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Cliff Lee to sign with Phillies

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We will update as news comes through, but according to Jon Heyman, Cliff Lee will not sign with the Yankees. T.R. Sullivan reports that Lee will not go to the Rangers, and is going to the Phillies.

Yankees offered 7 years, $154 million, according to Buster Olney. Lee is signing for about 5 years, $100 million according to Joel Sherman. Lee must really like Philadelphia.

Rest of the off-season should be interesting now. We already have heard that the White Sox love the Yankees prospects and there could be trade possibilities there.

Update by jscape (12:20 EST): Two quick thoughts for you night owls-

(1) Now I'm really glad the June Montero-for-Lee deal fell apart. Imagine if the Yankees had traded away their best prospect for a rental.

(2) I'm sure there are going to be 100 posts about pitchers the Yankees should go get- I've been tempted to write a couple dozen myself. Try to remember that in December, every team is a contender:

The Rays won the division, the Red Sox were ravaged by injuries but have a new LF and 1B, the Blue Jays boast some of the best young pitching in the AL, the Orioles came on strong in September.

The Twins won their division, the Tigers added a new shortstop and a new catcher, the White Sox went all in returning their vets and bringing in Adam Dunn, the Indians' only regular over 30 is Travis Hafner and their pitching staff grew a lot last season.

The Rangers walked away with their division, the Mariners' offense can't get worse, neither can the Angels' infield, and the A's pitching staff is one good step away from scary.

None of those teams plan to announce 'we're punting this season' before season tickets go on sale.