Found October 17, 2013 on The Outside Corner:
The one year contract is becoming something that's used more and more by GMs across the league. One reason it gets used is as a buy low option for a player coming off an injury who can't get the multiple year contract he desired. Another reason it gets used is for players that had a disappointing year and want to rebuild their value for a multiple year contract. One more reason it gets used is when a player simply doesn't like the multi-year contracts offered to him, and wants to maximize his salary in the next season. Whatever the situation where a one-year deal is used, it can work out really well or really poorly - there's generally not much of a middle ground. The players that perform well during their single year contract generally get a multi-year offer or extension the next winter, and all is well. The players who don't do well are either looking at another single year contract for a lesser salary or simply have to settle for a minor league contract.  ...