Giambi's reported steroid use admission could affect Yanks' deal

They could argue Giambi's use of steroids violated his contract, allowing them to terminate it; violated the guarantee language of the deal, allowing them to release him at a fraction of the remaining money; or caused him to be injured or unavailable, meaning he was paid at a time when he was at less than full strength.

"We have met with the commissioner's office today and will continue to work with them to obtain all of the facts in this matter," Yankees president Randy Levine said. "We have made no decisions and will keep all of our options open."

Meanwhile, U.S. Attorney Kevin Ryan said his office was concerned about the leaks to the Chronicle and asked the Justice Department to investigate. "Violations of grand jury secrecy rules will not be tolerated," Ryan said.

Giambi came to spring training this year noticeably trimmer. Asked in February whether he had ever taken performance-enhancing drugs, Giambi said: "Are you talking about steroids? No."

However, he told grand jurors he used steroids during the 2001-2003 seasons, the Chronicle reported Thursday. He testified how he injected hGH in his stomach, testosterone into his buttocks, rubbed an undetectable steroid knows as "the cream" on his body and placed drops of another, called "the clear," under his tongue, the newspaper said.

Giambi testified that he obtained several different steroids from Barry Bonds' personal trainer, Greg Anderson, one of four men indicted by the grand jury probing the Bay Area Laboratory Co-Operative. He said he got the hGH from a gym in Las Vegas.

Tony Serra, Anderson's lawyer, said Anderson "never knowingly provided illegal substances to anyone."

Gene Orza, the chief operating officer of the players' association, declined comment.

Anderson, BALCO founder Victor Conte, BALCO vice president James Valente and track coach Remi Korchemny have pleaded not guilty to charges that include steroid distribution.

In an interview to be shown on ABC's 20/20 on Friday night, Conte mocked MLB's drug-testing program.

"I think they still believe there's a Santa Claus," he said. "They're not in contact with reality. I mean the program that they put together is a joke."

"Let me tell you the biggest joke of all: I would guesstimate that more than 50 percent of the athletes are taking some form of anabolic steroids," he said.

Giambi was among dozens of elite athletes -- including Bonds, Gary Sheffield and track stars Tim Montgomery and Marion Jones -- who testified before the grand jury last year under a promise of limited immunity from prosecution.

Bonds, Jones and Montgomery deny using performance-enhancing drugs. Sheffield told Sports Illustrated and a sports website he used "the cream" and "the clear" from BALCO but did not know they contained steroids.

Giambi told grand jurors that he didn't notice a "huge difference" in his performance after starting to use the drugs, the Chronicle reported.