According to SI.com’s Jon Heyman:
There’s no evidence Ben Sheets has received any proposals for two years or more yet, though he’s drawing interest from at least the Rangers and Yankees, and very likely his old Brewers team, as well.
As Heyman says, Sheets’ timing was terrible. If his flexor tendon injury had occurred in April and he finished the season strong, he might’ve been looking at three or four years. Instead, the lingering memory of the September injury had a huge effect on his market despite the fact that he made 31 starts in 2008. Heyman says the Yankees may wait to bid on Sheets until they hear Andy Pettitte’s decision.
As Sheets is a Type A free agent offered arbitration, the Brewers could swipe a first-round pick if he signs elsewhere. Assuming they can’t sign him, they have to be rooting for a new team to jump into the fray since they wouldn’t get a first-round pick from the Rangers or Yankees.