Why Thairo Estrada Can’t Hit Free Agency After Rockies Turn Down Option

Thairo Estrada was one of the few decisions the Colorado Rockies had to make on contracts this offseason. He and the team held a mutual option.
Even as the Rockies’ search for a general manager or president of baseball operations drags on, the Rockies were on the clock when it came to the option. Colorado had to decide within five days of the end of the World Series, which was Saturday. Turns out it only took the Rockies two days.
Per MLB.com, the Rockies turned down their part of the mutual option on Estrada’s contract for 2026. In the case of a mutual option, both sides must pick it up. At $7 million, Estrada was probably willing to pick up the option. The Rockies appear willing to pocket the money.
Normally, Estrada would become a free agent now. But, thanks to a technicality, he has to wait at least a few more weeks — and he’s still at the mercy of Colorado.
Why Thairo Estrada Isn’t a Free Agent Yet
Estrada’s problem is that even though he and the Rockies had a mutual option on the deal they signed last offseason Colorado had a trump card — Estrada’s service time. Entering 2026, the 30-year-old only has 5.133 years of MLB service time. That means he cannot become a free agent — at least not yet.
The Rockies have his arbitration rights so they can work on getting a deal done for 2026 — it just won’t be as expensive as the $7 million he was hoping for. Per MLB Trade Rumors, Estrada is projected to receive $3.8 million in 2026. That’s if the Rockies and Estrada compromise on a deal for 2026. If they can’t agree to a deal by the deadline in mid-January, then the two sides would go to an arbiter for a final deal.
There is one way he can become a free agent this month. The Rockies can non-tender him. In baseball terms it means Colorado doesn’t intend to tender him a contract for 2026 and is allowing him to hit free agency. That would allow him to sign with any team — and he would carry his service time with him.
It’s possible Colorado goes this route. Estrada did not have a good season. He played in only 39 games due to injury and slashed .253/.285/.370 with three home runs and 21 RBI. The Rockies may be looking to go younger at the position and by non-tendering Estrada, it creates a spot on the 40-man roster.
That may be a decision for the new GM. But, for now, Estrada won’t be playing on the $7 million option he was hoping for.
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