Update: Ken Rosenthall is reporting that Philadelphia will receive Roy Halladay & $6m from the Blue Jays, Phillipe Aumont, Tyson Gillies, and a 3rd player from the Mariners in exchange for sending Cliff Lee to Seattle. The Blue Jays will receive elite pitching prospect Kyle Drabek, Michael Taylor, and Travis D'Arnaud from Philadelphia.

The extension being talked about for Halladay to waive his no trade clause is a 3 year deal worth $60 million which would be a great deal for the Phillies and well below what Halladay's free agent value would be.

Roy Halladay may finally be on his way out of Toronto.

Ken Rosenthall is reporting that the Phillies & Blue Jays are working on a three team trade that would send Halladay to the Phillies in exchange for prospects that will be acquired by sending Cliff Lee to a 3rd, as of yet unnamed team.

There's speculation that the Angels are the 3rd team in the deal, attempting to acquire Lee to replace soon to be departing John Lackey.

Update: Sports Illustrated Jon Heyman is reporting that the 3rd team is actually the Seattle Mariners & the deal is close to completion. The Phillies are currently trying to "lock up" Halladay.

Naturally a deal including two Cy Young award winners in the prime of their careers is going to be fairly complicated.

Lee is only under contract for one more year at $9 million and has informed the team that he won't be giving them any type of discount to resign. Halladay, however, reportedly will be willing to sign a contract extension in exchange for waiving his no-trade  clause & would be willing to take less money to play for a contender that trains in Florida.

To add even more fuel to the suddenly blazing hot stove rumor, the Philadelphia Inquirer is currently reporting that Halladay & his agent are in Philadelphia, presumably to work on an extension in advance of announcing a completed trade.

If the Phillies can manage to get Halladay locked up on a multi-year deal, without giving up all of the top prospects that were being discussed at the trade deadline, it would be a master stroke.

As we've seen previously with Halladay trade rumors, nothing is finished until the ink is dry so we'll keep you up to date

Buster Olney of ESPN.com reports that Blue Jays RF Alex Rios has been claimed on waivers by a unknown team The Blue Jays now have 3 things they could do:

• They can give the claiming team Rios and is humongous contract.
• They could work out a trade with the claiming team.
• They could also just pull Rios off of waivers completely.

Rios still has 6 years left on a seven-year, $69.35 million contract that he signed in April 2008..

The following teams have reportedly did not claim Rios:

• Mets
• Red Sox
• Giants
• Reds
• Mariners

We will keep everyone updated once more information comes out.

As you know, July 31st is known as the trade deadline. But in fact, teams can still acquire players after that, however the players involved in a trade must first pass through waivers.

When players are placed on waivers, any of the 29 other teams can claim him which usually results in the player's current team pulling him back off waivers. In some rare instances, teams will in fact allow players to leave via waivers although the more usual scenario is that teams will work out a trade for that player during the 48 hour window they're given to negotiate.

If a player passes through waivers unclaimed, he can then be traded to any team at any time. However, a player must be on a team's active roster by August 31st in order to be eligible for post-season play.

Now that we've explained the process, who are some of the players we might still see traded this year?

ESPN's Jerry Crasnick gives these starting 9 (which actually includes 14 players)  as the most likely to be dealt:

1. Jon Garland & Doug Davis
2. Heath Bell
3. Lyle Overbay
4. Justin Duchscherer
5. The "Matt Stairs" type which Crasnick says this year includes Nomar Gargciaparra and Kevin Millar
6. The "utility man" category under which Crasnick files David Eckstein, Mark Teahen, and Jamey Carroll.
7. Carl Pavano
8. Reds Relievers of Arthur Rhodes and David Weathers
9. Miguel Batista

Heath Bell would obviously the biggest target on this list and as Crasnick mentions, would probably be claimed. However, even if he's claimed by a team that's not in contention, the Padres may be able to work out a deal.

That being said, I think Rhodes or Weathers are the much more likely releivers to be dealt.

