Yankees Sign Gerrit Cole
The Gerrit Cole sweepstakes has reached an end just over a month after the start of free agency. The Yankees have agreed to sign the ace right-hander to a nine-year, $324MM contract, Jon Heyman of MLB Network reports. It includes a full no-trade clause and an opt-out clause after the fifth year, per Jeff Passan of ESPN.
It’s a historic pact for Cole, a Scott Boras client who has landed the largest deal ever for a pitcher and the second-greatest payday in the history of major league free agency. Cole has smashed the seven-year, $245MM contract righty Stephen Strasburg signed with the Nationals earlier this week, and he nearly matched the $330MM guarantee outfielder Bryce Harper received from the Phillies last offseason. But Harper’s money will come in over 13 years, meaning Cole has easily eclipsed him in average annual value. Cole will take home a whopping $36MM per year.
For the Yankees and general manager Brian Cashman, the addition of Cole brings to an end a years-long pursuit of the Southern California native, who was a fan of the club growing up. The Yankees selected Cole in the first round of the 2008 draft, but he elected to attend UCLA instead. It proved to be a wise decision for Cole, who further improved his stock as a Bruin and wound up as the No. 1 overall pick of the Pirates in 2011.
Cole, who debuted in the majors in 2013, generally thrived in Pittsburgh through 2017. However, the Pirates knew they wouldn’t be able to reach an extension with Cole, so they traded him to Houston prior to the 2018 campaign. The Yankees were among the teams the Astros upended to acquire Cole, which proved costly for New York. Thanks in large part to Cole, the Astros took down the Yankees in this fall’s American League Championship Series, though Houston fell to Strasburg and the Nationals in the World Series.
The Yankees couldn’t beat Cole, but he’ll now join them after he found another gear in Texas. Cole became a truly elite pitcher as a member of the Astros, with whom the flamethrower posted back-to-back 200-inning seasons of sub-3.00 ERA ball. He was particularly amazing in 2019, when he amassed a jaw-dropping 326 strikeouts with a 2.50 ERA/2.64 FIP across 212 1/3 frames. That performance wasn’t enough to defeat then-teammate Justin Verlander for AL Cy Young honors, but it was enough to help earn Cole an absolutely massive payday. This deal blows past the eight-year, $256MM that MLBTR predicted Cole would receive this offseason.
The Yankees now have a lights-out workhorse to accompany Luis Severino, James Paxton and Masahiro Tanaka as their top four starters, and the Cole signing indicates they and owner Hal Steinbrenner aren’t concerned about paying the luxury tax going forward. With Cole’s money factored in, Jason Martinez of Roster Resource estimates the Yankees are on track to spend just under $250MM in 2020, which is without having made any other additions. If that holds up, the Yankees will exceed the highest tax penalty of $248MM next season. Doing so would subject the Yankees to a 42.5 percent overage tax for outspending the threshold by $40MM or more. It’s possible, however, that the Yankees will shave off some of their tax bill if they’re able to trade $17MM left-hander J.A. Happ, a rumored candidate for a change of scenery who now looks all the more likely to exit now that Cole is in the fold.
The Cole pickup represents an act of free-agency aggression that late Yankees owner George Steinbrenner would have saluted. It’s also a sign the Yankees are all-in toward returning to the top of the major league mountain for the first time since 2009. Not only does Cole look as if he’ll greatly strengthen their roster, but it’s a major blow to their biggest AL competition, the Astros. Undoubtedly, Cole’s decision is also an enormous disappointment to both Los Angeles-based teams, who all along joined the Yankees as the most obvious-looking fits to sign him. Those two teams will now have to look elsewhere in a free-agent market that has moved much quicker than in recent years, and has already seen several of its best players sign in a matter of weeks.
While Cole should have a hugely positive effect on the Yankees’ near-term chances, it’s clear this deal presents a sizable risk for the club. Assuming Cole doesn’t opt out after the fifth season, the 29-year-old will pitch almost the entirety of his 30s on this contract. The good news for the Yankees is that Cole has never had anything as major as Tommy John surgery. However, he did miss a large portion of 2016 with injuries, including to his elbow. Cole has since bounced back with three consecutive 200-inning seasons, though signing pitchers to long-term, big-money contracts is nonetheless risky, which will leave the Yankees to hope he continues to hold up as he ages.
