McAdam: Assuming Dustin Pedroia doesn't play again, how do he and the Red Sox handle his contract?

Dustin Pedroia announced Monday that he is putting his rehab assignment on hold and returning to Arizona next week to spend time with his family and determine what's next for his career.

Throughout his recovery from reconstructive knee surgery in October 2016, Pedroia has been unfailingly upbeat about his prospects for a return to the field. But Pedroia, in a moment of candor, stated, "I'm not sure,'' when asked if we would play again.

Monday had the feel of the first step of the final goodbye for Pedroia.

But beyond waiting for Pedroia to make a determination about his career, there's the issue of his contract. Through the terms of a long-term extension signed in the middle of 2013, Pedroia is making $15 million this season, $13 million in 2020 and $12 million in the final year of the deal in 2021.

In Major League Baseball, long-term contracts are fully guaranteed. But there are some nuances to such deals.

We spoke to some baseball executives and agents to gather information on this topic. Here are some questions and answers.

Q: If Pedroia decides he can't play anymore, can he simply announce his retirement?

A: Sure. But if he files retirement papers with MLB, he forfeits the remainder of his contract. So that isn't going to happen.

Q: If he can't "retire'' how do they work this out?

A: There are a couple of options. Pedroia was transferred to the 60-day DL Monday and he could simply remain there -- theoretically for the remainder of the life of the contract -- and continue to draw his salary in full.

Q: Are there any drawbacks for either side under that scenario?

A: For Pedroia, no. For the Red Sox, a slight one. During the season, Pedroia could reside on the 60-day DL and not take up a valuable spot on the 40-man roster. But from October through the start of the regular season, the 60-day DL and Pedroia would need to be on the 40-man roster, and in theory, could take away a spot that the Sox could otherwise use to protect a prospect or minor leaguer.

Q: So, are there other options?

A: Yes. If there comes a time when it's determined that Pedroia simply can't play any more and Pedroia agreed that his playing days were over, the Red Sox could simply give him his unconditional release. Under that scenario, it would be no different than, say, the Sox releasing Hanley Ramirez a year ago and being on the hook for the remainder of the deal.

Q: Is there precedent for something like this?

A: Yes. In recent years, the New York Mets released David Wright (back) and the Texas Rangers did the same with Prince Fielder (neck).

Q: Was there anything different about those cases compared to Pedroia's?

A: Yes. Both the Mets and Rangers had insurance on those deals, giving them some relief. Those teams needed to go through additional documentation from medical personnel, to satisfy the insurance companies that the player was indeed unable to continue playing. The Red Sox, as BSJ noted in March, elected not to insure Pedroia's contract, so other than with Pedroia himself, the Red Sox don't have anyone who requires their approval.

Q: If Pedroia is released, what happens how the Red Sox payroll is computed?

A: The Red Sox will not catch a break here. Just as Ramirez's money counted toward determining where the Red Sox are relative to the luxury tax threshold, it's the same with Pedroia's remaining money. The only positive for the Sox, in this case, is that the money lessens after this year with $13 million next season and $12 million in 2021.

Q: Are there any time constraints at work here?

A: Not really -- only in the sense of the timing between the player and team. For instance, Pedroia may want to leave the door open for a potential return next spring and the Sox could then place him on the 60-day DL for the remainder of the year, and then, if he finds he still can't play next spring, work out plans to arrange his release.

Q: Finally, an undisclosed amount of Pedroia's contract includes some deferred money. How does that change what counts toward the CBT (competitive balance tax or luxury threshold)?

A: That has already been accounted for through the life of his contract from the beginning -- presumably allowing the Sox to lower the AAV (average annual value) at least somewhat, though the exact discount isn't publicly known.