The Texas Rangers placed Vincent Padilla on outright waivers yesterday, one day after he returned from the disabled list only to last 3 2/3 innings while beaning Mark Teixeira twice.

Padilla, who had been targeted to fill the second spot in the Rangers rotation, has expressed a strong desire to stay with the team, according to the Dallas Morning News.

And, while any team will have until noon today to claim the hurler, they would then be on the hook for the more than $8 million that remains on Padilla's contract. It seems unlikely that any pitching starved team would be willing to shell out that kind of money for a pitcher who's 3-3 with a 5.57 ERA.

The New York Yankees have reportedly reached an agreement with free agent first baseman Mark Teixeira on an eight year deal worth $180 million.

The Yankees' bitter rivals, the Boston Red Sox had been favored to land the slugger but the Bronx Bombers once again won the war of the pocketbooks. Teixeira's deal takes the Yankees' off season tab up to $423.5 million to three players over an 8 year period, and also gives the team famous for it's spending, the 4 highest paid players in the game (Teixeira, Sabathia, Jeter, and Rodriguez).

Teixeira, who hit .308 with 33 home runs and 121 RBIs last year, should passify Yankee fans who had been clamoring for the team to replace the offensive output of departing free agents Bobby Abreu and Jason Giambi. Defensively, "Tex" will take over first base, moving the recently acquired Nick Swisher back into a crowded outfield. Along with Swisher the Yankees also have Hideki Matsui, Johnny Damon, and Xavier Nady competing for the two corner positions in the outfield and possibly the DH if Jorge Posada can bounce back and be an every day catcher.

Asside from the Washington Nationals and Red Sox who had been previously expected to land Teixeira, the Brewers and the Blue Jays also have their compensitory draft picks pushed back a round with the Los Angeles Angels now getting New York's first pick as well as a pick in the supplementary round between the first and second round of drafting. The pick will likely be little consolation to Angels fans who are once again faced with a lineup lacking power and without protection for Valdamir Guererro.

The New York Yankees continued their offseason spending spree, signing former Blue Jay, AJ Burnett to a 5 year deal worth $82.5 million. The Yankees appear to be capitalizing on the down turn in the economy, going on a historic spending spree while the rest of the league has been cutting costs and keeping a sharp eye on their bottom line. Earlier this week the Yanks inked CC Sabathia to a 7 year, $161 million deal, the largest ever contract for a pitcher. The latest signing is pending a physical which is usually a formality, however, with the injury prone Burnett there are no guarantees. Once the deal is finalized, Toronto will receive the Yankees 2nd round pick as well as a supplemental pick as compensation for losing Burnett, a type-A free agent.

The Atlanta Braves were the Yankees' biggest competitor for Burnett's services, and had reportedly tacked a 5th year onto their initial 4 year offer. Burnett, however, apparently wanted to wear pinstripes, passing up the Braves' offer which may have been for even more money. Atlanta will likely turn their interest to former Brewer, Ben Sheets, in their continued efforts to rebuilt their starting rotation behind ace Tim Hudson.

If you thought committing a total of $243.5 million over the next 7 years would take the Yankees out of shopping mode, think again. The New York Post reports that they've now joined the bidding for first baseman Mark Teixeira, with Manny Ramirez as a backup option should they lose out on the switch hitting first baseman. The possibility of Manny in pinstripes is sure to send fans of the Yankees/Red Sox rivalry into a hot-stove frenzy.

While the Yankees' spending spree seems excessive, especially in comparison to the rest of the league's spending, they also have $75 million coming off the books due to departing free agents and Mike Mussina's retirement. Sabathia's $23 million annual average essentially replaces Jason Giambi's $23.45 million, Burnett's $16.5 million is just slightly more than Abreu's $15 million, and that still leaves roughly $36 million that had been taken up by Mussina, Carl Pavano, and Andy Pettitte. Even if the Yanks give Teixeira the $20 million per year he's seeking, they'll still have money to get some bullpen help and pay for the $11 million in buyouts due to Giambi and Pavano.