Should Cole exercise his opt-out provision in the 2024-25 offseason, the Yankees will have the opportunity to void that decision by extending him for an additional year and $36MM, Ken Rosenthal of The Athletic reports (Twitter link). Cole would need to be willing to walk away from four years and $144MM at age 34 for that clause to be relevant, and the Yankees would likewise need to be willing to pay him a total of $180MM for his age-34 through age-38 seasons to void the opt-out decision. It doesn’t seem particularly likely that the clause will come into play, but in the event that it does, Cole would earn $360MM over a decade-long term with the Yankees.
While all free agents bring some level of concern, that hasn’t stopped Boras from securing a windfall of cash for his clients this offseason. After helping get Harper his contract last year, Boras has seen Cole and Strasburg collect a combined $569MM this winter. He may help negotiate yet another $200MM-plus deal next for third baseman Anthony Rendon, who just took over as the No. 1 free agent available now that Cole’s off to the Bronx.
Yankees Announce Gerrit Cole Signing, Designate Chance Adams
As expected, the Yankees have formally announced their blockbuster deal with free agent starter Gerrit Cole. Fellow right-hander Chance Adams was designated for assignment to create roster space.
A newly clean-shaven Cole is set to be introduced at a press conference today. The club has not confirmed the financial details of the arrangement — it’s reported to come with an eye-popping $324MM guarantee — but did announce the nine-year term of the deal and the post-2024 opt-out opportunity.
As for Adams, 25, he has been with the Yankees organization since he was selected in the fifth round of the 2015 draft. He struggled in his early MLB opportunities, allowing 30 earned runs in just 33 frames over the past two seasons. Adams has spent most of the past three campaigns at the Triple-A level, where he owns a 4.04 ERA with 8.6 K/9 and 4.0 BB/9. The righty once ranked among the organization’s top five prospects and, prior to the 2017 season, was ranked as the No. 81 prospect in the game by Baseball America. Things clearly haven’t panned out as hoped, but Adams does have a minor league option remaining and could hold some appeal to rebuilding clubs in need of pitching depth.
Yankees To Sign Adam Warren
The Yankees have reached agreement on a minor-league contract with righty Adam Warren, per Ken Rosenthal of The Athletic (via Twitter). He’ll receive an invitation to MLB camp as a non-roster invitee. It’s a two-year arrangement, MLB.com’s Mark Feinsand notes on Twitter, which recognizes the fact that Warren is returning from Tommy John surgery.
The contract includes a $800K salary in the event that Warren is able to earn his way onto the big league roster. He can also pick up another $700K in incentives based upon appearances. The deal includes an August 28th opt-out clause, Rosenthal adds, which perhaps suggests that Warren is hoping to rehab on a fairly aggressive timetable from his September procedure.
Warren, 32, first cracked the majors with the Yanks and has spent parts of seven seasons in two prior stints in the Bronx. He pitched for the Padres in 2019, struggling to a 5.34 ERA in 28 2/3 innings with 7.8 K/9 and 3.8 BB/9.
MLBTR Poll: Best $200MM-Plus Contract
When it comes to the money handed out, this has been one of the most active weeks in the history of Major League Baseball. At the Winter Meetings, we saw two right-handers – Gerrit Cole (nine years, $324MM) and Stephen Strasburg (seven years, $245MM) – as well as third baseman Anthony Rendon (seven years, $245MM) secure contracts worth a combined $814MM. All three are clients of super-agent Scott Boras, which makes this a glorious week for him. But which of these deals will work out the best?
Let’s start at the top with Cole, now the highest-paid pitcher the game has ever seen. He’s emigrating from the Astros to the rival Yankees, who finally reeled in their so-called white whale. Led by general manager Brian Cashman, the Yankees had previously chased Cole on multiple occasions, only to come up short. Of course, the 29-year-old Cole would’ve been much cheaper in the past, but he’s now the most expensive player on the Yankees’ roster.
