The patriarch of the Yankees success over three and a half decades since buying the team from CBS in 1973 had been in failing health, and had been reducing his role in the ownership the last several seasons.

[4] After the Yankees failed to make the playoffs for the first time since 1993, General Manager Brian Cashman made clear that there would be offseason changes.

[22] The Yankees signed starting pitcher Sergio Mitre to a split (minor/major league) contract,[23] and signed former major leaguers such as Justin Leone,[24] Ángel Berroa,[25] Doug Bernier,[26] Jason Johnson,[26] Kevin Cash,[27] John Rodriguez[28] and Todd Linden;[29] they also acquired catcher Chris Stewart from the White Sox for a player-to-be-named later.

[31] Third base coach and former player Bobby Meacham did not get his contract renewed and special pitching instructor Rich Monteleone was fired as well.

[43] They also signed several minor league free agents throughout the season such as Russ Ortiz,[42] Josh Towers,[44] Brian Peterson[45] and Yurendell de Caster.

[46] They also released players such as Jason Johnson, Angel Berroa,[47] Brett Tomko,[48] Kevin Cash,[49] and Justin Leone.

[56] Infielders Designated hitters Coaches In March, Alex Rodriguez was diagnosed a hip injury and underwent surgery, sidelining him for 6 to 9 weeks.

[59] Playing at Camden Yards, the Yankees lost the first two games of the season due to poor performances by starters CC Sabathia and Chien-Ming Wang.

[60] On April 14, Xavier Nady left the game after experiencing elbow pain and was placed on the disabled list; he would later try to rehab from the injury.

He posted a stellar 1.40 ERA as a reliever, serving as a highly effective eighth-inning set-up man for closer Mariano Rivera.

[75] Late in the month, the Yankees struggled in interleague play, losing two of three to the Nationals and Marlins, falling to five games back in the division.

After Brett Gardner walked and was picked off at first base–a borderline call by umpire Bill Welke–Joe Girardi protested and was ejected from the baseball game by Welke.

[79] Xavier Nady underwent Tommy John surgery to repair his right elbow, ending his season after spending three months attempting to rehab the injury.

[81] The Yankees took control of the best record in baseball, highlighted by a four-game sweep of their archrivals the Boston Red Sox from August 6–9.

During Game 1 of the series, the Yankees pounded Red Sox starter John Smoltz for nine hits, four walks, and eight earned runs in 3.1 IP.

[85] In the series finale on Sunday Night Baseball, Johnny Damon and Mark Teixeira hit back-to-back home runs in the eighth inning to propel the Yankees to a victory.

[86] The sweep also gave the Yankees a stranglehold over the American League East and for the rest of the season, no other team would come within five games of first place.

[88] By beating the Boston Red Sox on September 27, the Yankees won their 100th game of the season, and clinched the American League East Division title.

[91] Trailing 3–1 in the bottom of the 9th inning of Game 2, Alex Rodriguez hit a game-tying two-run homer off Twins closer Joe Nathan.

David Robertson escaped a bases-loaded, no out jam in the Top of the 11th, and Mark Teixeira lined a walk-off home run off José Mijares to lead off the bottom half to give the Yankees a 4–3 win.

[93] Rodriguez played a pivotal role in the Division Series, hitting two home runs (both of which were game-tying), batting .455 (5-for-11), and collecting 6 RBI.

In the top half, Chone Figgins broke out of his postseason slump by blooping an RBI single to left field to score Gary Matthews Jr. and give the Angels a 3–2 lead.

However, in the bottom half, Alex Rodriguez lined a home run into the short right-field porch off Angels closer Brian Fuentes to tie the game at 3.

In the bottom of the 13th, Maicer Izturis threw away a potential double play ball from Melky Cabrera to score Jerry Hairston Jr. with the winning run, giving the Yankees a 2–0 series lead.

Four solo home runs accounted for the Yankees' scoring, hit by Derek Jeter, Rodriguez, Johnny Damon and Jorge Posada.

The Yankees rallied for 6 runs with two outs in the top of the 7th inning, including a 3-run double by Mark Teixeira, a game-tying single by Hideki Matsui, and a two-run triple by Robinson Canó.

[104] The Yankees won Game 3 behind 6 innings from Andy Pettitte, coupled with the first instant replay-overturned home run in World Series history by Alex Rodriguez and homers from Nick Swisher and Matsui.

But with two out and no one on, Pedro Feliz lined a solo home run to left off Joba Chamberlain on a 3–2 pitch to tie the game.

[106][107] The Yankees also lost Melky Cabrera for the remainder of the series, after he injured his hamstring running out a grounder in the sixth inning.

Rivera recorded the final five outs to give the Yankees their 27th World Series Championship, by far the most in the history of baseball and the most in North American sports.