I think Alves understand that if he sign for one year more there is another problem. He will be in a poor position for a decent contract from a another team. He is 32/33(?) then and that is kinda too old for an offensive right back. He is kinda too old allready. I figure he and his agent are just pushing it because of the ban. With a three year deal he's probably happy to retire when his contract expires.
From the boards point of view there is alot to loose. If his performance keeps dropping and the team fails to win something, then you can be sure it will be used against them. Imagine this thread then.
The only way i can see to keep dani for three years is to sell Montoya/Douglas, buy a world class RB and let Alves play as his backup when he's too old to be a starter.
I would love to see him play for another seaason, but maybe its best for the team and him that he walks this summer.