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On March 9, 2008, Ponson signed a minor league contract with an invite to spring training with the Texas Rangers. Ponson began the 2008 season with the Triple-A Oklahoma RedHawks. On April 26, his contract was purchased.

On June 6, 2008, despite having a 4-1 record and 3.88 ERA for the season, Texas abruptly designated the starter for assignment. He was placed on release waivers on June 16. Rangers general manager John Daniels acting on direct orders from Owner Tom Hicks explained, "We don't feel Sidney deserves to be here or wants to be here. We're not going to get into details other than to say we're clearly trying to put together a team here, in a true sense of the word. Based on some recent comments and other such things, it was pretty clear that he did not want to be part of that, and it's something we're not going to tolerate."[3]

On June 18, Ponson signed a minor league deal with the New York Yankees. He is currently on the Yankees roster and made a start on June 27, 2008 in the subway series with the Mets. Ponson pitched 6 shutout innings in his first start back with the Yankees, which they eventually won 9-0.