Before Cole signed with the Yankees, Strasburg briefly had the honor of owning the richest all-time payday among MLB pitchers. Strasburg earned that after several stellar seasons in Washington, where he collected World Series MVP honors in 2019 after the Nats took down Cole and the Astros. Washington couldn’t let Strasburg go in the wake of his fall heroics, instead retaining him to keep forming a dominant trio with Max Scherzer and Patrick Corbin. Although Strasburg, 31, is much cheaper than Cole, it’s worth noting he’s a couple years older.
Rendon joined Strasburg as an indispensable part of the Nationals’ 2019 title-winning club, but the Nats weren’t ready to go all-out to keep both of them. As a result, Rendon exited after the Strasburg re-up to accept the Angels’ offer on Wednesday. The Angels hope the 29-year-old Rendon and the game’s best player, center fielder Mike Trout, will help spark a playoff run in 2020 after years of irrelevance.
There’s no going back for the teams that signed Cole, Strasburg or Rendon. All three are locked into their incredibly large guarantees for the foreseeable future. In your opinion, though, which deal will work out the best?
(Poll link for app users)
Whose contract will work out the best?
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Anthony Rendon 50% (10,085)
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Gerrit Cole 39% (7,891)
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Stephen Strasburg 12% (2,355)
Total votes: 20,331
Pitching Rumors: Ryu, Leclerc, Betances, Hader, Thor
Earlier this week, Dodgers president of baseball operations Andrew Friedman told Bill Plunkett of the Orange County Register and other reporters that he has discussed a new deal for Hyun-Jin Ryu with agent Scott Boras. For now, though, Ryu’s under the impression his longtime club isn’t particularly interested in bringing him back. “If the Dodgers wanted to re-sign me, they would have told my agent,” the left-hander said (via Yonhap News Agency). “I haven’t heard from him yet, and honestly, I don’t have much to tell you right now.” Ryu and Madison Bumgarner, another potential Dodgers target, represent the two best free-agent starters left in a market that has lost Gerrit Cole and Stephen Strasburg over the past few days. Should the Dodgers fail to sign either of them, it’s unclear where they’ll turn if they’re determined to land another high-end starter.
- Rangers right-handed reliever Jose Leclerc is generating “a lot of interest” from other clubs, Levi Weaver of The Athletic tweets. That said, it’s not known whether the Rangers are open to trading their most valuable reliever – whom they signed to a team-friendly extension last offseason. The hard-throwing Leclerc, 25, is controllable for five more seasons (including two club options) and is only due a guaranteed $12.25MM over the rest of his deal. That’s one of the reasons he’d likely bring back a quality haul in a trade, which could create a conundrum for general manager Jon Daniels.
- It appears increasingly likely that reliever Dellin Betances‘ time with the Yankees is up. There’s no “active dialogue” between the Yankees and the free-agent righty’s camp, Joel Sherman of the New York Post reports. The 31-year-old Betances was excellent as a Yankee until injuries derailed him in 2019, when he faced a total of two batters. It seems the Yankees have turned their attention to another established reliever, Brewers lefty Josh Hader, whom they’re reportedly pursuing on the trade market. But Sherman throws a bit of cold water on that, writing that the two teams “did not seem to have substantial traction” in talks as the Winter Meetings wrapped up.
- The Mets just added two starters in Rick Porcello and Michael Wacha, giving them at least viable rotation candidates. Those somewhat modest signings won’t affect righty Noah Syndergaard‘s place on the team’s roster, though. GM Brodie Van Wagenen continues to insist the Mets are not going to trade Syndergaard, Sherman relays. In fact, with Jacob deGrom, Syndergaard, Marcus Stroman, Steven Matz, Porcello and Wacha as the Mets’ top six starters, Van Wagenen’s of the belief that they have the deepest rotation in baseball.