If all of that weren't enough, the Yankees will also be moving into their new stadium which will generate even more money for the richest team in the league. Also, MLB rules allow teams to deduct stadium construction costs against their profit sharing revenue which means that the $1.3 billion stadium will allow the team to save even more money. So, while the so-called "Evil Empire's" impressive spending spree is sure to infuriate Yankee haters around the league, they may have higher profits and a lower payroll than the did last year. It's tough to argue with that, especially in this economy. For a great article on the financial implications of the Yankees new stadium, check out this article in the New York Times.

The San Francisco Giants have reportedly inked reliever Bob Howry to a one year deal worth $2.75 million. The 35 year old righty had put up 4 solid years of sub 3.4 ERA relief before last year's 5.35 effort for the Chicago Cubs. I'm guessing Howry is hoping to re-establish himself and ink a multi-year deal next winter, and the Giants for their part could be getting a very good reliever at a bargain price if Howry can regain is previous form.

The Giants are also reportedly very close to finalizing a deal for short stop Edgar Renteria and also appear to be pursuing a trade for the Marlins' Jorge Cantu. It appears the 2 year, $18 million contract mentioned last week might wind up being accurate for Renteria.

If Renteria does end up signing for $9 million a year, it would certainly seem to signal that the Giants believe they can win sooner rather than later. While the team does have the benefit of playing in the NL West where 84 wins was good enough to take the title last year, they're going to need to drastically improve their offense if they're going to make the 12-15 win jump it will take to be competitive. I don't care how good your pitching is, if Bengie Molina is your team's most productive offensive player, you've got some problems. If the Giants are in win now mode, I wouldn't be surprised to see them make a play to land Manny Ramirez or Mark Teixeira.

Teams have until midnight eastern time tonight to extend offers of arbitration to their free agents and I'll be updating this page as often as news becomes available about teams' arbitration actions.

Update

The offers are all in, and according to the AP only 24 players were offered arbitration. The list is as follows:

American League

• Boston Red Sox - Paul Byrd, rhp; Jason Varitek, c.
• Chicago White Sox - Orlando Cabrera, ss.
• Kansas City Royals - Mark Grudzielanek, 2b.
• Los Angels Angels - Jon Garland, rhp; Darren Oliver, lhp; Francisco Rodriguez, rhp; Mark Teixeira, 1b.
• Minnesota Twins - Dennys Reyes, lhp.
• Seattle Mariners - Raul Ibanez, of.
• Texas Rangers - Milton Bradley, dh.
• Toronto Blue Jays - A.J. Burnett, rhp.

National League

• Arizona Diamondbacks - Juan Cruz, rhp; Orlando Hudson, 2b; Brandon Lyon, rhp.
• Cincinnati Reds - David Weathers, rhp.
• Colorado Rockies - Brian Fuentes, lhp.
• Los Angeles Dodgers - Casey Blake, 3b; Derek Lowe, rhp; Manny Ramirez, of.
• Milwaukee Brewers - CC Sabathia, lhp; Ben Sheets, rhp; Brian Shouse, lhp.
• New York Mets - Oliver Perez, lhp.

Reds

The Cincinnati Reds have reportedly offered arbitration to reliever David Weathers (type B) who pitched in 72 games wracking up an ERA of 3.25 with 19 holds.

White Sox

The White Sox have not offered arbitration to free agents Juan Uribe or Ken Griffey Jr (type B) but have made an offer to Orlando Cabrera (type A).

Astros

The Astros did not extend offers to Doug Brocail (type A) or Randy Wolf and Mark Loretta (type B). The 'Stros had been in negotiations to resign Wolf although negotiations have stalled in recent days.

Phillies

The Philadelphia Phillies have passed on arbitration for Pat Burrell and Jamie Moyer (type A) as well as Rudy Seanez (type B) and Tom Gordon (unranked). Burrell hit 33 homeruns with 86 RBI and a batting average of .250 and would have likely been awarded a raise on the $13.25 million salary he earned last year. One has to wonder if the D'backs lack of an offer to Adam Dunn influenced the Phillies descision as the two players have similar stats at the plate and limitations in the field.

Moyer appears likely to return to the Phils but again, the team opted not to risk having his price set by a 3rd party arbiter.

Marlins

The Florida Marlins have apparently declined to offer arbitration to Arthur Rhodes, Paul Lo Duca, and Luis Gonzalez (all type B free agents). There seems to be a trend emerging of teams being fairly careful with their arbitration offers this year as Rhodes has had more several teams express interest and, in my opinion would have been worth extending an offer to.

