When the Yankees publicly have said they’d like to keep Pavano, that’s just them negotiating. They know he’d do better elsewhere.
At this point, if the Yankees do trade Pavano, they better get a starting pitcher in return. As bad as Pavano was last year, he still was the 38th best pitcher in the A.L. (out of all hurlers with at least 100 IP). It will be interesting to see how Cashman does handle this – if they indeed trade Carl.