Nomar signed with Oakland. As of now there are zero third baseman FA left, at least at the ML level. Yes they would. Baseball contracts are guaranteed. They may have insurance to cover some of it so they aren't physically writing out the checks, but his salary is guaranteed even if he retires. Just like Baltimore had to pay Albert Belle when he retired due to a hip problem. That's why Keith Foulke got some good press when he retired before spring training with Cleveland. If he had just waited until the season started he would have gotten paid his full contract.
uh...I said "Yankees might have to make a major trade. " it's still there if you want to check. Oh, and there is still talk of it if Arod does need the surgery. When the best you have is 33 years old with 1 game at third base and 183 career at bats, you start looking at who is available.
If he chooses rehab, and the rehab works, how long will he be out and when he comes back will he be as effective as usual?
if he chooses rehab (I imagine you mean instead of surgery) he wont be out at all. He can play right now with the labrum tear. Its aa simple matter of pain tolerance. Hes already been playing through it for a while.