I've got to wonder if this is a product of the economy and perhaps an indication that free agent spending will be down this year as well. Obviously the top tier players such as Sabathia, Teixeira, and Manny Ramirez will be offered huge deals (or in Sabathia and Ramirez's case, already have been) however, it looks like the rest of the free agents might encounter a few more money conscious teams this off-season.

(via MLBTradeRumors.com)

Rangers

The Texas Rangers offered arbitration to type B free agent Milton Bradley, but not unranked free agents Jamey Wright, Ramon Vazquez or Jason Jennings. Bradley made the All-Star team and batted .321 with 22 HR and 77 RBI in 126 games. I would be surprised if he didn't receive a 3 year offer after his performance last year, with teams like the Mets, Phillies, Blue Jays, and Cardinals possibly in the mix.

Cubs

The Chicago Cubs did not offer arbitration to free agent relievers Bob Howry or Kerry Wood, both type A free agents. The club had been expected to offer Wood arbitration but apparently did not want to risk the closer accepting the offer. Wood saved 34 games last year with a 3.26 ERA and would likely have been awarded a raise on his $4.2 million salary. Howry had a much less successful year, putting up a 5.35 ERA over 72 appearances and also might have accepted arbitration, possibly resulting in the Cubs paying him $4.5 million for another year.

The lack of offer to Wood makes him even more attractive to teams seeking an elite closer, especially considering that both Fuentes and Francisco Rodriguez were offered arbitration.

Diamondbacks

The Diamondbacks have reportedly offered arbitration to free agent Orlando Hudson, Juan Cruz (type A), and Brandon Lyon but surprisingly not Adam Dunn. The team also did not offer veteran pitcher Randy Johnson (type B), or David Eckstein and Tony Clark (did not qualify) arbitration although none of those moves came as a surprise. The decision on Dunn again, makes absolutely NO sense to me. While he was likely to get a raise from the $13 million he made last year, Dunn smacked 40 long balls last year while driving in 100 runs last season. Even with the D'backs trying to keep costs low, they could turn around and trade the power hitter if he accepted arbitration. If he declined and signed elsewhere, they'd be rewarded with two extra picks. Where's the downside?

As if that weren't enough, they did extend offers to both relievers, Cruz and Lyon. If both players happened to accept the offer, the Dbacks would be stuck with two expensive relievers. As evidenced by the Dunn decision, the Dbacks are quite concerned with their payroll so the team must be fairly confident that the pitchers will decline their offer. We'll find out whether the Dbacks guessed right by Dec. 7th, the deadline for the players to accept or reject their arbitration offers.

A's

The Oakland A's did not offer arbitration to Emil Brown or Frank Thomas (both type B free agents) or to Alan Embree or Keith Foulke who did not qualify. Thomas has expressed interest in returning to the A's, but Oakland would need to drastically reduce his salary ($12.5 million last year) to make that happen after Thomas batted just .240 with only 8 homeruns.

Rays

The Rays did not offer arbitration to free agents Eric Hinske, Rocco Baldelli, Cliff Floyd, and Trever Miller (who still has not signed with the Cardinals despite previous reports). Since none of the players qualified as type A or B, the team would have nothing to gain by extending offers.

Nationals

The Washington Nationals, like the Rays, did not have any type A or B free agents and did not offer arbitration to Aaron Boone or Odalis Perez. The club has expressed interest in bringing both players back, according to MLB.com, but are waiting to see how the market develops before making offers.

Orioles

The Baltimore Orioles declined to offer arbitration to all of their free agents, Kevin Millar, Jay Payton, Juan Castro and Alex Cintron, none of whom qaulified as type A or B players.

Padres

The San Diego Padres have declined to offer arbitration to future Hall of Fame closer Trevor Hoffman, a type A free agent. The move has long been predicted but, I can't figure out why the Padres wouldn't make the offer. Hoffman has said the odds of him returning to the Padres are a longshot at 99-1 after the way the team has treated him. The Padres made Hoffman an offer to return, but later pulled the offer in an effort to cut costs. Even still, with Hoffman unlikely to return, it would make sense for the team to offer the closer arbitration and collect the draft picks when he signs else where.

