From CNNSI.com:

http://sportsillustrated.cnn.com/2006/writers/jon_heyman/07/17/scoop.giambi/index.html

On Friday the Royals dropped their asking price on Sanders, and talks have progressed to the point where the Royals had a scout watching the Yankees over the weekend. Kansas City apparently is no longer insisting on prized pitching prospect Phil Hughes, Jose Tabata or Melky Cabrera and appears willing to choose from New York's second-tier prospects, which include Tyler Clippard, Jeff Karstens, Stephen White, Jeff Kennard and T.J. Beam. A deal may be expanded to also send relievers to the Yankees, possibly including veteran Elmer Dessens.

I think the lower asking price makes Sanders a much better option. Plus we know he's playoff tested.