MLB

Yankees’ Damon fund dries up

The Yankees have signed lefty reliever Royce Ring and outfielders Reid Gorecki and David Winfree to minor-league contracts. Meanwhile, their chances to re-sign Johnny Damon remained remote.

The Yankees are telling agents they only have $2 million, at most, to spend on a left fielder. They figure Damon, even in a diminishing market, never would drop his demands that low.

The Yanks being the Yanks, of course, could always just create extra money in the budget as they did last year when GM Brian Cashman successfully lobbied Hal Steinbrenner to add Andy Pettitte’s $5.5 million base plus makeable incentives to the payroll.

Yankees management, however, clearly felt the the team needed Pettitte far more for the 2009 season than it needs Damon for 2010.

In addition, the Yanks were feeling a level of desperation last off-season having failed to qualify for the playoffs in 2008 and with a new stadium about to open in 2009.

After having won the World Series, ownership is not quite as compelled to blow up the budget again.

Hal Steinbrenner, after all, has shown a much greater willingness to hold to some financial guidelines than his father, George, did. For example, The Post has learned, the Yanks had a completed trade last July with Milwaukee for Mike Cameron, pending ownership’s blessing to take on the money. But Hal Steinbrenner refused to add the approximately $5.5 million in salary and luxury tax it would have cost for the rest of the season, so the deal was scrapped.

So unless ownership reverses course on the budget, the Yankees will continue to look at a supplementary player for left field rather than Damon. Specifically, the Yanks would like to find someone to start rather than Brett Gardner or serve as a righty-swinging complement to Gardner.

The player who most entices the Yankees is Xavier Nady, who, like Damon, is represented by Scott Boras. However, Nady is of interest to several teams and, therefore, might be too pricey for the Yankees.

Their next target is Reed Johnson because, of the remaining candidates, he is the one who projects best to being a help defensively while also having a history of hitting lefties well.

The other three free-agent possibilities, at the moment, are Rocco Baldelli, Jerry Hairston Jr. and Marcus Thames.

joel.sherman@nypost.com