Royals

The Kansas City Royals have offered arbitration to second basemen Mark Grudzielanek. While the move came as a surprise to most, Grudz will reportedly turn down the Royals' offer in hopes of playing for a contender. While the Royals offer may represent the highest salary Grudzielanek will be offered, Kansas City certainly is not a contender and several more competitive teams including Grudzielanek's former club the St. Louis Cardinals are in need of middle infielders.

Mets

The New York Mets have reportedly passed on offering Moises Alou and Louis Ayala arbitration but did extend an offer to free agent pitcher Oliver Perez. Perez is a type A free agent after going 10-7 with a 4.22 ERA. The 27 year old southpaw is widely expected to decline the offer and sign a multi-year deal with the Washington Nationals reportedly leading the way to land the free agent pitcher.

Braves

The Atlanta Braves did not offer arbitration to veteran pitcher John Smoltz, however the team still expects to resign the long time Brave should he decide not to retire.

Red Sox

The Boston Red Sox have offered arbitration to Jason Varitek (type A) and Paul Byrd (type B). Arbitration was not offered to the Sox other free agents, Curt Schilling, Mike Timlin, Bartolo Colon, Alex Cora, Sean Casey, David Ross and Mark Kotsay.

Predictions about whether the Red Sox would offer their free agent catcher had been mixed, and there are just as many differeing opinions about whether the Red Sox captain will accept the offer. According to Varitek's agent, Scott Boras, the veteran wants to play full time, however former teammate Curt Shilling has said that Veritek wouldn't mind a reduced roll. Players have until Dec. 7th to accept the arbitration offers and it wil be interesting to see what the three-time All-Star decides.

Angels

The Los Angeles Angels have reportedly offered arbitration to Mark Teixeira, Darren Oliver, Francisco Rodriguez (all type A) and Jon Garland (type B). By offering Teixeira arbitration, the Angels make the price of signing him slightly higher for other interested teams, although I still expect the first basement to resign with LA.

The Angels also declined to offer Garrett Anderson arbitration, likely ending his 12 year tenure with LA.

Dodgers

The Los Angeles Dodgers have offered arbitration to Manny Ramirez and Derek Lowe (both type A), as well as Casey Blake (type B) while declining to offer it to type B free agents Greg Maddux, Jeff Kent, Joe Beimel and Brad Penny.

The lack of an offer to Beimel was expected but I still don't agree with the Dodgers' decision. Beimel has reportedly drawn interest from the Mets, Cardinals, Rockies, Reds and Tigers and is seeking a 3 year deal which makes him an unlikely candidate to accept the Dodgers' offer.

Rockies

The Colorado Rockies have offered arbitration to closer Brian Fuentes, their only type A free agent. Fuentes has drawn interest from several teams as the best closer on the market other than Francisco Rodriguez. The Mets, Cardinals, and Indians have all expressed interest in Fuentes who had 30 saves last season.

As with other type A free agents who have been offered arbitration, if the Rockies are unable to resign the reliever they'll receive two draft picks, a 1st or 2nd round pick from the team that signs Fuentes (depending on that team's record the previous season) and a “sandwich” pick after the first round but before the second.

Blue Jays

The Toronto Blue Jays have offered pitcher A.J. Burnett arbitration while declining to extend an offer to catcher Greg Zaun. The offer to Burnett was an obvious move as Burnett has already opted out of his existing deal with the Jays and appears likely to cash in with a huge contract. By offering the pitcher arbitration, the Blue Jays, who still hope to resign the pitcher, will receive two draft picks should Burnett sign with another team.

Cardinals

Matthew Leach of MLB.com is reporting that the St. Louis Cardinals won't offer arbitration to any of their free agents which include Russ Springer (type A), Jason Isringhausen, and Braden Looper (type B). The decision not to offer Looper arbitration has me pretty puzzled as the Cardinals have a hole at the back end of their rotation and Looper has put up two very serviceable years as a starter.

The Cardinals have been very accommodating with Springer who has a special needs child attending a local school. I wouldn't be surprised if they're hoping to resign the 40 year old veteran to a deal worth less than an arbiter would award after his 50 innings, 2.32 ERA performance last year.

