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The Raiders confirmed on Wednesday that they did not exercise the first of two one-year options they held on the contract coach Bill Callahan signed before the 2002 season.


"Callahan was informed that his contract would not be extended early Tuesday," the Raiders said in a press release Wednesday. "However, Callahan requested, for personal and family reasons, that the club hold any announcement until (Wednesday)."


Callahan was unavailable for comment, and the team did not issue any comments from Callahan.


Callahan's two-year contract expired after Sunday's season-ending loss to the San Diego Chargers. The Raiders had until Jan. 15 to exercise their option, a person in the team's front office said.


The Raiders' search for a replacement for Callahan started with Kansas City Chiefs assistant head coach/offensive coordinator Al Saunders, according to a source close to Saunders. The Raiders are in the process of seeking permission to interview Saunders.


Saunders, 56, has coached in the NFL since joining the San Diego Chargers in 1983. He was the Chargers head coach from 1986-88.


He has been with the Chiefs the past three seasons. This season, the Chiefs finished second in the NFL in total offense and first in scoring. The Raiders finished 25th (out of 32) in total offense and tied for 26th in scoring.


This year's 4-12 record tied the 1997 team for the franchise's worst record since 1962, when the Raiders went 1-13.


Their season was marred by numerous injuries, league-leading totals in penalties and yards penalized, the league's worst-ranked run defense, an inconsistent offense and erratic special teams play.


Also, cornerback Charles Woodson accused Callahan in a nationally televised interview of being ego-driven, inflexible toward heeding advice from veteran players and inconsistent in his disciplinary actions.


Numerous other players weighed in with similar complaints in recent days.


"It's gotten to the point now where it's inevitable that there's going to be a change," Raiders quarterback Rich Gannon said in a news conference Tuesday, only hours before Callahan learned of his dismissal in a meeting with managing general partner Al Davis and senior assistant Bruce Allen.


Callahan departs after six seasons with the Raiders. He served as tight ends coach, offensive line coach and offensive coordinator from 1998-2001. He was promoted to head coach in 2002 after the Raiders traded coach Jon Gruden to the Tampa Bay Buccaneers for the rights to four draft picks and $8 million.


The Raiders went 11-5, won the AFC West and reached the Super Bowl in 2002 for the first time in 19 seasons. Callahan compiled a 15-17 regular-season record and 2-1 postseason record during his tenure as head coach.


"The Raiders express gratitude to Bill Callahan for his contributions to the excellence of the organization throughout his four seasons as an assistant for the Raiders and his two seasons as head coach of the Silver and Black," the release said.


"Although the outcome was not satisfactory, Callahan's shining hour with the Raiders was guiding the Silver and Black to Super Bowl XXXVII in January 2003."


The Raiders lost 48-21 to the Buccaneers in the Super Bowl and never rebounded. They lost 13 of their final 17 games under Callahan and finished tied with the San Diego Chargers, Arizona Cardinals and New York Giants for the worst record this season.


The Raiders made no mention in their press release about the status of Callahan's assistant coaches.

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