Saw a story that since Pettitte has rejected the $10M offer from the Yankees, the Yankees may now offer him less.  The story is Pettitte was told back in December that if the Yankees went on to add another big free agent (i.e. Teixeira) then the money might not be there for Pettitte.   Now that Andy has said no to the $10M, the Yankees are now going to offer him less.  In my opinion, this does two things – 1) ensures Pettitte will not return (he already has played this all wrong in not accepting the deal on the table in a down market, and there is no way he will now admit defeat and take less), and 2) signals to the other free agents that the Yankees are not going to pay $10M + for league average pitching.

Ulitmately, my guess is that Cashman may look to move one of the outfielders for a veteran innings eater to fill out the rotation.