"It became clear to us in our recent negotiations that the money that we were offering was not going to be good enough for Johnny at this time," White Sox general manager Kenny Williams told ESPNChicago.com. "At this particular point, we feel it's necessary to withdraw our offer."
The White Sox made a $6 million offer for Damon, according to major league sources.
Asked if the White Sox would get back into the running for Damon at some point, Williams said: "As you can see by the way that we kept going after this situation, we are very much interested in the player. All I can say is that I reiterate at this time that this offer for now is off the table."
Major league sources said that the White Sox would gladly get back into the negotiations for Damon if they saw more reality in signing the outfielder, represented by agent Scott Boras.
The crux of the problem with Damon signing all along has been the assumption that there was a two-year deal on the table from the Detroit Tigers. According to sources, that two-year, $14 million deal has never been offered by Detroit.
According to another major league source, the Tigers have offered just a one-year, $7 million deal for Damon.
Bruce Levine covers baseball for ESPNChicago.com.