There are also plenty of contending teams that could use a back of the rotation starter like Pavano, Davis, or Garland so I wouldn't be surprised to see their names pop up on several different radars.

We also always seem to hear about one BIG name that passes through waivers making them elligible to be dealt (Manny was put on waivers a couple years back) but deals that big usually happen before August if they're going to happen at all.

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The trade deadline has come and gone and left a TON of trades in it's wake. We've compiled a list of all the trades that occurred during the entire month of July in one giant trade recap. One interesting note, unless I've missed something, 27 of the 30 teams completed at least one trade last month. The Astros, Angels, and Rangers were the thre teams to stand pat in July.

• The Cubs traded for Jeff Baker from Colorado for Alberto Alburquerque.
• The Indians traded Joan Meloan from the Rays for Winson Abreu.
• The A's traded Ryan Webb, Greg Italiano, and a PTBNL (Sean Gallagher) for Scott Hairston from the Padres.
• The Orioles traded Ryan Freel to the Royals for a PTBNL.
• The White Sox acquired Tony Pena from Arizona in exchange for Brandon Allen.
• The Royals acquired Yuniesky Betancourt from Seattle for Danny Cortes and Derrick Saito.
• The Mets and Braves made a straight up trade of Ryan Church and Jeff Francoeur.
• Seattle acquired Jack Hannahan from the M's for Justin Souza.
• The Brewers traded for Felipe Lopez from the Diamondbacks for Cole Gillespie and Roque Mercedes.
• The Orioles and Padres made the second straight up trade of Oscar Salazar and Cla Meredith.
• With the third straight up trade, the Cards sent Chris Duncan to Boston for Julio Lugo. Lugo was recently DFA'd by the Red Sox.
• The Red Sox added another left-handed bat when they acquired Adam LaRoche from the Pirates for Hunter Strickland and Argenis Diaz.
• The Cardinals acquired slugger Matt Holliday for Brett Wallace, Shane Peterson, and Clayton Morentsen.
• The Giants trade Scott Barnes to the Indians in exchange for Ryan Garko.
• The Pirates and Mariners made a 7 player deal that sent Jack Wilson and Ian Snell for Jeff Clement, Ronny Cedeno, Nathan Adcock, Brett Lorin, and Aaron Pribanic.
• The Reds acquired Wladimir Balentien from Seattle in exchange for reliever Robert Manuel.
• The Yankees acquired Jason Hirsh from the Rockies for a minor leaguer and released Brett Tomko to make room.
• The Phillies traded for Cliff Lee and Ben Francisco for Carlos Carrasco, Jason Donald, Lou Marson, and Jason Knapp.
• The Giants acquired Freddy Sanchez from the Pirates in exchange for Tim Alderson.
• The Royals acquired Josh Anderson for cash considerations after he was DFA'ed by the Tigers.
• The Dodgers acquired George Sherrill from Baltimors for Josh Bell and Steve Johnson.
• The Cubs acquired both Tom Gorzelanny and John Grabow from the Pirates for Kevin Hart and Jose Ascanio.
• The Tigers acquired Jarrod Washburn for Luke French and Mauricio Robles.
• The Dodgers and Brewers swapped Vinny Rottino and Claudio Vargas.
• The Red Sox made the biggest trade by acquiring Victor Martinez in exchange for Justin Masterson, Nick Hagadone, and Bryan Price.
• The Blue Jays acquired Sean Smith from the Pirates for future considerations.
• The Yankees added Jerry Hairston Jr. from Cincinatti for minor leaguer Chase Weems.
• The Red Sox then went ahead and traded Adam Laroche to the Braves for Casey Kotchman straight up.
• The Marlins traded for Nick Johnson in exchange for Aaron Thompson.
• The Rockies added two pieces to their bullpen, a righty and lefty. Joe Beimel and Rafael Betancourt.
• The White Sox acquired Jake Peavy surprisingly and they traded Aaron Poreda, Clayton Richard, Dexter Carter, and Adam Russell for him.
• The Reds and Blue Jays exchanged third basemen, with Scott Rolen going to Cincinatti in exchange for Edwin Encarnacion, Josh Roenicke, and Zach Stewart.
• The Twins got Orlando Cabrera from the A's for Tyler Ladendorf.

