The Reds announced that they exercised Brandon Phillips' 2012 option and declined their option for Francisco Cordero (Twitter link). The Reds will pay Cordero a $1MM buyout instead of a $12MM salary and they'll pay Phillips a $12MM salary instead of a $1MM buyout.
Phillips, 30, hit .300/.353/.457 with 18 homers in 674 plate appearances for Cincinnati in 2011. He has made his desire for an extension clear, stating in September that it would feel like “a slap in my face” if the Reds pick up the option without talking long-term deal. But if the sides do discuss an extension, don't expect a hometown discount "There’s no homeboy hookup. That ain’t going to work," Phillips said.
The Reds discussed an extension for Cordero, a Type A free agent, toward the end of the regular season. MLBTR's Tim Dierkes explained in his recent offseason outlook article that the Reds "can't afford to commit $5MM a year for two more seasons of Cordero."