Wow. Just wow.
This is one massive deal:
Breaking: Gerrit Cole to Yankees. 9 years. 36M per. 324M total.
— Jon Heyman (@JonHeyman) December 11, 2019
Source confirms: Cole to #Yankees, nine years, $324M. First reported: @JonHeyman.
— Ken Rosenthal (@Ken_Rosenthal) December 11, 2019
From the outset of the offseason, almost everyone picked the Los Angeles Angels as the favorite to land Gerrit Cole – possibly one of the most attractive free agent pitchers in the history of MLB – but the Yankees kept on telling us they weren’t going to let this one get away and they sure didn’t.
Cole is signing a record-breaking, almost hilariously enormous 9-year, $324M deal, putting him right up there with the largest contracts of all-time, pitcher or otherwise (indeed, only Bryce Harper, Mike Trout, and Giancarlo Stanton got more).
And at $36M annually, Cole has tied the record for highest average annual value in a deal. That’s just nuts.
Gerrit Cole’s total guarantee breaks David Price’s previous record for a pitcher by *$107M.* His average annual value of $36M is also a record for a pitcher, and matches Mike Trout’s AAV in the new money he received in his extension with the #Angels.
— Ken Rosenthal (@Ken_Rosenthal) December 11, 2019
With an average annual value that high – even for a pitcher as good as Cole – it’s difficult not to think about those rumors of the Luxury Tax being dramatically increased or even eliminated in the next CBA.
As for the impact, well, there’s potentially a lot.
The Angels, most notably, may soon turn their attention to Anthony Rendon, as they’ve seemingly been signaling all day. They still have a ton of money to spend and a desire to spend it, not to mention the fact that they opened up a hole at third base with a dollar-saving trade of Zack Cozart to the Giants this afternoon. Of course, the Dodgers were also reportedly keen on signing one of the big three free agents (Rendon, Cole, Stephen Strasburg), so with two of them off the table, the heat on Rendon could tick up.
The Angels have also been connected to Red Sox pitcher David Price, but it’s not exactly clear where those rumors are heading yet.
Relatedly, the Dodgers could soon turn their attention to Madison Bumgarner, as Ken Rosenthal reports, who’s been a top target for several teams (White Sox, Twins, a number of others), after Stephen Strasburg and Zack Wheeler signed earlier this winter.
Ultimately, though, this deal *will* kick a lot into motion. Gerrit Cole was always going to get massive dollars from one of the markets biggest spenders and each of his realistic suitors were likely waiting to coordinate their other moves around this decision. Now that it’s done, things can move quickly. Fortunately for the Cubs, who are still awaiting the results of Kris Bryant’s grievance, the decisions of Anthony Rendon and Josh Donaldson may be of greater importance and have yet to be completed.
Then again … the Angels and Dodgers may want to push that leftover Cole cash somewhere fast, and both have been connected to Rendon. Stay tuned.
UPDATE: Additional details, including an opt-out after 2024 (five years into the deal), a no-trade clause, and no deferrals:
Cole’s opt-out is after the 2024 season, per source.
— Mark Feinsand (@Feinsand) December 11, 2019
Cole’s deal includes a full no-trade clause, per source.
— Mark Feinsand (@Feinsand) December 11, 2019
none of the money on Cole’s deal is deferred. He received a no-trade clause #Yankees
— Joel Sherman (@Joelsherman1) December 11, 2019
What a contract.