On the other hand, the Yankees remain optimistic about retaining another core player who is a free agent: Mariano Rivera.

The Yankees continue to have discussions with Rivera and his agent, Fernando Cuza. They are hopeful of getting a deal done before their 15-day exclusive window of negotiating rights ends Nov. 13. The two sides are talking about a deal likely to be in the three-year, $40-million range.

A source familiar with negotiations confirmed today a report first published by ESPN.com's Buster Olney, which stated that team executives were told no meeting would take place unless the Yankees were prepared to make an extension offer of $350 million.

Rodriguez was owed at least $81 million over the final three years of his contract, and the Yankees had planned to offer a five-year extension worth $140-$150 million. That would have left the Yankees' offer more than $100 million beneath what Boras and Rodriguez were looking for. Boras submitted official paperwork for an opt-out Sunday night, leaving Yankees general manager Brian Cashman a message with that information. By the time Cashman received the message, word of the opt-out was already public.

The Yankees have publicly stated many times that they would not negotiate with Rodriguez, who is a virtual lock to win his second MVP Award in three years, if he opted out. The reason is that the Rangers would have been picking up about $30 million on Rodriguez's current contract, money they will not owe on a new contract.

Before the fact, Yankees senior vice president Hank Steinbrenner said: "If he opts out, goodbye."

On Thursday, at a news conference introducing new manager Joe Girardi, Cashman said: "Everything that goes on about the description of how and why, it ultimately is noise. The fact of the matter is, he's not our third baseman. That's the fact."

Some MLB executives have been skeptical that any team will commit to a $300-million-plus contract for Rodriguez. Red Sox president Larry Lucchino said today on Boston radio station WEEI: "I also have trouble envisioning places where A-Rod can go. What teams have the financial wherewithal, as well as the specific need? If you survey the field, there aren't that many places. Now, I know it takes only one other place, and there may be somebody out there who is willing to sign on to some astronomically long, burdensome contract."