Joel Sherman of the Post is reporting (tweeting?) that the Yankees have decided not to offer arbitration to any of their free agents.
UPDATE, 5:03 p.m.: A few minutes later comes official word from the Yankees: The Yankees announced today they will not offer arbitration to any eligible players (OF Johnny Damon, INF/OF Jerry Hairston Jr., INF/OF Eric Hinske, DH Hideki Matsui, C Jose Molina, OF Xavier Nady and LHP Andy Pettitte).
Not a big surprise. I thought Damon was a possibility, but the Yankees probably have a better feel for just how much Damon would have made in arbitration. I still don’t think it would have been the worst-case scenario, but there would have been some risk involved. None of the others made sense as arbitration possibilities.