R.J. Anderson likes the CC Sabathia deal:

Here's the scary thing: even if Sabathia drops 1 WAR per season, he'd still be worth about 129 million over the next seven seasons. That means if Sabathia loses an arm he'd only be overpaid by ~30ish million, and to the Yankees, who are opening a new park, have their own regional sports network, and have contracts coming off of the books, that's not overpaying by much at all.

The Yankees are paying for this with Giambi's contract and part of Mussina's. That still leaves them the rest of Mike's contract, Abreu's and Pettitte's to sign another high quality starter, and even have room for a bat.