December 12, 1985: Rex Hudler was traded by the New York Yankees with Rich Bordi to the Baltimore Orioles for a player to be named later and Gary Roenicke. The Baltimore Orioles sent Leo Hernandez (December 16, 1985) to the New York Yankees to complete the trade.
December 14, 1985: Roger Maris, the Yankees record holder for most Home Runs in one season died after a battle with lymphomatic cancer.
February 13, 1986: Neil Allen, Scott Bradley, Glen Braxton (minors), and cash were traded by the Yankees to the Chicago White Sox for Ron Hassey, Matt Winters, Chris Alvarez (minors) and Eric Schmidt (minors).
March 28, 1986: Don Baylor was traded by the New York Yankees to the Boston Red Sox for Mike Easler.
Don Mattingly became the sixth player in Major League history to have at least 230 hits, 100 RBIs, and 30 home runs in a season. He holds the distinction of being the first American Leaguer to reach that milestone.
Don Mattingly became the first Yankee since Lou Gehrig to have three consecutive seasons of 200 hits.
Dave Winfield became the first Yankee since Joe DiMaggio to achieve five straight 100 RBI seasons. DiMaggio did it from 1936 to 1942.
Willie Randolph became the all-time Yankee leader for games played at second base. The previous record holder was Tony Lazzeri. Lazzeri held the record with 1,446 games.
Mark McGwire made his Major League debut on August 22, 1986 in a game versus the New York Yankees. He had three at-bats and no hits.
On August 10, 1986, the Yankees retired Martin's uniform number 1 and dedicated a plaque in his honor for Monument Park at Yankee Stadium. The plaque contains the words, There has never been a greater competitor than Billy. Martin told the crowd, "I may not have been the greatest Yankee to put on the uniform, but I am the proudest."
On May 24, 1986, on the season finale of Saturday Night Live, co-host Martin was "fired" by executive producerLorne Michaels for being "drunk" in a skit, slurring his lines. During the goodnights, Martin "sets fire" to the dressing room in retaliation. (Only three cast members would be re-hired the next season.) In 1988, on Saturday Night Live's Weekend Update, comedian Dennis Miller opened the sports with, "In Calgary tonight, Katarina Witt won the gold medal in figure skating, prompting Yankees owner George Steinbrenner to fire manager Billy Martin."