The idea was the the Yankees could save money now by paying Jeter after he retires. That would not only keep their payroll down this season, but it would help them avoid paying the luxury tax now too.
However, Jayson Stark of ESPN reported yesterday that the Yankees are not interested in such a deal. That when they do eventually resign Jeter that the contract will end without extending past his playing days.
It sounded like a good idea to me, but unfortunately it is not going to fly. Maybe if the two sides become deadlocked they could possibly revisit such an idea.