Gerrit Cole opts out of Yankees contract. Will New York pay to void the opt out?

Yankees ace Gerrit Cole officially exercised his opt-out clause, putting New York in a position to either extend his contract by one year and $36 million or let him test free agency. At 34, Cole’s pitching remains dominant, and his past season shows why he’s critical to the Yankees’ plans despite his age. He’s still one of the top pitchers in baseball, delivering the kind of consistent, elite performances few others can match.

Cole’s contract with New York, originally signed in 2019, was a nine-year, $324 million deal that set records for a free-agent starting pitcher at the time. He’s still guaranteed $144 million over the next four years, but by adding the $36 million extension, the Yankees would keep him locked in until 2029, taking him through his age-38 season. This would mean more stability at the top of their rotation, but it also carries the risks of paying top dollar as Cole ages.

The decision deadline is Sunday, giving the Yankees little time to weigh the costs. Hal Steinbrenner and the Yankees front office now need to determine if Cole’s impact in future seasons justifies the added commitment. Opting out of the additional $36 million would free up cash to pursue other high-caliber starters like Corbin Burnes or Blake Snell, but there’s no guarantee they’ll land such talent. With Cole, they already have a known quantity who has led them through postseason battles and pitched to a high level even when working through injuries.

For New York, Cole represents more than just numbers; he‘s a stabilizing figure and a leader in the clubhouse. Letting him walk could send the Yankees into yet another period of pitching uncertainty, something the franchise has struggled with in recent years. Ultimately, keeping Cole could align better with the Yankees’ goal of a championship in the near future, but it’s a high-stakes decision that comes with significant financial implications.