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Simple, really. Maybe Ray decides to retire after one or two more years. Maybe he wants to play a third. Now he has a contract for three years, instead of seeing a two-year deal expire in 2014, wanting to play one more year, and hoping someone offers him a one-year deal at age 39, when he might not get it (or only get it from a bad team wanting him to mentor young whippersnappers). He can now basically go out on his own terms.
That extra year of job security would probably be significant. Maybe not the primary factor, but there's a very good chance that a third year on the deal would be more important than money at this stage of his career.
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There is no job security. He can be cut after 2 years at which point he will have earned $9 million.
Which is less than $12 million.
The third year is totally irrelevant moneywise.