He is under contract. Yankees don't want him playing anymore and told him they would probably release him next year. However ... they gave him the option of becoming a special adviser. Since he is being released from his player contract they have to pay him. He is due $6 mill through the end of this year and either 20 or 21 mill next year. If he chooses to play elsewhere he can sign with any team and that team would only have to pay him the major league minimum and the Yankees would have to make up the difference.
I bet he plays for another team in 2017.