Yankees ace triggers opt-out

Right-hander Gerrit Cole has triggered the opt-out in his deal with the Yankees, per Kiley McDaniel and Jeff Passan of ESPN on X. However, he is not yet a free agent, as the club can void the opt-out by tacking on an extra year at the same $36M salary as the rest of the contract.

Cole’s original deal with the Yanks was for $324M over nine years, with even salaries of $36M each season, starting in 2020. Per that deal, he could opt out after five years, walking away from the final four years and $144M. The Yanks could then tack on another $36M for 2029 and negate the opt-out. Now that Cole has triggered his opt-out, the Yankees now have to effectively decide if they want Cole back for $180M over the next five years. If not, Cole will return to free agency.

For the first few years of the contract, Cole continued to pitch to his usual excellent standards. From 2020 through 2023, he tossed 664 innings, allowing 3.08 earned runs per nine. He struck out 31.1% of batters faced, limited walks to a 5.9% clip and got grounders at a 41.1% clip. He racked up 15.4 wins above replacement in that time, per the calculations of FanGraphs, fifth in the majors behind Zack Wheeler, Corbin Burnes, Kevin Gausman and Aaron Nola. He won the American League Cy Young last year by posting a 2.63 ERA over 209 innings.

Throughout that time, it seemed quite obvious how the contract situation would play out. Cole would make the no-brainer decision to trigger his opt-out, while the Yanks would make the equally easy decision to add the extra year, bringing their total commitment to $360M over 10 years.

But the road ahead became a little less certain as things developed in 2024. Cole dealt with some elbow inflammation during spring training and was shut down for a while. No structural damage was found but he was sent to the 60-day injured list as he underwent his non-surgical rehab. He was eventually able to get back on the mound, making his season debut in the middle of June.

He was a little shaky at first, with a 6.75 ERA through his first four starts, but his numbers were far more Cole-like from there. He posted a 2.67 ERA in his final 13 starts of the year. His 25.7% strikeout rate wasn’t quite all the way back to his usual level but his 6.8% walk rate was still quite strong. He made another five postseason starts with a 2.17 ERA, helping the Yanks reach their first World Series since 2009.

While Cole has seemed like his old self for months, the Yanks may still have to think about this one. As seen in MLBTR’s Contract Tracker, the largest deal for a pitcher aged 34 or older was the five years and $185M the Rangers gave Jacob deGrom. That deal hasn’t gone well so far, as deGrom required Tommy John surgery and hardly pitched for the Rangers in the first two years of that pact. The Yankees would have to essentially match that deal to prevent Cole from getting away. As mentioned, tacking on the extra year would mean committing to paying Cole $180M over the next five years, just shy of the deGrom deal.

Cole’s record of durability is far better than deGrom’s. Cole has thrown almost 2,000 innings to this point in his career while deGrom was just over 1,300 when he signed with Texas. Still, Cole is just recovered from a notable absence related to his throwing elbow. Most of the other pitchers in this age bracket signed shorter deals with higher average annual values, with Wheeler’s recent extension with the Phillies coming in at $126M over three years. Max Scherzer’s contract with the Mets was $130M over three, though he was a few years older, starting that deal at age-37.

The Yankees are facing the prospect of Juan Soto hitting free agency, and Cole is potentially a second superstar departure. Some have argued that the Soto situation should motivate the Yanks to keep Cole just to stave off the possibility of losing two stars on the heels of a frustrating World Series loss. On the other hand, some have suggested that the Yanks might welcome having an extra $36M of payroll space to use on luring Soto back to the Bronx.

The latter line of thinking would leave a big hole in the rotation, but it wouldn’t be an awful group without Cole. The projected rotation would still include Carlos Rodón, Luis Gil, Clarke Schmidt, Nestor Cortes and Marcus Stroman. If the Yanks let Cole go, they could focus on Soto and circle back to him later or pursue some other starting pitchers. They had reported interest in Blake Snell last winter and he is opting out of his deal, becoming a free agent again. The market will also feature Burnes, Jack Flaherty, Max Fried and plenty of others. Garrett Crochet, Erick Fedde and dozens of other could be available in trade.

It’s one of the more interesting decisions of the offseason. Most free agent contracts bring back the best returns in the early years and get more painful as the deals go along. The Yankees have a chance to walk away after the best years and perhaps avoid the downside. But doing so would mean letting one of the best pitchers in the league slip through their fingers. They have until 5 p.m. Eastern on Monday to decide, per Mark Feinsand of MLB.com on X.