Yeah, the Yankees situation for next year isn't pretty. They currently have five players under contract for an $80+ million hit to their luxury tax salary, and most of them aren't productive any more (A-Rod, Vernon Wells, Mark Teixeira, Ichiro). The one that is, Sabathia, is in decline and has been below league average this year.
They have 9 players headed to arbitration but most of them are replacement level players (Nix, Lillibridge, Nunez, Cervelli, Stewart). They don't have a particularly strong class of upper level prospects and it isn't a very good free agent class outside of players they'll be losing and have to re-sign just to continue being the roughly .500 team they currently are.