Kat O'Brien spoke with Hal Steinbrenner, regarding the Impacto Deportivo report that the Yankees and Manny were close on a 3 year deal. Steinbrenner told her that if it's happening, he doesn't know about it.

However, this is what I thought was more interesting:

I'm told the Yankees want to keep payroll about what it was in 2008. They could sign Ramirez or Teixeira, but then they would not be able to add another starting pitcher (Pettitte) and stay at payroll. Or they could add Pettitte (or similar pitcher) and sign another hitter. I heard the names Pat Burrell and Jason Giambi (yes, really) mentioned.

Via Tim Dierkes.