No arbitration: Damon, Matsui, Pettitte (AP)

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The Yankees declined to offer salary arbitration to World Series MVP Hideki Matsui, Johnny Damon and Andy Pettitte, a move that means New York would not receive draft picks as compensation if they sign with other teams. Tuesday night was the first big deadline of baseball's offseason, with teams having until midnight to make arbitration offers to their former players who became free agents.

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