The New York Yankees released Steve Karsay on Thursday, letting go of the multimillion dollar reliever who never regained his form after major shoulder trouble. Karsay was 0-0 with a 6.00 ERA in six games, allowing 10 hits and two walks in six innings. The Yankees designated him for assignment last week, giving them 10 days to make a move with the 33-year-old righty. The move was a costly one for the Yankees. Karsay has a $5 million salary this year, and his contract contains a $6.5 million option for 2006 with a $1.25 million buyout. Coming off a successful 2001 season split with Cleveland and Atlanta, Karsay became a free agent and signed a $22.5 million, four-year deal to become the Yankees' setup man.