The New York Yankees will have multiple contract situations to figure out this offseason. While none are bigger than pending free agent Juan Soto, right-hander Gerrit Cole can opt out of his final four-year, $144 million deal.

However, if Cole opts out of his contract, the Yankees could void it by picking up the option. Mike Axisa of CBS Sports predicted that to be the case, highlighting the extra year and $36 million that would be added to his contract.

“Cole’s opt-out situation is unique because the Yankees have a say in the matter. His contract allows the Yankees to void the opt out by adding an additional year at $36 million,” Axisa wrote on September 12. “Cole’s contract is nine years at $36 million annually, which was the largest pitching contract in history when it was signed. If he uses the opt out, the Yankees can void by adding a tenth year to the contract…

“Barring major injury between now and the end of the season, Cole will use his opt out and the Yankees will void it by picking up the option. The Yankees traded for Soto with the intention of re-signing him, and pairing him with Cole (and Aaron Judge”) moving forward.”

‘It Makes a Ton of Sense’ for Gerrit Cole to Exercise His Opt-Out

The expectation around baseball is for Cole to exercise his opt-out. Jon Heyman said on a Bleacher Report live stream that he expects Cole to opt out but added that the Yankees will give him that extra year.

“I think the likely scenario is that he opts out,” Heyman said in September. “The Yankees (will) give him that extra year, which they can do.”

For financial purposes, Cole opting out would be a wise decision. At 34, adding that fifth year would see him earn $180 million until he’s 39.

Sports Illustrated’s Pat Ragazzo wrote that Cole’s decision to opt out of his deal “makes a ton of sense.”

“It makes a ton of sense for Cole to exercise the opt-out in his contract. Should he wind up doing so, and the Yankees buy-in, it would increase Cole’s deal to five-years, $180 million,” Ragazzo wrote on September 13. This would make Cole a Yankee through his age 39 season.

“Cole has provided a major impact for the Yankees since signing his mega deal with the team prior to the 2020 season. The 34-year-old has gone 57-27 with a 3.11 ERA, 0.98 WHIP and 901 strikeouts across 122 starts and 739 innings in pinstripes.”

Why The Yankees Should Keep Cole Around

Cole dealt with an arm injury that kept him sidelined for much of the beginning of the campaign.

While he hasn’t been as dominant as in 2023 when he won another Cy Young Award, he’s started to figure it out in recent outings. His latest outing against the Boston Red Sox was one to forget, allowing seven earned runs in 4 1/3 innings pitched, but he had allowed just five earned runs in his prior six starts.

His numbers speak for themselves with the New York Yankees, posting two seasons with a sub 2.85 ERA and 1.00 WHIP.

He’s aging, but outside of his arm injury, he still looks like an ace-caliber arm. If that injury doesn’t come back, he could return to being as elite as he was from 2018 to 2023.