This is from MLB Trade Rumors:
I would stay away from the guy, but if the Reds could extract him for a minimal prospect and $8 mil over the next two season...maybe.Pavano On The Trade Market
Pretty much anyone you ask would tell you Philip Hughes is likely to outpitch Carl Pavano this year. Any projection system or scout would tell you that the Yankees will win more games with Hughes as the fifth starter than Pavano. Why then is Pavano, and not Hughes, penciled in as the team's fifth starter? The reason is that Pavano is due $23 million over the next two seasons. The Yankees want to get something out of him.
Best move for everyone would be to trade him. Jon Heyman of SI.com tells us that the Rockies wanted the Yankees to cover $15MM of the $20MM remaining on his deal. (Although I do believe Pavano is owed $23MM if you include his buyout). Maybe that means Colorado would take Pavano at the price of $8MM over the next two seasons? Who wouldn't? Ramon Ortiz just got three mil. However, at this point the Rockies don't need any more starters.
Heyman goes on to say that if Pavano can show promise this spring, the Yanks might get a team to take on $12-13MM of the money owed to Pavano. So, the team would pay $10MM over the next two seasons. Still not too bad, especially for an NL club looking to get creative (Cardinals?)
Pavano is on a rigorous workout regimen in hopes of returning to a Major League mound and redeeming himself.