Update 7-31:

Jon Heyman is reporting that the Reds have officially traded for Scott Rolen, all that remains is for Rolen to waive his no trade clause.

Bob Elliot of the Toronto Sun reports that the Cincinnati Reds have a "good chance" of trading for Toronto Blue Jays third baseman Scott Rolen.

While the Reds are out of contention this year, Rolen is under contract for next year at a price of $11 million.

The details of the likely deal haven't been publicized although according to Fox Sports' Jon Paul Morosi, Reds third baseman Edwin Encarnacion would likely be headed to the Jays in any deal for Rolen.

The Reds would also likely ask the Jays to assume some of Rolen's contract for next season in order to facilitate the trade.

Update III:

Ken Rosenthall of FoxSports is now reporting (and others are confirming) that the deal has been made final and does include Knapp, Carasco, Donald, and Marson. The Indians are also apparently including Ben Francisco in the deal as well, presumably in order to convince Philadelphia to include Knapp in the deal.

Several scouts have called Knapp a "Halladay" clone, and consider his upside better than Drabek's although he will likely take slightly longer to reach the majors.

It's tough not to like this deal for the Phillies as they've acquired a true ace, without giving up Happ, Drabek or Brown.

The big losers in this deal? The Toronto Blue Jays who have just lost all sorts of leverage. Expect the Red Sox to make a hard late push to pry Halladay loose from their division rivals.

Update II:

Gordon Edes and Tim Brown of Yahoo are reporting that the trade is close but not finalized yet. They agree with Ken Rosenthal that Jason Knapp is also included in the deal which would make it a much more believable trade.

Update:

Jeff Blair spoke to an AL scout who was reportedly stunned by the trade report & has a hard time believing the three prospects were enough for the Phils to pry Lee loose.

It certainly would be a major coup for the Phillies to acquire Lee without giving up Happ, Drabek, or Brown although the earlier report by ESPN's Jayson Stark said the Phils insisted it was possible to get a deal down without involving them.

If the deal is legit I would expect to hear confirmation from other sources soon.

The Philadelphia Phillies have acquired Cleveland Indians ace Cliff Lee according to one minor league source.

The Phillies abruptly scratched AAA starter Carlos Carasco and have reportedly packed Carasco with fellow prospects Marson and Donald for the left handed Lee.

ESPN.com reported earlier that an official with the Indians felt that a trade involving Lee was imminent.

If the reports are accurate (and there's no reason at this point to doubt them) this would certainly seem to end the Phillies pursuit of Toronto ace Roy Halladay.

We'll keep you up to date as confirmation and more details roll in.

With negotiations for Roy Halladay seemingly at a stand-still, the Philadelphia Phillies are reportedly targeting Cleveland Indians ace, Cliff Lee.

With the Blue Jay's asking price sky high for Halladay, Lee has emerged as a VERY popular trade target, with everyone from the Rays, to Red Sox, to Rangers, and now the Phillies trying to acquire the left handed ace.

The Indians are obviously looking to capitalize on the high demand and are apparently asking for several prospects in return, however, the Phillies apparently wouldn't have to include top pitching prospect Kyle Drabek.

While not quite as dominant as Halladay this year, Lee has been very effective going 7-9 with a 3.14 ERA and is under contract for year at a price of just $8 million (or roughly half of what Halladay is due).

It certainly would make sense for the Phillies to have a backup plan in case they don't land Halladay and it also gives them a bit more leverage with Toronto. Jays GM J.P. Ricciardi has constantly insisted that the Jays don't have to trade Halladay, but he'd be a fool not to as Halladay's value plumets once the clock strikes midnight this Friday.

I wouldn't be surprised if this report of the Phillies pursuing Lee didn't get the Halladay to Philadelphia talks rolling once more.

