What are the three types of contract renegotiations?

The correct answer identifies the three types of contract renegotiations as Extension, Restructuring, and Pay Cut.

Contract renegotiation often occurs in the context of sports contracts to address changing circumstances for the player or team. An extension refers to lengthening the duration of a player's existing contract to provide both parties with something beneficial: the team secures the player for a longer time, while the player may receive added financial security.

Restructuring involves modifying the terms of the contract, typically to adjust salary figures or payment schedules, which can help a team manage its salary cap more effectively. For instance, a player may agree to convert part of their salary into bonuses or defer payments.

A pay cut is often a more direct approach where a player agrees to lower their salary due to various reasons such as performance issues, team budget constraints, or in conformance with a new contract strategy.

This comprehensive understanding of Extension, Restructuring, and Pay Cut illustrates the different strategies involved in contract renegotiation tailored to meet the evolving needs of both players and franchises.