Its Official

Andy Pettitte has signed for $11.75 million. That's a good deal for him. The article basically says that with the incentives last season he made $10.5 million, and this new contract marks a decent raise for him. So now here's what the Yankees off season has produced (contract figures provided by Cot's Baseball Contracts):

Coming off the Payroll

Johnny Damon: $13 million
Hideki Matsui: $13 million
Andy Pettitte: $10.5 million
Xavier Nady: $6.5 million
Chien Ming Wang: $5 million
Jose Molina: $2 million
Total: $50 million

Players Set to Get Raises

CC Sabathia: $9 million
Derek Jeter: $1 million
Robinson Cano: $3 million
Nick Swisher: $1.45 million
Damaso Marte: $0.25 million
Total: $14.7 million

Acquisitions

Curtis Granderson: $5.5 million
Andy Pettitte: $11.75 million
Total: $17.25 million

Players Traded

Ian Kennedy: 2009 Salary - $408,925
Austin Jackson: 2009 Salary - (??? Minor League Contract)
Phil Coke: 2009 Salary - $403,300
Brian Bruney:2009 Salary - $1.25 million
Total: $2.06 million approximately

Arbitration Eligible Players Set to Get Raises

Melky Cabrera: 2009 Salary - $1.4 million
Chad Gaudin: 2009 Salary - $2 million
Sergio Mitre: 2009 Salary - $1.25 million

2009 Payroll: $201,449,189
2010 Payroll: Approximately $181 million

So far the Yankees have definetely lowered payroll, but there is plenty of wheeling and dealing left. We can also assume that a few million will be added for the arbitration players. The good news is that if the Yankees add $3 million to cover the arbitration raises, they would still be able to add Halladay next season and be under the $200 million mark. However, I doubt the Yankees are done, and after 2010, the payroll would skyrocket back up.