Cleveland for their part seems to be playing the situation quite well. They can either wait until Halladay is delt and operate from a position of power holding the only remaining ace available, or they can snatch up one a package of top prospects while Toronto continues to play hardball.

According to a report out of the Dominican Republic, the Philadelphia Phillies are close to signing vertern pitcher Pedro Martinez for $4 million.

Pedro had a private workout for the Phils and has been looking for a team for weeks now.

Phillies beat writer, Todd Zolecki reports that GM Ruben Amaro Jr. declined to comment when asked about the report.

If the Phillies are willing to pay Pedro $4 million for the rest of the season I've got a bridge they might be interested in. And, since there has been little interest from other teams and it would seem the Phillies are only bidding against themselves in this situation.

Those two points seem to call the report into question (I don't speak or read Spanish but feel free to evaluate it for yourself) but GM's usually have no problem blasting outlandish or incorrect reports so Amaro's "no comment" would seem to be significant.

Amaro made news earlier in the week by saying the team had flexibility to trade for an ace (read as Roy Halladay) and I certainly don't think with his history of injury & inconsistency that signing Pedro would pull the Phils out of the market for starting pitching.

While the focus of the baseball world is on the Roy Halladay rumors, the Jays made other news today by releasing struggling closer, B. J. Ryan.

Ryan had taken issue publicly with his work-load lately and was obviously frustrated with the situation. Similarly, the Jays were frustrated with getting a sub-par performance from the reliever, who has only 2 saves this year with a bloated 6.53 ERA.

Unfortunately for the Jays, they're still on the hook for the remainder of Ryan's contract which pays the former close $12 million this year and $10 million next year.

Despite Ryan's poor performance, I'd expect a contending team to give him a shot at the league minimum.

Here's a quick rundown of some of the free agent signings that you might have missed in the midst of all the Sabathia, Yankees, Mets madness lately.

The Cincinnati Reds signed reliever Arthur Rhodes to a 2 year deal worth $4 million. The veteran lefty put up impressive numbers last year, pitching in 61 games with the Mariners and Marlins and going 4-1 with a 2.06 ERA.

The Minnesota Twins re-signed infielder Nick Punto to a 2 year deal worth $8.5 million. The infielder batted .284 with 2 long balls and 28 RBI in 99 games for the Twins last year and will likely be the team's starting shortstop going forward.

The Toronto Blue Jays gave Matt Clement a minor league deal with an invitation to Spring Training. The pitcher hasn't appeared in a major league game for two years due to injury but if healthy, could be a great cheap option for the Jays rotation.

The White Sox agreed to a 4 year deal worth $10 million with 19 year old infielder Dayan Viciedo. The former Cuban League All-Star, Viciedo, is expected to compete for the starting third base job and the White Sox project him as an impact player for years to come.

The Washington Nationals re-signed journeyman outfielder Willie Harris to a two-year, $3 million deal. Harris had a career year in terms of home runs (13) and runs driven in (43) after getting a chance to be an everyday player in the second half of the season.

The Pitsburgh Pirates inked infielder Ramon Vazquez to a two-year, $4 million deal. Vazquez will likely be a super-sub and could also act as an insurance policy should the Pirates find a taker for shortstop Jack Wilson or 2nd baseman Freddy Sanchez but the market has been pretty weak for Wilson (especially with Lopez and Punto both filling middle infielder needs).

Infielder Felipe Lopez signed on with the Arizona Diamondbacks, agreeing to terms on a one-year, $3.5 million deal. Lopez resurrected his career last year in St. Louis, batting .385 over 156 at bats after being released by the Nationals. He'll likely replace the Orlando Hudson as the D'backs every-day second baseman and could prove to be one of the most under-rated signings of the winter.

The Kansas City Royals signed reliever Kyle Farnsworth to a two year deal, reportedly worth $9.5 million. Farnsworth had a  3.65 ERA in 45 games with the Yankees but struggled after being traded to the Tigers, putting up a 6.75 ERA in 16 games.