The Yankees are prepared to increase their offer to free-agent shortstop Derek Jeter, according to a source. The same source says that Jeter is going to have to accept some sort of pay cut in order to remain with New York. The latest offer to Jeter is a three-year, $45 million deal. New York's next offer is expected to be for a few million more, and Jon Heyman of Sports Illustrated writes that a three-year, $50-plus million offer could be extended.