Getty New York Yankees ace Gerrit Cole can opt out of his contract after the 2024 season, forcing the team to execute an option or let him walk
The New York Yankees still have some roster questions to answer before Opening Day, like where to put newly-acquired slugger Juan Soto within the order and whether to pull the trigger on another acquisition for the pitching staff.
However, at least one roster spot seems to be locked down: Gerrit Cole will be the Yankees’ ace yet again in 2024. After that, though, the future of his nine-year, $324 million contract is another story.
“Cole’s contract includes an opt out after the 2024 season, and the Yankees can void that opt out by picking up a one-year club option worth $36 million,” Mike Axisa explained for CBS Sports. “Essentially, Cole can force the Yankees to add an extra layer to his contract, making it a 10-year deal worth $360 million, thus reclaiming the record (for the richest pitcher contract in history) from (Yoshinobu) Yamamoto.”
Axisa added that such a record-breaking movie is “the most likely scenario” for Cole. But there are some other possibilities.
Projecting the Future of Gerrit Cole’s Contract With the New York Yankees
If Cole chooses not to opt out of his contract, he would become an unrestricted free agent after the 2028 season, when he turns 38 years old. It’s possible there is more money to be made on the open market at that point than the extra $36 million he would get from the Yankees for 2029. MLB contracts are getting bigger every year, and Cole could continue to be an effective pitcher well into the later years of his career.
He could also opt out and re-sign with the Yankees, possibly on a deal that nets him even more money but defers the average annual value further into the future. That structure gained some momentum after Shohei Ohtani opted to defer $680 million of his own record contract. And it could allow the Yankees to add even more firepower around Cole in the near term.
And, of course, the Yankees could decline their club option if Cole does opt out, allowing him to hit the free agent market and instead spend their money elsewhere.
The New York Yankees Could Let Gerrit Cole Walk at the End of Next Season
It’s hard to imagine that the Yankees would find a better place to direct their famously-large reserves of capital than on Cole, the reigning AL Cy Young Award winner. If anything, they seem likely to spend on a free agent who can pitch behind him.
But there is reason to speculate Cole finding a new home for 2025 is a non-zero possibility.
“The Yankees have been burned extending stars who opted out twice before,” Daniel Epstein noted for Forbes. “The team gave (Álex Rodríguez) a new ten-year, $275 million deal to remain in New York (after the 2007 season), but his play began to decline immediately.”
Similarly, the team was burned for extending pitcher CC Sabathia in 2011, just before his production fell off.
While anything could happen, Axisa reiterated that a successful season from Cole and then an opt out and club option that gives him the largest pitcher’s contract in baseball history is the most likely scenario.
“Barring a catastrophic injury in 2024, the smart money is on Cole using the opt out and the Yankees picking up the club option,” Axisa added.