"Yankees sources said the organization hasn't begun substantive talks with Sam and Seth Levinson, the agents who represent Posada, but the team is said to be planning an offer of three years and about $40 million"
I missed this when it came out. Now there really are no other catching options out there and the Yankees will have to sign Posada. They will probably know they will pay him for two years where he won't earn his salary. Consider the two statements below from this article earlier in the year on SI.com;
"Posada, who never hit better than .287, and who turned 36 last week, began this week batting .332. His OBP (.412) would also be a career-high and his slugging (.525) is near his career best."
"Would you give about $28 million over the next two seasons to a 36-year-old catcher? History says it is not a wise investment. Only three catchers ever posted an .800 OPS once they passed that age (Carlton Fisk, Gabby Hartnett and Wally Schang). "
Anyway you look at it history says the smart play is let him walk. However, these are the Yankees and its only money. So I say sign him but dont hesitate to make him a backup catcher, part-time DH and sometime first baseman if he becomes what history says he will.