
Shortly after the World Series concluded, New York Yankees’ ace Gerrit Cole had a decision to make. Prior to the 2020 season, Cole signed what, at the time, was largest contract ever awarded to a pitcher: 9 years, $324 million. However, that deal included an opt-out after five seasons.
The Yankees, not wanting to be levered too badly if Cole performed as expected in the first five years of the deal, included a trump card in the agreement. If Cole elected to opt out of the final four years and $144 million, New York could subvert the opt out by agreeing to add a fifth year at $36 million, pushing the contract to 10 years and $360 million. This would be a risk to the Yankees, as that additional year would be Cole’s age-38 season.
Some prognosticators believed that the best situation for the Yankees would be Cole opting out, and them being freed of their remaining obligation to a pitcher who missed the first 75 games of this season with nerve irritation and edema in his throwing elbow. And over the weekend, Cole did just that. He elected to opt out and either force New York’s hand or become a free agent.
General manager Brian Cashman and owner Hal Steinbrenner took the weekend to assess their options, and elected not to add the fifth year to Cole’s deal. As of Monday night, Cole was set to become a free agent.
What to do? Brian Cashman elected to call Gerrit Cole’s bluff and retained his ace pitcher for four … [+]
However, when informed of the Yankees’ decision, Cole and his agent, Scott Boras, decided that four years and $144 million in the hand – for a team the player rooted for as kid, for a team that just won the American League pennant, for a team that was a few boneheaded plays away from possibly winning the World Series – was better than diving into the free agent waters that have been less than hospitable to starting pitchers the past few years.
Unfortunately for Team Cole, there are no “take backs.”
So, the team and the player had to go to the Major League Baseball Players Association to approve Cole’s rescinding of his opt-out. Or, said another way, to agree that the team not be required to tack on an additional year and $36 million to the contract to keep the player. According to reporting by Bryan Hoch at MLB.com, everything was approved about an hour before the 5pm deadline Monday night. Crisis averted.
Per MLB.com, sources indicated that the Yankees and Cole would continue to discuss a potential extension, but Cashman said no talks were taking place at this time. With the free agency of right fielder Juan Soto already lighting up the hot stove, New York has more pressing matters than re-working the contract of a pitcher they have under control for another four seasons.
Boras negotiated a similar contract for Jake Arrieta with the Phillies back in 2018. What was initially reported as a 3-year, $75 million deal, had an opt-out after the second year, which could have been trumped by guaranteeing the third year and adding two more, making the total deal five years, with $115 million guaranteed. Escalators based on performance could have pushed it to 5/$135 million. Arrieta went 18-19 with a 4.26 ERA, a 4.53 FIP, and a 100 ERA+ in his first two seasons in Philadelphia, and elected not to opt-out. When the third season ended with statistics similar to the first two, the Phillies let Arrieta become a free agent once again.
Time will tell if Cole gets another contract – or a contract extension – from the Yankees. Regardless, by being allowed a “do-over,” Cole got a second bite at the Big Apple, where he will remain the ace for as long as his arm can hold out, or four years, whichever comes first.
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