Monday, November 26, 2007

A-Rod to Get His $300M

I suppose at this point the Boras-screwed-the-pooch meme is pretty much set in stone, but as we were all enjoying our tryptophan comas over the weekend, A-Rod's reps and the Yankees were putting the finishing touches on that $300M+ contract that no one was reportedly going to give him a couple of weeks ago:
According to a published report last night, the two sides have agreed upon a $30 million marketing package tied to home-run accomplishments that could make A-Rod's new deal worth $305 million over 10 years.

The base contract would call for Rodriguez to receive $275 million, with an additional $6 million going into his coffers each time he climbed a rung on the all-time home run list starting with Willie Mays at 660.

No, that's not guaranteed -- he does have to top Bonds' record in order to break the $300M barrier -- but he's got an excellent chance to do it. And if he doesn't break the record during the course of this contract, the mere $275M or so he gets will still represent wild overpayment because it means the guy averaged something around 25 homers a season or less during its duration. Upshot: call Boras a tool if you want, but he got his guy paid more or less what he had said he would.

By the way, I tip my lawyer cap to the gentlemen who came up with the "marketing agreement" charade the parties are using to circumvent the usual prohibition on stat-based performance incentives in player contracts. As if Rodriguez's schedule is going to be free for additional promotional appearances if and when he gets into Ruth-Aaron-Bonds territory. It's a performance incentive, pure and simple, and it's only getting a pass because someone was bright enough to characterize it in a way that makes people feel comfortable about something which would normally make them uncomfortable.

It's harmless in this instance -- I think stat-based incentives could be a good thing if the right stats are picked -- but there are a whole mess of things that impact our lives in significant and often negative ways that we never think about because someone -- probably a lawyer -- couched it just so as not to offend or cause us to think too hard.

4 comments:

64cardinals said...

So when Boston wants to circumvent the CBA and have Rodriguez come there at "less" money (which he was willing to do), the Players Association threw a fit and wouldn't allow it to happen.

But when the Yankees circumvent the CBA and Rodriguez gets "more" money, they step aside and let it happen.

Sounds like the kind of negotiations you would get with a prostitute. Only difference being, when you're finished with a whore, at least you feel like you've won the World Series.

Shyster said...

Works both ways, 64. Indeed, the owners have forever tried to take advantage in their own way, with their zealousness in enforcing rules being directly proportional to how much a particular rule benefits their side.

Not saying it's right. Just saying it happens, and that we're bound to be disappointed if we seek to moral examples in the words and deeds of business people.

64cardinals said...

I understand compeletly Shyster. I spent years working for the government. Nothing surprises me much anymore, and I've learned to just let most things go.

Unfortunately, like my 4-year old who will want to sit up on Christmas Eve waiting for Santa, I continue to have this dream that somehow baseball (the love of my live after my daughter) will still rise above this and actually be our field of dreams. Where all is right with the world and Musial and Gibson come back to lead us to victory.

But living in a fantasy world is fun sometimes, too.

Pete Toms said...

In the event the Yanks pay out any of this "marketing agreement" money, do they avoid paying luxury taxes on it?

Can anybody know at this point? If A Rod reaches the HR marks it won't likely be until the expiration of the current CBA, or will it?