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I'm for extensions, but I do think there should be a limit, say max 2 extensions a year per team and no more than 'x'# of extensions can be carried on a roster. This will help limit the thinning of the FA pool and give reason to pause and think before handing out an extension.
If we want people to let their players go into free agency instead of extending everyone, all we need to do is do what MLB already does. We need to give them compensation for letting their players walk. If people can get a pick in the amateur draft, they would be very willing to let some of their guys go into free agency.
Only problem I would see with that is that it would encourage people to sign players for huge, lengthy contracts because they know that they can't resign them.
This is exactly what we should do!
I am ok either way. If we do go with extensions, two thoughts:1) I don't think players should not be able to make less than the previous year. Players in the real MLB are not going to take less money to remain with their team (except in rare circumstances) unless they have tried the free agent market. 2) Would we want to consider some kind of limitations? I'd hate to see the free agent pool be completely closed off from players that will help improve teams.
Off the top of my head and repeated what has been said1. Option year needs to be more then the average annual salary. A set percentage for either all or based on salary level.2. Limit options for each team for each year.3. Think about making options tradable.4. Draft pick compensation for dropped and signed FA. But not sure if I would go beyond supplemental between second and third, and I wouldn't penalize a team by costing them a draft pick for signing a free agent.