Yankees To Re-Sign Brett Gardner
The Yankees have struck a deal with outfielder Brett Gardner, per George A. King III of the New York Post (via Twitter). It’ll pay him a guaranteed $12.5MM. There’s a $2MM signing bonus and $8MM 2020 salary, per MLB.com’s Mark Feinsand (via Twitter). The Yanks also have a $10MM club option in 2021, per MLB.com’s Bryan Hoch (Twitter link), with the alternative of a $2.5MM buyout (via King, on Twitter).
There was never much doubt that Gardner would end up returning to New York. The 36-year-old has already been with the club for a dozen seasons and has been rumored all offseason to be in talks for another. Gardner reportedly drew multi-year interest from other organizations but evidently didn’t have much appetite for change at this point in his career.
It is easy to overlook just how big a role Gardner has played over the years for the Yanks. Excepting his injury-ravaged 2012 campaign, he has appeared in at least 140 games for the team in every season for the past decade. Gardner is one game and five plate appearances shy of tallying 1500 games-played and six thousand PAs with the Bronxn Bombers.
The formula remains much the same now as ever. Gardner is an outstanding defender and baserunner who has consistently delivered league-average offensive production. He has grown into power over the years, though it remains to be seen whether he can repeat last year’s career-high 28 long balls and .503 slugging percentage. (Those stood out even in a year of leaguewide power enhancement.)
The Yankees will certainly need Gardner quite a bit out of the gates with Aaron Hicks slated to miss time. Just how roles will be sorted once Hicks is back will remain to be seen. The health and performance statuses of quite a few other players — including sluggers Aaron Judge and Giancarlo Stanton — will surely factor heavily. Having the dependable Gardner, along with 2019 breakout performer Mike Tauchman, will leave the Yanks plenty of options for filling in or mixing and matching if and when the roster is at full strength.
Photo courtesy of USA Today Sports Images.
Yankees, Dodgers, Mets Reportedly In Market For Josh Hader
With the top end of the relief market going off the board early, teams looking for elite pen arms have been eyeing trade possibilities. The most intriguing of those: star Brewers lefty Josh Hader, who was recently reported to have been made available in talks. Ken Rosenthal of The Athletic recently updated the market situation (subscription link).
Left-handed American League East hitters will be particularly distraught to learn that the Yankees “have been the most active pursuer” of Hader. The Yanks already possess two dynamic southpaws in Aroldis Chapman and Zack Britton. Having already brought in Chapman and Gerrit Cole this offseason, a move for Hader would make a stunning trifecta of high-powered arms.
Other clubs have also put in calls to Brewers GM David Stearns. The list includes the Dodgers and Mets, according to Rosenthal. No doubt a variety of other organizations are also checking in to see whether it might be possible to structure a mutually agreeable trade. Hader could take over as a traditional closer or function as a roving high-leverage out-getter, as suits a given team’s preferences.
Hader’s appeal lies not only in his strikeout-producing left arm, but also his age (26 in April) and contract rights. He’s controllable for four more seasons through the arbitration process. Those won’t come cheap, as Hader projects to earn $4.6MM as a Super Two and could yet attempt to argue for more in a high-stakes hearing. (A prior attempt to shake up the arb system for relievers didn’t work out for Dellin Betances, though Hader has more saves to his record.) Still, it’s a far sight shy of what it would cost to acquire a similar pitcher on the open market — not that it’s even possible to do so.
AL News & Rumors: Yanks, Gardner, Tigers, Chirinos, ChiSox, Rangers
Optimism continues to build regarding a potential agreement between the Yankees and free-agent outfielder Brett Gardner. The Yankees are “hopeful” they’ll finalize a contract soon, Jon Heyman of MLB Network tweets, and Joel Sherman of the New York Post adds that the two sides are “far down the line” in negotiations. With center fielder Aaron Hicks set to miss a large portion of next season after undergoing Tommy John surgery and the Yankees having no established in-house replacements, the need for Gardner – the most accomplished CF option in free agency – is obvious. Although he’ll turn 37 years old in 2020, Gardner remains a valuable all-around contributor and a revered clubhouse presence.
