I've got to say, I agree with 700 in regards to the financial part. Whether or not it makes financial sense is immaterial at this point. It's a one year deal. Hell, it's less than one year. The expenditure will not hamstring them to do things in the future.
All that said, I really think, in light of the press coming out afterward, that they had little to no shot. I firmly believe he goes to NY for all the reasons stated if the offers are equal, and I don't think NY lets him slip away, not this year with their problems, especially not to Boston.
So, like I said right after it all happened. Good. Good for the Yankees. Now let's rake the ever living shite out of him if he kicks off the reunion tour in Fenway.