Twins

The Minnesota Twins offered arbitration to their only qualifying free agent, reliever Dennys Reyes (type B). Reyes, who made an even $1 million last year had an ERA of 2.33 in 46.1 innings pitched over 75 appearances making the decision to offer arbitration a no-brainer. I'd be quite surprised if the 11 year veteran accepted the offer as he's likely to receiver much higher offers considering his performance last year and the fact that he's a lefty. The Twins declined to extend offers to their free agents that did not qualify, "Everyday" Eddie Guardado, Nick Punto, and Adam Everett.

Tigers

The Detroit Tigers declined to offer arbitration to short stop Edgar Renteria, their only free agent that would have qualified them for compensatory draft picks (they also declined to make offers to Kenny Rogers, Freddie Garcia, and Kyle Farnsworth who didn't qualify). I'm a bit surprised that the Tigers weren't willing to take the risk of making an offer. Renteria appears dead set on leaving Detroit and likely the AL as a whole and I doubt he would have accepted arbitration, even though he likely would have received at least $9 million for the year.

Mariners

The Seattle Mariners have offered arbitration to Raul Ibanez (a type A free agent) while telling Willie Bloomquist and Miguel Cairo thanks but no thanks. Ibanez had a career year last year and has stated that he'd like to win which pretty much rules out returning to the Mariners, losers of 101 games last year.

Brewers

The Brewers have extended arbitration offers to CC Sabathia, Ben Sheets, and Brian Shouse but not Eric Gagne (a type B free agent). Many commentators were watching the Brewers' move with Sheets as an indication of his health, but the Brewers would have been incredibly foolish had they not made the offer. Even if they're not sure Sheets can remain healthy, by making the offer they signal to the rest of the league that they'd like to keep him and as such, increase the likelihood he signs elsewhere giving them two extra draft picks. The offer might also been seen as a good will gesture and help in the Brewers negotiations to resign Sheets if they miss out on Sabathia.

Yankees

The Yankees have reportedly declined to offer arbitration to all 8 of their free agents, including Andy Pettitte and Bobby Abreu as well as Jason Giambi, Mike Mussina (who's retiring), and Ivan "Pudge" Rodriguez. This means the Yankees will not receive any compensatory picks if and when their free agents sign elsewhere.

Pirates, Indians, & Giants

The Pitsburgh Pirates, Cleveland Indians, and San Francisco Giants did not have any free agents that qualified as type A or B and as such, extended no offers of arbitration.

Orange County Register reporter, Randy Youngman, doesn't think free agent slugger Mark Teixeira will be back with the Los Angeles Angels next year. He calls it a "gut feeling" and mentions that the people he talks to within the Angels organization don't seem optimistic about the slugger's return. Instead, Youngman predicts, Teixeira will sign with the Boston Red Sox sometime during the high profile winter meetings.

Now, I realize that Boston is no longer phased by money and they've essentially become the enbodiment of the Steinbrenner Evil Empire that they so despised for so long. But Teixeira is going to command $20 million per year AND the Red Sox would have to trade Mike Lowell to open up a position for Tex to play. Obviously the Sox no longer have Manny and his enormous contract on the books and Tex would also help them achieve their goal of getting younger.

However, Boston also isn't the only team trying to sign Tex. Everyone from the rival Yankees to the Angels and Dodgers are going to be in on the bidding and that's where I see Boston having a problem. The Sox don't NEED Teixeira like the Angels do. They have a lineup full of sluggers and as I mentioned already, they don't even have an opening unless they make a trade. The Angels on the other hand have been looking for a bat like this to protect Vald Guerrero seemingly since Ole' Abner invented the game.

Also, as much as they resemble them these days, the Sox are NOT the Yankees. Sure George has handed things over to his son Hal but that's precisely why the Yankees will top any offer Boston can make. Hal is eager to put his stamp on this Yankees club and if that weren't enough, they actually have money to spend this winter!

So, Mr. Youngman is just going to have to forgive me but I'm going to disagree with his "gut feeling." For the life of me I can't figure out how Boston is going to land Mark Teixeira. Either it comes down to cold hard dollars in which case Hal Steinbrenner and the Yankees will never let themselves be topped by their bitter rivals, or it comes down to the team that's going to make Tex their centerpiece, in which case it's going to be tough for Boston to top the kind of offer the Angels are going to be able to make.