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12/23/08 4:31 PM EST

O's unbowed after missing on Teixeira

GM MacPhail ready to use resources for other team needs

BALTIMORE -- The Mark Teixeira derby is over, and the Orioles aren't headed to the winner's circle. Teixeira ended one of the most hotly monitored pursuits in recent memory Tuesday by agreeing to an eight-year, $180 million deal with the Yankees, a late-breaking offer that sealed New York's latest victory on the open market.

Andy MacPhail, Baltimore's president of baseball operations, said that his team would've loved to have Teixeira, a native of local suburb Severna Park, but in the end, the investment was just too much to fathom.

"We would've liked to have the player," MacPhail said. "We sort of deviated from our plan a little bit to see if we could accommodate him, but at the end of the day, it was really just too much of our resources devoted to one player. We're just dealing with a club that has resources way beyond the great majority of the rest of us."

Baltimore reportedly offered Teixeira a seven-year, $140 million contract, but MacPhail has repeatedly said that there was flexibility to increase the bid. The Nationals, Red Sox and Angels all reportedly made larger offers in a losing cause, and MacPhail said that missing Teixeira won't stop him from pursuing the rest of his goals.

"We're still going to go out and do those things that we intended on doing," MacPhail said. "We're still going to go out and try to augment the pitching and fill out the catching situation. We haven't really been paralyzed by the negotiations. We've worked on those other things that we've had earmarked since the organizational meetings."

The Orioles have been linked to Japanese free agents Koji Uehara and Kenshin Kawakami on the pitching front, as well as stateside options like Mark Hendrickson and Tim Redding. Baltimore is also reportedly interested in adding a veteran catcher like Gregg Zaun but won't go out and try to add another impact bat.

Teixeira represented a rare coup for the Orioles -- a player who's from the area, accomplished and young enough to be around when the team's rebuilding plan begins to flourish. Baltimore doesn't feel the same way about Adam Dunn or any other hitter on the market, and losing out on Teixeira likely means a shift in direction.

The Orioles will likely go into the season with largely the same offense they had last season, minus veterans Ramon Hernandez, Kevin Millar and Jay Payton. MacPhail said that he remained unfazed by the pace of the negotiations with Teixeira, and he said that the timing of the announcement didn't really affect his opinion of it.

"They all run at their own pace and time. My preference would've been outside of the division but it is what it is," he said. "He was a young player that you could see extending yourself for, a productive middle of the order type guy. That was just sort of a deviation. We've got continue to do the things that will serve us well in the future."

Spencer Fordin is a reporter for MLB.com. This story was not subject to the approval of Major League Baseball or its clubs.