Damon must've been on OS and read us talking about his future with the Sox.
LINK
He basically said that he'd consider taking less years, but it might mean more money. The question is, what does "more money" mean? At this point I think the best the Sox can do is 3/36 or 4/42-44. I really don't see them giving him a 5th year under any circumstances. Hopefully Damon will agree to something like that, but I kind of doubt it. Whether or not he's interested in going to NY, he will still use them to drive up his price, which they'll be more than happy to do.
The bottom line for the Red Sox is, we won't win next year or maybe the year after, without Damon. No player or combination of players can replace what he does for us in the leadoff role.