Are the Yankees screwed if they don't land Cliff Lee?

From the looks of it, it doesn't seem like the yankees will get him, despite the huge contract being offered. Although Ron Washington is just stating what he thinks. Other than CC, our pitching rotation is in big trouble right now. Burnett sucks, Hughes hasn't been the same since the inning limits (which is probably going to be continued next year), Pettitte is leaning on retirement, and as of now we don't have any proposal for filling the 5th spot in the rotation. Mosely is gone, and Ivan Nova can only go 5 innings.