MLB Rumors: Gerrit Cole Opts Out of Yankees Contract; NY Can Void, Add $36M to Deal

New York Yankees starting pitcher Gerrit Cole will reportedly exercise the opt-out clause in his contract, forgoing the remaining four years and $144 million to become a free agent.

However, the Yankees now have the choice to void that opt-out by guaranteeing him $36 million for the 2029 season. That would keep Cole in town for the next five years at $180 million. ESPN's Kiley McDaniel and Jeff Passan reported the news on Saturday.

According to Passan, "The expectation is that the Yankees will add the $36 million to keep Cole at the top of their rotation and ensure that they don't potentially lose multiple integral players, with star outfielder Juan Soto hitting free agency."

The Yankees signed Cole to a nine-year, $324 million contract in Dec. 2019, setting the record for most total money (and salary) ever given to a pitcher. The deal included an opt-out after five years and a no-trade clause.

From 2020-2024, Cole went 59-28 with a 3.12 ERA, 1.03 WHIP and 10.8 K/9 rate over 125 starts. He led the American League with 16 wins in 2021 and a 2.63 ERA in 2023. Cole also paced the majors with 257 strikeouts in 2022 and a 0.98 WHIP in 2023. During that year, Cole also won his first-ever Cy Young award.

In 2024, Cole began the year on the 60-day injured list due to inflammation to his right elbow. He was activated off the IL in June and went 8-5 with a 3.41 ERA (1.13 WHIP) over 17 starts, striking out 99 in 95 innings.

In this year's playoffs, Cole went 1-0 with a 2.17 ERA (1.28 WHIP), striking out 22 in 29 innings over five starts. With Cole as their ace, the Yankees reached the World Series for the first time since 2009 before falling to the Los Angeles Dodgers in five games.

Cole has never made it a secret how much he loves being a Yankee. He was a Yankee fan growing up, and his dream of wearing the pinstripes became reality five years ago.

Cole still loves being a Yankee, as evidenced in part by his remarks in August.

There's no proof suggesting that stance has changed. Ultimately, the Cole opt-out could make him a free agent, but the ball is now in the Yankees' court.