According to the New York Post, Sabathia has agreed to sign with the New York Yankees. Cashman's abrupt trip to California last night would have been hard to explain otherwise. Although it may seem premature since the Yankees have not announced anything, the Post tends to be very well connected, and the article was by Joel Sherman who is a veteran writer. I don't think he would throw it out there unless he had some confirmation.
This is of course big news for the Yankees since this was the piece that needed to fall into place. You can now expect the other free agents to go quicker. Cashman has met with several free agent pitchers including Ben Sheets, Oliver Perez, Derek Lowe, AJ Burnett, and of course Andy Pettitte. It is rumored that Sheets has been offered a 2 year, $26 million contract by the Yankees, and it has been said that the Yankees are willing to go 5 years with Burnett, a huge mistake in my opinion. They are also said to be willing to go 4 years with Lowe. Assuming the Yankees bring back Pettitte, they realistically just need to bring one more pitcher into the fold. However, if they land Sheets, I would feel more comfortable if they brought in someone else. I think Lowe should be the target at this point, because Burnett is a frequent flier on DL airlines. Lowe at his best is not better than Burnett at his best, but I am way more confident that Lowe will pitch the length of his contract with minor problems where I expect Burnett to pull a Pavano, who is the current CEO of DL airlines.
Update 10:36am - Fox news is reporting that the deal agreed to was for 7 years and $160 million.