This is certainly unexpected. ESPN New York’s Wallace Matthews reports that the Yankees will offer arbitration to Kerry Wood and Javier Vazquez. While the Vazquez news comes from a source of Jayson Stark’s, the decision on Wood comes right from Cashman: “I’m thinking yes on Wood. We’ll do them a favor. If we put them into an arbitration setting, then we can take them out and make a fair market value offer to them.”
Updated (2:49 p.m. by Ben): Here’s an interesting twist on this deal: Ken Rosenthal reports that Javier Vazquez has agreed to reject the Yanks’ arbitration offer. In doing so, the Yanks will earn a supplemental first-round draft pick. “Teams frequently make such gentlemen’s agreements with Type B free agents,” Rosenthal said. “No harm is done to the signing team, which does not lose a pick for signing a Type B player.” As I predicted yesterday, the Yanks are doing their best to salvage the Javier Vazquez deal.