Despite the fact that it’s a buyers market with a glutton of DH-types still available, Damon and Guerrero are holding out for $5 million each, according to Jayson Stark of ESPN.
On the other hand, the Yankees have been telling people that they only have about $2 million to spend on a DH and would prefer to trade one of their excess starting pitchers for one instead of overpaying on the free agent market.
Aside from those two, there are plenty of other possible DH’s on the market including Raul Ibanez, whom the Yankees have supposedly been interested in. With so many available the Yankees may just extend non-guaranteed contract offers to all of them and see which one accepts. There is no reason to hand out $5 million guaranteed to any of these players.