The Yankees signed Andy Pettitte for one more season at a much more realistic contract than last year's $16 million. That was a lot of money for a league average pitcher who might be past his prime. The new contract gives him a base of $5 million with a chance to achieve $11 million by meeting incentives. This is a win/win for the Yankees who keep their fans happy by bringing back a popular player but at a cost that is more in line with what Pettitte is worth.
The Pettitte signing is not a win/win for either Joba Chamberlain or Phil Hughes. Rather than there being two rotations slots open, there is only one. Chamberlain will probably be given every opportunity to win the last slot making Hughes the odd man out. Hughes had made big strides in off-season pitching leagues and seemed poised to reaffirm his potential. For Chamberlain, the signing also gives the Yankees one more knee-jerk opportunity to shove Chamberlain back into the bullpen if the Yankees' relief core struggles.
The Pettitte signing is a loss/loss for Ian Kennedy and Alfredo Aceves. Both have no shot now, barring major injuries, for any starts for the Yankees and it wouldn't be surprising to see either pitcher traded for a centerfielder or catcher if both of those positions falter this year. Aceves showed some pitching savvy for his few starts last year and could be a serviceable big league pitcher. Kennedy, on the other hand, hurt his chances with not only his performances, but also with how he handled them in the eyes of management and his teammates. It is doubtful he will ever pitch for them again unless he rebuilds his career in the minors.
Pettitte is reliable and does give the Yankees a known quantity. He is a good fourth starter for any team. As for Hughes and Chamberlain, the Yankees have probably figured that like the Red Sox, you can never have too many starters available to you.
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