The Yankees have offered Type-B free agent Freddy Garcia arbitration. If he signs elsewhere, they will receive a supplemental first round draft pick as compensation. You can see all of the Type-A and B free agents (and their arbitration statuses) on our 2012 Draft Order page.
Garcia has until December 7th to accept the offer. He’s in line for a ~$6-7M salary if he does accept, but the two sides have been discussing a reunion in recent weeks. I have a feeling Freddy might have agreed to decline arbitration before the offer was made, similar to Javy Vazquez last season.