Here’s more on New York and a few other AL clubs:
- The Yankees agreed to sign ace Gerrit Cole on Tuesday. Now they’re interested in free-agent catcher Martin Maldonado, who caught Cole 10 times last season in Houston, Mark Feinsand of MLB.com reports. If he goes to the Yankees, Maldonado would presumably replace Austin Romine – who’s a free agent – and serve as a defensively gifted backup to slugging catcher Gary Sanchez.
- Fellow catcher Robinson Chirinos, who was teammates with Maldonado in Houston, has drawn widespread interest on the open market. The Rockies were already just put on the board along with the Rangers, Astros, Tigers, Rays, and Pirates. You can add the Tigers to the still-growing list of teams eyeing Chirinos, MLB.com’s Jon Morosi tweets. It’s no surprise Detroit’s in on Chirinos, as he may be the top catcher left and general manager Al Avila has made it known the team’s serious about finding an upgrade behind the plate.
- Any catcher the Tigers sign will be managed by Ron Gardenhire next season, but his future’s murkier thereafter. Gardenhire doesn’t have a contract for 2021, and it doesn’t sound as if he’ll be signing an extension this winter. The 62-year-old said Wednesday that he won’t discuss a new deal with Avila until after next season, per Jason Beck of MLB.com. It’s possible, though, that the Tigers will choose to go in another direction by then.
- Several teams have shown interest in free-agent outfielder Kole Calhoun, who hit the market when the Angels declined his pricey 2020 option after the season. It turns out the White Sox had been involved in the race, but they’re now out after acquiring fellow outfielder Nomar Mazara from Texas on Wednesday, according to Bruce Levine of 670 The Score. Between Mazara and Eloy Jimenez, Chicago no longer has a need for a starting-caliber corner OFer.
- The Rangers acquired outfield prospect Steele Walker from Chicago in exchange for Mazara. One day into his tenure with the Rangers organization, Walker has garnered almost as many calls from interested teams as Mazara generated, according to general manager Jon Daniels (via Levi Weaver of The Athletic). However, Daniels added the Rangers do not intend to flip the 23-year-old Walker elsewhere.
AL East Notes: Yankees, Gardner, Red Sox, Luxury Tax, Rays, Relocation
Now that the ink on Gerrit Cole‘s contract is dry, Brett Gardner may be next on the docket, per the SNY Network’s Andy Martino. Though there’s no explicit mention of the Yankees, it’s easy to presume Gardner will return to the Bronx for a thirteenth season. At 35-years-old, Gardner had perhaps the best season of his career in 2019, and he did so while capably manning centerfield for much of it. The slap-hitting Gardner put forth an uncharacteristic power display, smashing 28 home runs with a .503 SLG – just the fourth time he’s ever slugged over .400 and the first time he’s ever eclipsed the .430 SLG mark. Before we get sucked into Yankee-mania again, let’s take a look at what’s happening elsewhere in the AL East…
- The incentives for the Boston Red Sox to slip under the luxury tax line in 2020 are manyfold, per Alex Speier of the Boston Globe. Because of higher penalties for repeat offenders, Boston could save themselves close to $100MM in tax penalties over the course of the next three seasons. Of course, to do so, they’ll need to get under the $208MM tax line. Another benefit takes into account a worst case scenario. Should Mookie Betts sign elsewhere as a free agent next year, the Red Sox could improve their compensation from a pick after the fourth round to a pick after the second round. They could also miss out on a potentially hefty revenue sharing rebate that will come from the phase out of Oakland’s revenue-sharing subsidies. Oakland’s market size has been superseded by lack of revenue, thus placing them among the revenue-sharing recipients, but their free ride is coming to an end. That money will be dispersed among the large-market, revenue-sharing contributors, perhaps proportionately so. That would be a boon for the Red Sox, but they risk forfeiture of the reward if they continue to spend over the tax. Hence, the David Price auction rolls ever onward.
