Oswalt already turned them down. He wants to pitch in the National League and somewhere close to his home down South.
Bard is going to be moved to the pen. Arron Cook is in AAA and has a clause in his contract that he can void the deal if he is not in the majors sometime pretty soon. He is going to take Bards spot in the rotation and Bard to the pen, where he is desperately needed.
Their approach to Oswalt was on the Sox's terms, with no desperation, and presumably the $$$ reflected that. I'm sure he could be persuaded now that matters may be more pressing. Would he be a better bet than Cook? And what happens to Cook (or Doubront) when Matsuzaka gets back?
If I was Bard I'd be mightily fucked off, and there were hints he may be a good starter in time, but having him close, Aceves available to pitch in high pressure situations in the 6th or 7th or 8th or all of them like he did last year, while Morales and Padilla, and Hill and possibly MIller when they're ready, to be used as and when, even Melancon when he's rebuilt some confidence in AAA, and the bullpen looks a lot less woeful.