The Yankees are at a crossroads. They have needs that they will address via free agency, but they have others that can be addressed internally, which is a good thing because of their lack of payroll flexibility.
They need a shortstop and a starting pitcher, both of which will likely be acquired. Other than those two positions, the team has a fair amount of pieces already in place.
Mark Teixeira will be the starting first baseman, Brian McCann will catch, Jacoby Ellsbury will man center field, Brett Gardner will play left field, and Carlos Beltran will be in the lineup in some form or another, as will Martin Prado. The only positions that are uncertain are second and third base (one of which will likely be filled by Prado and the other by Alex Rodriguez or Chase Headley), shortstop, and parts of the bullpen.
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Most of those roles will be filled by players within the organization, many of them by rookies.