The Yankees' 2007/2008 offseason began in a tumultuous manner, with uncertainty as to the status of manager Joe Torre and team stalwarts Andy Pettitte, Jorge Posada, Mariano Rivera, and Alex Rodriguez, all of whom were free agents.
On December 4, the Yankees shipped minor league pitcher and part-time MLB starter Tyler Clippard to the Washington Nationals for reliever Jonathan Albaladejo.
Despite his original plan to hold out for a fourth year, Rivera agreed to a three-year contract offer worth $45 million, making him the highest-paid closer in baseball history.
Relief pitcher Luis Vizcaíno turned down an offer of salary arbitration and signed a multi-year deal with the Colorado Rockies on December 21.
After a rib injury to Hughes, Kennedy was reassigned to the minor league AAA affiliate Scranton/Wilkes-Barre as the Yankees called up Darrell Rasner.
Catcher Jorge Posada was also placed on the disabled list for the first time in his career after a slight tear in his rotator cuff and backup infielder Wilson Betemit missed several games due to conjunctivitis.
The Yankees lost three in a row through the first three days of June, dropping the final 2 games of the four-game set against the Twins at the Hubert H. Humphrey Metrodome, then were blitzed 9-3 by the Jays on Joba Chamberlain's first career start in the majors.
The Yankees, however, won the next 2 against them including a wild comeback on June 5 that ended in a two-run, pinch hit homer into the upper deck by Jason Giambi after trailing 7-2 in the 6th inning.
They would follow with a lopsided 6-0 loss in which they left 12 runners on base despite Dan Giese's great outing, but salvage the final game with a 4-1 win.
The Yankees traveled to PNC Park for the first time ever when they faced the Pirates from June 24–25 before returning to New York to play a double header with their cross-town rival Mets.
In an important 2-game series against the Rays, they would win the first game 5-0 behind Andy Pettitte's stellar pitching performance and then complete the sweep on Bobby Abreu's game-winning double.
They would be shut out by Roy Halladay in the opener, getting only two hits but then they rebounded and won their next game 9-4 behind home runs by Derek Jeter and Alex Rodriguez.
After defeating the Boston Red Sox 1-0 in Joba Chamberlain's first career start at Fenway Park, the Yankees acquired Pittsburgh Pirates corner outfielder Xavier Nady and left-handed reliever Dámaso Marte for four minor league prospects.
The Yankees would salvage the series finale with a score of 3-2 thanks to pinch-hitter Jason Giambi hitting a two-run homer in the 7th, and then a walk-off single in the bottom of the 9th.
The following day in Seattle, Wilson Betemit's eighth-inning RBI double ended Brandon Morrow's no-hit bid, but New York still lost the game 3-1.
[2] Fielding Derek Jeter as their captain, Andy Pettitte as the starting pitcher, and led by home runs from Johnny Damon and José Molina, the Yankees won 7–3.
Mariano Rivera pitched the top of the 9th inning, and the final batter was Baltimore's Brian Roberts, who hit a ground-ball out to Yankee first baseman Cody Ransom, closing out 83 years of baseball history.
Guest commentators for the game on ESPN included Yankee legends Reggie Jackson, Whitey Ford and Yogi Berra, as well as local YES Network announcer Michael Kay.
[4] The Yankees were officially eliminated from the playoffs on September 23 with a Red Sox win over the Indians, making them the last team to miss out in the Division Series era and it was the first time since 1993 they missed the postseason (in 1994, the Yankees had the best record in the American League, but the season came to early halt as a result of the longest work stoppage in sports history up to that point.