Two people familiar with the negotiations disclosed the agreement, which is subject to a physical examination. They spoke to The on condition of anonymity because the deal was not yet final.
Teixeira’s deal raises the Yankees’ offseason spending spree to $423.5 million. Last Thursday, the Yankees completed agreements with two highly prized pitchers, giving CC Sabathia a $161 million, seven-year contract and A.J. Burnett an $82.5 million, five-year deal.
Preparing to move into their lavish new ballpark, the Yankees will hold the four largest contracts in baseball as they try to win the World Series for the first time since 2000. Third baseman Alex Rodriguez has baseball’s top deal at $275 million for 10 years, with shortstop Derek Jeter second at $189 million for 10 years.
Teixeira’s agreement came one day after the Yankees received a $26.9 million luxury tax bill for 2008, when their streak of 13 consecutive playoff appearances ended. But with the revenue from their new stadium, where tickets are priced at up to $2,500 per game, their appetite for free agents wasn’t diminished.
The switch-hitting Teixeira, 28, is the type of hitter the Yankees hope will revive an offense that dropped from a major leagues-leading 968 runs in 2007 to 789 last season. He batted a combined .308 with 33 home runs and 121 runs batted in for the Atlanta Braves and the Los Angeles Angels, who acquired him July 29. He has reached 30 homers and 105 RBI five consecutive seasons.
Teixeira gets a $5 million signing bonus, $20 million in each of the first two seasons and $22.5 million in each of the final six years. He has a full no-trade clause.
Boston Red Sox executives met with Teixeira and agent Scott Boras last week and were told they were being outbid. Teixeira, who is from Maryland, also had discussed signing with the Baltimore Orioles.
“We would have loved to have had the player, who appealed to us because of the special circumstances of where he’s from and where we are. We diverted from our plan to try to get him,” Orioles president of baseball operations Andy MacPhail said. “But at the end of the day, it was just too much to pay for one player. It would handicap our ability to go forward.”
The Washington Nationals also held talks. General manager Jim Bowden said his team’s owners “demonstrated their commitment to win, when they stepped up in negotiations . . . at the highest level.”
“We are disappointed we weren’t able to sign him,” Bowden wrote in an e-mail to the AP, “and will now turn our attention to several other opportunities to improve our major league club this offseason.”
The Angels made an eight-year offer during the winter meetings but withdrew it last weekend.
Teixeira will replace a void in the Yankees lineup created by the departures of first baseman Jason Giambi and right fielder Bobby Abreu, who became free agents. It also creates a logjam for New York, which acquired first baseman Nick Swisher last month in a trade with the Chicago White Sox.
Although Swisher also can play the outfield, the Yankees have a multitude of options there, including Johnny Damon, Hideki Matsui, Melky Cabrera, Brett Gardner and Xavier Nady. Matsui currently is likely to be the designated hitter much of the time.
For all Teixeira’s positives, he gives the Yankees another slow-footed player who in 2010 will become the team’s third starting infielder in his 30s. But Teixeira, a 2005 All-Star, is a two-time Gold Glove winner who should improve New York’s defense.
His agreement raises the Yankees’ commitment for next year to approximately $185 million for 16 players on its 40-man roster. New York also hopes to re-sign left-hander Andy Pettitte for about $10 million and has three players eligible for arbitration: Nady, Cabrera and reliever Brian Bruney.
