Yeah this season was to have been the one in which we saw if he could bounce back from a mediocre 2016, but instead he has produced somewhat worse at the plate with continuing loss of running speed. So I would decline the option. Bautista on the other hand will likely be happy to exercise it. He won't even get a 1 year deal for that much money at this point. This may be a spot to fill with a free agent. I wonder what Cain will get in free agency.
I counted about $51 M coming off the books from free agents after 2017, but a number of players due more in Arb (Pillar, Sanchez, Stroman). The good news with Donaldson's bad season is his last year of Arb he may not be able to get much more than the $17M he is getting this season. And Sanchez's lack of production will similarly keep his contract down. So, yes there will be money to spend on payroll, and I might even advocate going above the 2017 payroll (the money continues to pour in with AL-leading attendance). But I don't know that there is much for 'creative ways' to use that. With the Jays adamant in not trading top prospects, I don't see them getting any quality high paid players in trade. You are pretty much looking at taking on Liriano- or Smoak-type reclamation projects and hoping they can rebound. To me, the question is how aggressive do you go in the free agent market, and with the season the Jays are having, attracting top free agents could turn out be as challenging as ever.
Yes a tactical retreat must be done. The question then is do you dig in and hunker down or regroup and add some fresh troops for a new attack in 2018.