The 1939 season would be the final time Yankees fans saw the team's starting veteran first baseman Lou Gehrig in action and in the uniform of the team he played for many years, given his declining health. On June 21, the New York Yankees announced his official retirement and proclaimed July 4, 1939, "Lou Gehrig Appreciation Day" at Yankee Stadium. Between games of the Independence Day doubleheader against the Washington Senators, the poignant ceremonies were held on the diamond. In its coverage the following day, The New York Times said it was "Perhaps as colorful and dramatic a pageant as ever was enacted on a baseball field [as] 61,808 fans thundered a hail and farewell". Dignitaries extolled the dying slugger and the members of the 1927 Yankees World Championship team, known as "Murderer's Row", attended the ceremonies. New York Mayor Fiorello La Guardia called Gehrig "the greatest prototype of good sportsmanship and citizenship" and Postmaster General James Farley concluded his speech by predicting, "For generations to come, boys who play baseball will point with pride to your record."

Yankees manager Joe McCarthy, struggling to control his emotions, then spoke of Lou Gehrig, with whom there was a close, almost father and son-like bond. After describing Gehrig as "the finest example of a ballplayer, sportsman, and citizen that baseball has ever known", McCarthy could stand it no longer. Turning tearfully to Gehrig, the manager said, "Lou, what else can I say except that it was a sad day in the life of everybody who knew you when you came into my hotel room that day in Detroit and told me you were quitting as a ballplayer because you felt yourself a hindrance to the team. My God, man, you were never that."

The Yankees retired Gehrig's uniform number "4", making him the first player in history to be afforded that honor. Gehrig was given many gifts, commemorative plaques, and trophies. Some came from VIPs; others came from the stadium's groundskeepers and janitorial staff. Footage of the ceremonies shows Gehrig being handed various gifts, and immediately setting them down on the ground, because he no longer had the arm strength to hold them.