The Padres bought out their $6 million option on Gwynn for 2001, paying him $2 million instead, and he became a free agent for the first time. After weeks of negotiation that were at times bitter, Gwynn re-signed with the Padres for 2001, agreeing to a one-year, $2 million contract with a chance to earn another $3.7 million in performance incentives. However, he was hampered that season by problems to his right leg, which had been his "good leg", and was limited to just 17 games on the field. In the first half of the season, he missed 64 games due to a right hamstring that resulted in two stints on the DL. After returning, he began having problems with his right knee. He was limited to pinch-hitting duties and started only one game after mid-July due to a torn meniscus in the right knee. Gwynn formally announced on June 28 that he would retire at the end of the season, and subsequently received an ovation at each stadium the Padres visited. He was honored as a non-playing squad member at the 2001 All-Star Game During the game, he and Cal Ripken, who had announced his retirement nine days before Gwynn, were presented the Commissioner's Historic Achievement Award by Commissioner Bud Selig. On October 6, 2001, at Qualcomm Stadium, Gwynn had a pinch RBI double off Gabe White of Colorado for the final hit of his career. He considered starting the next day in the final game of the season, but he was not confident he could handle a fly ball. In his final appearance, he pinch hit in the ninth inning, grounding out to shortstop. Although he was limited to only 112 plate appearances, Gwynn finished the season with a .324 average, his 19th consecutive season batting at least .300.