That might be just enough to sign Jerry Hairston Jr., Rocco Baldelli or Marcus Thames, but the amount probably would fall short to acquire Xavier Nady or Reed Johnson (Sherman says all are Yankees targets).
Sherman also revealed the Yankees had competed a deal for Mike Cameron (now on the Red Sox) last July, but Hal Steinbrenner wasn't willing to pay the cost of $5.5 million to keep Cameron the rest of the year. If that doesn't show you the Yankees are serious about payroll, I don't know what does.
However, Cashman was able to convince Steinbrenner last offseason to expand the payroll to retain Andy Pettitte. Because of this, Johnny Damon remains a "remote" option for left field.
My thoughts, again, are: it is unnecessary to bring Damon back after acquiring Nick Johnson and Curtis Granderson, and re-signing Hairston would suffice. Baldelli and Thames also are fine options, and I would prefer Johnson to Nady.
While you are reading this, I'll be in an IMAX 3D theater watching Avatar. I've heard nothing but good things (except for those who "have no interest watching blue people roam around another planet").