From conversations with two sources, both of whom requested anonymity due to the sensitive nature of the talks, Jeter’s offer is expected to be for three years at somewhere between $15 million and $20 million per season.
The difference between $45 and $60 million is actually quite large. FanGraphs said Jeter’s 2010 performance was worth slightly less than $10 million per year so if the Yankees can keep him somewhere between $45 and $50 million they really wouldn’t be getting ripped off to badly.
He’s Jeter though and despite how much some people are against overpaying him he is worth a lot to the organization. It’s smart to keep him happy as well. Even after he retires he’s still going to be one of the faces of the franchise and they will no doubt have a Derek Jeter Day, possibly a second day to retire his number, and he’ll be a humongous draw at the first Old-Timers Day he attends.
On top of all of that it’s easy to see him as the Reggie Jackson type who is always around the team filling a bunch of roles and being a general ambassador to the team.
The key here is keeping this to a 3-year deal. Jeter experienced a decent amount of decline in 2010. In three years it’s possible that he isn’t worth a whole lot to the team. In four years he could become a burden.