The issue was not about money, Torre said he was fine with 5 million but the incentives are what he didn't like. He wanted 2 years guaranteed. If he didn't win the world series the Yankees considered the season a failure and Torre would be out of a job. A Manager that has been to the playoffs 12 straight times is not enough for the Yankees if you don't win anything. That is why Torre turned down the deal. It had nothing to do with money. It was about respect. The Yankees can't give the most respected manager in the game money but they will waste money on Clemans. If the Yankees really wanted Torre to stay they would of made him an offer he would not turn down. This is a team that is known to throw money away.
Rule of life: Whenever somebody says "it's not the money, it's the principle," it's really about the money. I have never seen it work any other way. If you listen to even what you've said yourself in defense of Torre, you can see it really is about the money. Even without the incentives, he'd still be the highest-paid manager in baseball, by far. He's demanding the full price or nothing. Don't kid yourself, it's about the money.