Rosenthal said that the Yankees could potentially use him as a replacement for Alex Rodriguez, who is out with a broken hand, this season and they would presumably use him to replace Nick Swisher next season.
The biggest issue for the Yankees will be the asking price though. So far, Joel Sherman of the NY Post reported, the Yankees and Padres have not even gotten to the point where they have exchanged names.
Aside from the asking price, Headley is a good fit for the Yankees. He hits .267/.363/.423 overall, but is much better away from the spacious Petco Park. On the road he hit .277/.380/.484 so far this year. He is also cheap and under team control through next season so he would be a perfect replacement for Swisher.