As you may have heard, Xavier Nady signed with the Cubs ($3.3mm plus up to $2mm in incentives for playing time). So count him out as a left field or bench option for the Yanks. The Athletics signed Ben Sheets ($10mm plus incentives) which actually has a Yankee impact. Here it is: A’s set money aside for Aroldis Chapman, who went to Cincy. Then they planned to use that money on Sheets or Johnny Damon. With Sheets signed, Oakland is likely out of the Damon sweepstakes, and Johnny just doesn’t seem to have anywhere to go. I’d say the Braves and Yanks are now the most likely to end up with Damon. I wanted the Yanks to sign Ben Sheets before the Vazquez trade, but they saw his injury history as too big of a risk for an 8-digit investment. If Sheets stays healthy, he’ll be one of the star pitchers of the 2010 free agent class alongside Brandon Webb, Cliff Lee, and Josh Beckett.

UPDATE: According to Buster Olney, the Sheets signing hasn’t ended Damon-Oakland conversations.

UPDATE: Conor here. Hey. Anyway, (via MLBTR), Jeff Fletcher is now saying that “Johnny Damon is not looking likely for the Athletics” and that the A’s will now focus on getting a utility infielder. By this point, you have to think that Damon will be a Yankee in 2010. There is no market for him whatsoever, and I just have a feeling that Damon will go to the Yankees with a discount in mind. Granted, he won’t sign for 2 mil, but 6-8 doesn’t seem to be out of the question. Yet again, Brian Cashman has judged the outfield market perfectly.