Andy Pettitte almost certainly will wind up signing a multi-year contract with either the Yankees or Astros. But another longshot possibility has arisen – that the veteran lefty accepts the Yanks’ arbitration offer. In that scenario, Pettitte would sign for one year, probably in the $14-15 million range, considerably more than the Yanks or Astros have offered annually in their long-term proposals.
Pettitte would risk leaving more than $15 million on the table if he accepted arbitration. The arbitration-settled contract would not be guaranteed until the season begins. Thus, if Pettitte were hurt in spring training, the Yanks could waive him before late March and owe him just one-quarter of his salary. Also, he is coming off a strong year and could pitch worse in 2004, diminishing his negotiating leverage. To this point, it is believed the Astros have offered a three-year deal in the $30-million range. The Yanks have offered a three-year pact in the $33-36 million range. Pettitte is believed to be seeking $14 million or more per season.