Four sources said that Damon and the Yankees were talking about a role in which Damon, 37, would get occasional at-bats as a designated hitter and fill in at leftfield, allowing starting leftfielder Brett Gardner to either rest or shift to fill in for centerfielder Curtis Granderson or rightfielder Nick Swisher.

Damon would prefer a job with more guaranteed playing time, two of the sources said, so a deal is not close and far from guaranteed. But there have been multiple conversations between the two sides.

Damon wouldn’t be a bad option as the fourth outfielder if the price is right. Most Yankee fans would welcome Johnny back with open arms, especially if he’s not being asked to play the outfield regularly. This will be interesting to follow. If Damon doesn’t get offered a starting outfield spot with another team, we could see Damon back in pinstripes in 2011.

Where does Damon think he’ll get more money than that?

I wonder if Damon was on board with the Yankees offer and Boras talked him into declining the offer in hopes the Yankees would counter with something higher. Then the Yankees signed Randy Winn and Damon’s return flew out the window. Boras has really underestimated the Yankees desire to keep their payroll down. 

I’m not sure if anybody will offer Damon a contract worth more than $6 million for one year. If the Yankees are willing to give you $6 million, what team will go higher? We are fastly approaching spring training and team needs are diminishing.

There sits Johnny, all alone, with nobody to talk to.

Teams that have been rumored to have interest in Damon include the A’s, Rays, and Jays.

Would Johnny Damon really retire? I can’t imagine it. He’ll either wait it out or he’ll take a lot less money than he intended. Settle with the Yanks, Johnny. Take $2 million and try to get another World Series ring rather than retire or go elsewhere. Your options are limited, but you do have options. The Yankees will gladly take you back if you agree to their terms.

Former Yankees Jerry Hairston Jr., who was recently signed by the Padres, spoke on XM radio today with Jim Bowden and said, “Brian Cashmans going to get mad at me, but Yankees didn’t make me offer because he’s waiting on Damon’s price to come down.” The Yankees are expecting Johnny to come walking back with his tail between his legs. I expect it too. 

Would Damon retire just to save face? Instead of biting the bullet and taking a huge cut in pay, would he just call it a career? A coward would, Johnny won’t.

All along it didn’t seem like Damon would return, but this just about seals the deal. Brian Cashman hasn’t budged on Damon’s overpriced demands. The Yankees have their eyes on Xavier Nady, Reed Johnson, Jerry Hairston Jr, Marcus Thames and Rocco Baldelli to play the outfield. Brett Garnder is currently penciled in as the Yankees starting left fielder.

The left field free agent market is dwindling. Jason Bay signed with the Mets, Marlon Byrd signed with the Cubs, Mike Cameron signed with the Red Sox and Mark DeRosa signed with the Giants. Matt Holliday and Johnny Damon have ridiculous high price tags.  An addition of a “big piece” for left field is becoming increasingly less likely.

Who is still out there for the Yankees to grab that won’t cost a major chunk of cash? Reed Johnson and Jermaine Dye would all be worth a look if their price tags are in the Yankees’ range. Other than those guys, Gardner may be the best option for the Yankees at left field.

Brett Gardner would be a viable outfielder for most teams. He’s an athletic player with outstanding  speed and plays good defense. He will steal bases, have a bunch of infield hits and will hit more triples than home runs. Typically, corner outfielders are more known for their power, but the addition of Granderson in center field allows them to play a guy like Gardner in left. Having Melky and Gardner starting in the outfield would not have made sense. With Granderson in center, Gardner in left works.

The Yankees pride themselves on having a deep lineup with no easy outs. They strive to bring out a lineup that can kill you at any spot in the order. Comparable to the rest of the lineup, Gardner would be an easy out. It’s uncertain how Gardner will do over the course of an entire season. Can he sustain a .270 average over 500 at-bats? That has yet to be determined.

Brian Cashman is always looking ahead. He’s already thinking one, two or even three years down the road. The moves he makes, or doesn’t make, is telling of that. He didn’t pull the trigger on the Santana deal a few years ago because he knew that CC Sabathia would be a free agent the following year. He made a trade for Javier Vazquez because Vazquez has one year left on his contract and if he turns out to be a bust, the Yankees won’t have to live with it long. Vazquez for one year is better than signing a second-tier free agent pitcher like Jason Marquis or Joel Piniero and being tied up with a guy that could be a bust for three years. Cashman can see that the free agent pitching class is stronger next year.

The same thing goes with a left fielder. Cashman doesn’t want to overpay for a left fielder. Holliday and Damon are asking for way too much. That doesn’t fit in with the Yankees’ goal of keep payroll down below $200 million, although it doesn’t look like they’ll be below that mark anyway. The Yankees have a lot of players in-house to deal with next year (Jeter and Mariano) and there are also some big names that could potentially be on the free agent market (Mauer, Crawford and Cliff Lee). Putting a ton of money into Holliday or another left fielder isn’t the best thing for the Yankees to do right now.

Cashman isn’t only worried about the 2010 Yankees. He’s worried about the team for 2011, 2012 and beyond. Joe Girardi is high on Gardner so it looks like we could be looking at him being the opening day left fielder. He was the Yankees 2009 opening day center fielder after all. If the Yankees sign somebody his name won’t be Holliday. If Damon doesn’t find a suitor at the price he covets, the Yankees and Damon could converge on a one-year deal for $5-7 million. I wouldn’t be surprised if Damon drops his price tag by late January if he’s still on the market.

“I don’t think it affects what I can still do. Either they come out and pursue me or they don’t,” Damon told the New York Post. “I still know how to play baseball and will make any team better.”

The Yankees could figure out a way to make it work if they bring back Damon (although I don’t like the idea of having Damon and Granderson in the same lineup), but not on a four-year deal. Two years is the maximum I see the Yankees going. If Damon and the Yankees come to terms, either Melky Cabrera or Brett Gardner become expendable. Finding potential trade suitors for Cabrera of Gardner shouldn’t be hard since some teams have already expressed interest in the young outfielders. 

Nothing but silence has come out of Matsui’s camp meaning they are weighing their options and realistically evaluating the market for slugger. Matsui has to be the Yankees priority over Damon for the mere fact that signing Damon gives the team excess outfielders and without Matsui, the Yankees don’t have a defined DH. The fact that Damon is a better option in left field than Cabrera and Gardner takes a back seat to the Yankees’ unwillingness to give Damon a four-year contract. If Damon’s asking price doesn’t come down to where the Yankees want it, they’ll be content with putting Cabrera in left field and having Gardner as their fourth outfielder.

If Damon lowers his contract standards to two years and Matsui accepts a one-year deal, it’s not out of the realm of possibility that both guys are back with the team next year. The Yankees should be more concerned with brining back the World Series MVP before Damon. 

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