3:58pm: Joel Sherman says the Red Sox were at eight years, $168MM, so the Yankees outbid them by $12MM.
3:38pm: The contract does not include an opt-out clause, according to Danny Knobler. Knobler agrees with Olney that the Red Sox fell about $10MM short. He says the Sox are not inclined to react by "stepping up their pursuit of Derek Lowe or any other top starting pitcher."
2:55pm: Olney now agrees it’s an eight-year, $180MM deal ($22.5MM per year). Bill Madden says Teixeira told the Yankees he preferred them all along, after the Angels and Red Sox backed off. Ha. Joel Sherman says the Yankees made this decision with the 2010 season in mind, given the weak free agent market. He says they’ll now attempt to trade one of Johnny Damon, Hideki Matsui, Xavier Nady, and Nick Swisher.
2:26pm: Buster Olney says the Yankees have reached an agreement with Teixeira on an eight-year deal worth more than $170MM.
Aside from the Red Sox, the Brewers and Blue Jays also lose here. Each team’s draft pick from the Yanks is pushed back one round – the Brewers get a second-rounder from them for C.C. Sabathia, the Jays get their third-round pick for A.J. Burnett.