This means the Yankees are going to repeat what they did last season. Most likely in order to sign a big free agent like John Lackey, they are going to have to let go one of their own free agents, aka Johnny Damon or World Series MVP, Matsui. The Yankees have learned that pitching is the most important part of winning a Championship, so Brain Cashman will probably want to resign Andy Pettitte.
If the Yankees think top prospect Austin Jackson is ready for Major League play, the Yankees would be able to let Damon and Matsui sign with another team and use that extra money to sign free agent John Lackey.
The Yankees have many options this off season, and I am very curious to see how they handle this new budget plan.