- The once far-fetched idea of splitting time between Florida and Montreal now may be the only way the Rays maintain a presence in Tampa Bay, per Marc Topkin of the Tampa Bay Times. The timeshare agreement won’t likely take effect until 2028. If an agreement can’t be put in place, principal owner Stuart Sternberg is more likely to find a new location for the Rays or sell the team to someone else who will. A full-time move to Montreal is not in the cards, should Sternberg keep the team, as he thinks there are better full-time markets available. Which markets, exactly, is not yet clear. If this timeshare agreement doesn’t come together, however, the Rays may start the search for a new home in earnest. There are many potential snags to the timeshare plan, one of which is that new stadiums would likely have to be built in both markets. It’s hard to imagine how building two stadiums roughly 1,500 miles apart is the best solution, but that’s the plan for now.
Fallout Notes After Gerrit Cole Signing: Blue Jays, Angels, Pettitte, Dodgers, Bumgarner
Much will come to light in the coming days now that the Yankees have officially given Gerrit Cole the largest deal in league history for a pitcher – but even now, mere hours from the revelation, the news is starting to sink in. The rest of the pitching market could unstick rather quickly, and the Blue Jays are having to factor in their new reality of having to face Cole four or five times a year for the next decade, writes Ben Nicholson-Smith of sportsnet.ca. Of course, what better way for Vlad Guerrero Jr., Bo Bichette and friends to push themselves to reach their massive potentials than by facing off with the best of the best. Of greater concern for Toronto is who will take the mound on their side in 2020. With the biggest names now off the board, interest will pick up for the next tier of free agent starters, guys like Hyun-Jin Ryu and Dallas Keuchel, in whom Toronto has shown interest. Those who missed out on Cole may up the ante for the next round, however, putting the Blue Jays’ realistic options more in the field of Tanner Roark, Rick Porcello, or Wade Miley. They could even lend a helping hand to the Yankees by taking back J.A. Happ if a prospect(s) came along with him. Let’s see what else folks are saying here in the wee hours of life in our bleak new post-Cole-sweepstakes reality…
- The winners and losers of Cole’s mega contract are fairly obvious, but The Athletic’s Ken Rosenthal makes the rounds anyway, starting with the Yankees – the biggest winners here (besides Cole and maybe Scott Boras) for finally reeling in their “white whale.” The Angels come away from the Cole saga disappointed, but it’s not all bad for the Halos. They have more need than could have been filled by Cole alone. As tantalizing a talent Cole is, they may be better off spreading their money around. Now that the Giants took Zack Cozart‘s deal off their hands, they might have enough resources to buy a supporting cast for Mike Trout.
- It’s easy to view the Yankees’ winning bid as a harkening back to the days of New York as the evil empire, but the reality is actually much more frightening, per The Athletic’s Marc Carig. He writes, “The Yankees are well-run, well-heeled and well-schooled in the art of reeling in the big fish.” True enough: this was no impulsive spending spree. The Yankees, like much of the league, have curbed their shopping addictions and learned to spend wisely. As a result, they should enter 2020 as favorites to win the American League. Oddly, for years it was expected that Bryce Harper and Manny Machado‘s free agency would wake the dormant goliaths from their winter slumber, but it turned out to be Cole who not only made the notoriously judicious Andrew Friedman plead his case for the Dodgers, but who prompted the Yankees to shake off the rust and woo their western rival’s star player like the old days.
- Speaking of: Andy Pettitte played a role in evangelizing on behalf of New York’s lifestyle benefits. He encouraged Cole about playing in New York as a benefit for his peace of mind, per Joel Sherman of the New York Post. Pettitte’s point was that Cole could focus himself on the task of winning titles, as the playoffs should be an annual guarantee (or at least strong possibility). Of course, the Dodgers and Astros could have made the same argument about their squads.
- The Dodgers, it’s worth noting, made a real push for Cole. Among 324 million other reasons, however, Cole came away from his meeting with New York impressed with new pitching coach Matt Blake, who appealed to Cole’s interest in the intellectual side of the game, noted Carig. Of course, Cole also grew up a Yankees fan, which might have tipped the scale in the Yankees’ favor in a way that the Dodgers simply couldn’t answer. Now that the dust has settled, the Dodgers are moving on to the goal of convincing Madison Bumgarner to make the heel turn and join an already strong rotation in Chavez Ravine, tweets Rosenthal.