According to Kiley McDaniel and Jeff Passan of ESPN, right-hander Gerrit Cole has exercised the opt-out clause in his contract with the Yankees. However, the Yankees have the option to extend his contract by one year at the same $36 million salary to prevent him from becoming a free agent.
Initially, Cole signed a $324 million, nine-year contract with the Yankees, with annual salaries of $36 million starting in 2020. He had the option to opt out after five years, walking away from $144 million over the final four years. The Yankees now have to decide whether to extend his contract for $180 million over the next five years or let him become a free agent.
Throughout the first few years of the contract, Cole performed exceptionally well. He maintained high standards from 2020 to 2023, pitching 664 innings with a 3.08 ERA. He struck out 31.1% of batters faced, had a walk rate of 5.9% and a ground ball rate of 41.1%. Cole accumulated 15.4 wins above replacement during this time, ranking fifth in the league. He also won the AL Cy Young award in 2023 with a 2.63 ERA over 209 innings.
However, in 2024, Cole faced some challenges with elbow inflammation during spring training and was briefly sidelined. Despite a slow start to the season, he improved his performance over time, finishing the year strong. He helped the Yankees reach the World Series for the first time since 2009.
The Yankees are now in a dilemma regarding Cole’s contract extension. They have until Sunday to make a decision on whether to retain him or let him explore free agency. If they choose not to extend his contract, they will have to consider other options for their starting rotation.
Overall, the decision to retain Cole or let him go will have significant implications for the team’s future and roster composition. It remains to be seen what the Yankees will decide in the coming days.
