Per Buster Olney, Sabathia has agreed to a one year extension (for the 2016 season) at $25 million, with a $25 million team option for 2017 that has a $5 million buyout. The extension thus guarantees him at least $30 million for one extra year, and could be $50 million for two. Depending on whether the Yankees exercise the option or not, they are now on the hook for $122 million over five years or $142 million over six years.
Sabathia was expected to opt out, be the #1 free agent pitcher this offseason, and re-sign with the Yankees, in that order. The Yanks and Sabathia apparently decided to cut to the choose and forego the opt-out/pretend to be considering leaving drama.