According to the Cleveland Indians, the team exercised their $8 million 2014 club option on starting pitcher Ubaldo Jimenez. Having the right to void, Jimenez did such and is now a free agent.
Jimenez’s contract, acquired from the Colorado Rockies in a July 2011 trade, initially outlined the 2014 year as a club option, meaning the Indians could choose to exercise it or not. But upon completion of the deal, the 2014 option became mutual, allowing either side to opt out. The Indians exercised their portion, but Jimenez and his agent evidently recognized that free agency will likely result in a multi-year contract with far more guaranteed money.
The Indians still have the opportunity to extend a qualifying offer to Jimenez—a one year deal worth roughly $14 million. Were Jimenez to reject such a deal and leave via free agency (a highly likely scenario), the Indians would receive draft pick compensation in the 2014 Rule 4 draft next summer.