team) at season’s end. That’d mean committing two years and $43MM to Pederson in order to override the opt-out. Paired with his $5.5MM signing bonus and $13MM salary in 2025, Pederson’s contract can max out at a hefty $61.5MM 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 back to the inception of the All-MLB teams in 2019). He certainly has enough pop in his bat to do so, but his long-running struggles against left-handed pitching have both weighed down his rate stats and likely kept him from accumulating the playing time to mash his way into consideration. Pederson is just a .210/.300/.330 hitter in his career against southpaws, compared to a .246/.349/.494 output against righties. The D-backs afforded him only 42 plate appearances against lefties last year (.219/.405/.344), but Pederson decimated righties with a .281/.392/.531 showing.

Even absent the escalators, the revelations of a no-trade clause and the team’s ability to override Pederson’s opt-out provision are plenty notable on their own. Texas, after all, was willing to commit a guaranteed two years and $37MM to Pederson this offseason. If he performs to expectations, they’ll essentially have the option to make that same commitment for his age-34 and age-35 seasons, which would lock the slugger in as a Ranger through 2027.

It’s also worth pointing out that there’s no scenario where Pederson can opt out and receive a qualifying offer from the team; Pederson already received (and accepted) a qualifying offer from the Giants following his All-Star 2022 season. Players can only receive one qualifying offer in their career. As such, if Pederson triggers his opt-out in November, the Rangers’ choices will be to extend him for another two years or to let him return to the open market with no compensation for his potential departure.