David Waldstein tweeted that Russell Martin has agreed to a two-year deal with the Pittsburgh Pirates. Jon Heyman tweeted that the Yankees only offered a two-year deal to Russell for $12-$14m, however Buster Olney says the Yankees didn't make any offer at all.
Outside of Twitter I don't see anything official, but for the time being I'm going to start thinking about other catchers for the Yankees.
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Sorry for the Capatcha... Blame the Russians :)