http://www.nytimes.com/2007/10/25/sports/baseball/25chass.html?ref=baseball
Apparently, Torre had rich incentives in his previous contracts, worth a total of around 1 million for wins, play-off appearances, and world series wins.
I think the Yankees ultimately screwed up by offering the weak 1 year term. They should have given him 2 years at 11 million. That way, if Torre rejected it, it wouldn't look so bad for the Yankees.
However, I don't think the Yankees really have a better candidate. Pena, Girardi, & Mattingly will probably do worse than Torre.
Most importantly, this tiresome manager search is diverting attention away from the Yankees most important free agent year in this decade. They have to decide how much to invest in A-Rod, Posada, and Rivera, which might total more than 450 million. On a lesser note, they also have to figure out what to do with Abreau (I think they let him go and move either Damon or Matsui to right).
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