Per SI's Jon Heyman:
Wow! If this is true...there is a stupid team out there. I love Andy and he's one of my favorite all-time Yankees, but I won't be shedding any tears if he doesn't come back. I think this is bullshit personally, and the Yankees know it. They're not going to change their offer because of this...if someone REALLY wants to give Andy Pettitte this kind of money, so be it!
It's been a mystery to many why veteran left-hander Andy Pettitte hasn't taken the Yankees' $10-million offer. But here could be a clue as to why he hasn't: Pettitte's people apparently are telling folks he has a $36-million, three-year offer from another, unnamed team.
Pettitte, who didn't return SI's calls regarding his reputed offer, has been the Yankees' first choice for their final rotation spot after reaching agreements with high-priced free-agent stars CC Sabathia and A.J. Burnett for $243.5 million in total. But it isn't believed that this $36-million claim has moved the Yankees to change their offer by even one dollar, which could indicate they question whether such an offer exists.
There's no evidence that Pettitte has received a deadline yet from the Yankees. The well-respected longtime Yankee has made it clear that the Yankees are his first choice, as he's said he wants to pitch in the new Yankee Stadium. However, he did have one previous bitter breakup with the Yankees; that's when he went home to Houston and pitched for the Astros from 2004 through 2006.
If Pettitte doesn't ever take the Yankees' longstanding offer, the Yankees will consider either making an offer to Ben Sheets or resuming discussions with Derek Lowe to round out their revamped rotation.