What? He doesn't really have an option. He just signed his contract, he wants to be here. The one with a choice is Prohm. It's his choice for Otz to be here or not. There is literally zero reason to give him a raise right now. Zero.
Wait, you know he can leave, right? He can go coach another team.
If we want to keep him, there certainly is plenty of logic in offering a raise if that's what it takes.
Now, if Prohm doesn't want him that much, don't offer it. Maybe he would like to keep Otz but only at his current contract, who knows.
But it isn't like TJ has no leverage here if we are assuming we want him back.