Via Jon Heyman, the Yankees offered Hiroyuki Nakajima approximately $1M, but the more serious issue was his role. When the announcement was made that the two sides couldn’t reach a deal, we learned that they only offered him a one-year contract. A statement issued by Nakajima’s agent makes it sound like they believe he should be a starter, but apparently no MLB club agrees with that given the lack of bids.
A report from Sponichi (translated) reiterates that Nakajima was okay with the money, but he wanted to become a free agent after the one-year deal while the Yankees wanted to retain his rights for six years like every other player. As a courtesy, MLB typically allows foreign veteran players to be treated as true free agents rather than players with zero service time. Either way, what’s done is done. Nakajima will go back to Japan and the Yankees will look for another bench player elsewhere.