1:07pm: Ken Rosenthal now hears that the Rays may involve a third team in the deal to provide the Indians with more pitching.
8:25am: No deal is imminent, but the Rays and Indians discussed a deal that would send Cliff Lee to the Rays for prospects, accoding to Jon Paul Morosi of FOX Sports. Wade Davis is believed to be among the top prospects that interest Indians GM Mark Shapiro, but the Rays have been reluctant to deal the 23-year-old righty.
Davis isn't considered an elite prospect along the lines of Clay Buchholz or Tommy Hanson, but the Rays want to keep him and would be more open to dealing Reid Brignac. The Indians are said to want pitching in exchange for Lee, so it's likely the Rays would presumably have to part with some to acquire the reigning Cy Young Award winner.
The Rays are also interested in Rafael Betancourt, Jason Frasor and Michael Wuertz.
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