Just buyout his contract or let him sit on the sidelines for the remainder of his contract. We should have traded him during Spring Training when the Cards and others were still interested in him
It's tough to blame Cashman though - again, yeah, he could have traded him away, but would he have gotten quality pitching in return? Trying to find decent pitching nowadays is like grasping for straws, so I doubt that a Pavano deal would've garnered much, AND the Yankees still would probably be paying the vast majority of his salary.
I agree though, buy him out, end his career. He's toast.
