In years past, the Yankees could simply wait for young talent to reach free agency and then, if they desired, come in with a substantial offer. The only player I can think of that the Yankees really wanted in free agency and didn't get was Greg Maddux (and even though he didn't want to go to the Yankees, he was all set to go to NY until the Braves came in with an offer that was close)
Now, the economics of baseball have changed drastically where teams simply do not allow their young talent to reach free agency. Players like Justin Verlander, Felix Hernandez, Cole Hammels, Joey Votto, Clayton Kershaw, Ryan Braun (PED's aside), Matt Cain, etc. are locked up by their current team before they hit free agency. Teams have the financial ability to keep their own talent. It is highly unlikely stars like Mike Trout and Bryce Harper and Yasiel Puig will ever be available to the Yankees in free agency.
As others have pointed out, the Yankees have done a terrible job recently of building their farm system. They have no potential #1 starters in the wings (or for that matter elite prospects at any position). Masahiro Tanaka represented the Yankees best chance at getting a potential #1 starter, who at age 25, is presumably still on the upside of his career. Players of his stature simply do not make it to free agency any more. The Yankees had no choice but to outbid everyone.
Obviously, this is a tremendous risk. No one has any idea if he will be Yu Darvish or Kei Igawa. For the Yankees sake, he better be closer to the former.
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