Actually, it's quite the opposite. He doesn't get a lot of press coverage for it, but behind the scenes George Steinbrenner is actually one of the most generous people you'll ever meet. Anyone who used to play for him (including many who didn't really get along with him) pretty much has an open offer to come back and work for the organization after their playing days are over.
The Sal Maglie situation also comes to mind. A few years ago Steinbrenner learned that a blind, destitute Maglie was wasting away in a Florida hospital, suffering from diabetes. Steinbrenner actually hired him as a "director of scouting" or some other position whose duties he couldn't possibly fulfill -- just to get him on the team's payroll so he could earn an income. What's important to note here is that Maglie never even played for the Yankees -- and his two former teams (the Dodgers and Giants) apparently didn't care enough about him to do such a thing.