From Buster Olney:
Dunn might draw interest from the Yankees, a team for which he is perfectly suited, if they could shed the contracts of two of Xavier Nady, Hideki Matsui and Nick Swisher.
First off – the Yankees don’t simply want to “shed” those players. Even Matsui – maybe he’s a little overpaid considering this market, but if he is indeed healthy, he could end up hitting in the 5 hole for the Yanks. Cashman says he expects a lot from Matsui this season.
If Cashman does find a good deal for Nady, then perhaps the Yankees jump in and try to sign Dunn, whose price is falling. Locking up Dunn for 2 or 3 seasons would give the Yankees insurance in case they lose Damon, Matsui, or both next season.
I agree with Buster – Dunn would be a good fit for the Yanks but it seems like a longshot that all the pieces would fall into place. But perhaps Dunn settles for a one year deal somewhere to reestablish his market and the Yankees sign him next season.