Oct. 8 (Bloomberg) -- New York Yankees owner George Steinbrenner said losing in the first round of baseball's playoffs was a ``sad failure'' and suggested he would make changes to help the club win another world championship.

``This result is absolutely not acceptable,'' Steinbrenner said in a statement. ``Rest assured we will go back to work immediately and try to right this sad failure and provide a championship for the Yankees, as is our goal every year.''

New York lost to the Detroit Tigers in the American League Division Series three games to one. It was the sixth straight year the team with the biggest payroll in Major League Baseball failed to win the World Series. The Yankees, who finished tied with the New York Mets for the best record in baseball at 97-65, might undergo many changes before next season.

The New York Daily News reported today that manager Joe Torre may be fired and replaced by former Yankees player and manager Lou Piniella. The paper didn't identify the source of its information.

Steinbrenner declined to comment on any personnel matters including Torre through his spokesman Howard Rubenstein.

`Speculation'

Piniella's agent Alan Nero called the report ``speculation.'' The Chicago Cubs, San Francisco Giants, Florida Marlins and Washington Nationals all are looking for new managers, and Nero said he's talking with the four teams about the 63-year-old Piniella.

Piniella has a 1,519-1,420 record during his 19 years as manager of the Yankees, Cincinnati Reds, Seattle Mariners and Devil Rays. He led Cincinnati to a World Series victory in 1990 and Seattle to a baseball-best 116 win season in 2001. The Devil Rays bought out the final year of his contract after the 2005 season and he has since been working as a baseball analyst on television.

The Yankees have gone to the playoffs in each of Torre's 11 seasons as manager. They won nine straight division titles, six AL pennants and four World Series. Steinbrenner has given Torre a team with the highest payroll in baseball every year but one.

New York hasn't won a world championship since beating the Mets in 2000. They lost to the Arizona Diamondbacks in the 2001 World Series and the Florida Marlins in the 2003 World Series.

In 2004 they lost the league championship to their archrival, the Boston Red Sox, after leading the best-of-seven series three games to none.

Changes Next Season

The Yankees lineup, which Detroit manager Jim Leyland called ``Murderers' Row,'' might also change next season.

Gary Sheffield, the outfielder turned first baseman who missed more than three months with a wrist injury, won't be back if the Yankees decline his $13 million option for 2007. New York already has Johnny Damon, Hideki Matsui and Bobby Abreu all under contract next year, as well as Jason Giambi, a first baseman and designated hitter.

Pitcher Mike Mussina, who went 15-7, has a $17 million option that may not be picked up, and outfielder Bernie Williams's one-year contract has expired.

The team may also do something about third baseman Alex Rodriguez, who was booed at Yankee Stadium all season long and failed to perform for the second straight year in the postseason.

Rodriguez, whose $252 million contract is the richest in baseball, got one hit in 14 at bats against the Tigers. He struck out four times in the series, including taking a called third strike with the bases loaded in Game 2.

Torre dropped Rodriguez, a two-time AL Most Valuable Player, to sixth in the batting order to open the series and then to the eighth spot in the final game. New York hasn't advanced to the World Series after acquiring Rodriguez in a trade with the Texas Rangers in February 2004.

To contact the reporters on this story: Danielle Sessa in New York at dsessa@bloomberg.net

Last Updated: October 8, 2006 15:16 EDT