In the first big showdown of the off-season, it's the Braves against the Cubs for Padres right-hander Jake Peavy .

Both teams continued to target Peavy as the general managers' meetings concluded Thursday, and the Padres' discussions with the Cubs could be expanded to include a third team, according to major league sources.

The Braves' package includes shortstop Yunel Escobar , either left-hander Jo-Jo Reyes or right-hander Charlie Morton , and a third player, believed to be a top prospect, sources said.

The details of the Cubs' proposal are not known and likely are fluid.

The Padres could spin one or more of the players they would receive from the Cubs to get additional pieces from another team, sources said.

The Braves' edge over the Cubs is that Escobar already is an established major leaguer, while Reyes or Morton also could help the Padres next season. The Cubs' better young players are in the lower minors.

YANKEES: Reliever Damaso Marte 's $6 million option was declined by New York, which chose to pay the lefty a $250,000 buyout.

Marte, now a free agent, was obtained with outfielder Xavier Nady from Pittsburgh on July 26 for pitchers Ross Ohlendorf, Jeff Karstens and Daniel McCutchen and outfielder Jose Tabata . Marte was 1-3 with a 5.40 ERA in 25 games with the Yankees.

RED SOX: Along with adding 560 seats at Fenway Park, Boston is planning on waterproofing and repairing the lower deck and fixing the roof beyond third base.