The fifth-year option would have cost the Seahawks $4.523 million fully guaranteed for the 2022 season.
Penny, 25, is a former first-round pick of the Seahawks back in 2018. He’s currently in the third year of his four-year, $10,765,436 contract that includes a $5,909,408 signing bonus with the Seahawks.
He was placed on the Physically Unable to Perform list back in August of last year due to a knee injury. He was later activated in December.
In 2020, Penny appeared in three games for the Seahawks and rushed for 34 yards on 11 carries (3.1 YPC) and no touchdowns.