In a blunt statement by New York Yankees GM, Brian Cashman, he tells Derek Jeter to test the market if he doesn’t like the team’s offer.

“We understand his contributions to the franchise and our offer has taken them into account,” Cashman said. “We’ve encouraged him to test the market and see if there’s something he would prefer other than this. If he can, fine. That’s the way it works.”

Over the weekend, Jeter’s agent, Casey Close, called the negotiations between his client and and the Yankees “baffling”.

Last week, the Yankees reportedly made or are about to make a three-year, $45 million offer to their long-time shortstop.  Jon Heyman of Sports Illustrated has been receiving conflicting reports on the Yankees contract approach for Jeter. He now says that New York is expected to improve on their three-year, $45 million offer.

Earlier today, the Yankees declined to offer Jeter arbitration, so if Jeter tests the market has Cashman said and he signs with another team, New York will not be compensated with any draft picks. Jeter is a Type-A free agent, and had the Yankees offered him arbitration and he went elsewhere, the Yankees would entitled to draft picks.

So what is the market for Jeter outside of the Yankees? It would have to be limited to a major market team where they could offer a chance to make millions more in marketing.  Could Theo offer Jeter $20 million for three years which could sway him to Boston?  Or could Frank McCourt make a huge splash this off-season and sign Jeter who would play for his old teammate and coach Don Mattingly?  I doubt Jeter will go anywhere else but Babe Ruth who is known as a Yankee (and maybe Red Sox) retired with the Boston Braves. So you never know what free agency will bring.

Information from ESPNNewYork.com’s Wallace Matthews was used in this post.