I think I've gone to lengths to show that Ortiz is not worth the 12.5.
Between our pile of aging, bad defensive sluggers, Burrell, Abreu, Matsui, Guerrero, Dunn, Dye, Delgado... how many have been making significantly more than 8 million a year? The best was 28 year old Dunn for a 2/20. Hell, even Ken Griffey JR. hasn't made more than 10 million per year since 2002, and just retired this year.
At best they should offer Ortiz a 1/8 contract with a vesting option for 2012-- that's all he's worth right now. Yes, losing Ortiz/Beltre and VMart will hurt a lot, but odds are, they're retaining atleast one of them, and pick up one or two from Crawford/Werth/Dunn/Konerko. Even considering the guys they're losing, they still have five or six strong offensive pieces with a ton of money to spend, and remember that they made sure to hold onto their trade chips this trading deadline, so they may make a very different splash this offseason.