The risk is that the player will accept arbitration and be awarded a high salary by an arbiter.
But the sides could not agree, and rather than risk that Guerrero would accept arbitration, the team declined to offer it.
Morris, before accepting arbitration, had made proposals to four other teams that included a three-year deal for $5.4 million.
Dabhol and the state utility agreed in their contract to accept international arbitration.
If the offer is made, the player has until Dec. 19 to accept or reject arbitration.
Could have accepted arbitration and made 10 million this year while playing for a winning ball club.
Eight other free agents had until midnight last night to decide whether to accept arbitration from their former clubs.
If a player did not accept arbitration, his former club has until Jan. 8 to reach agreement on a contract.
If a player accepts arbitration, he receives only a one-year contract.
Both players, however, wanted to stay with their teams so they accepted arbitration.