$275 Million Well Spent

Thanks to The Mitchell Report not much has been made of the A-Rod signing, when really it should be the biggest baseball story going. The best player in baseball re-signs with the marquee team for 10 years and no one notices?

The contract break down looks like this (all numbers in millions):

2008 27
2009 32
2010 32
2011 31
2012 29
2013 28
2014 25
2015 21
2016 20
2017 20
Bonus 10
Total 275

The money earned in this contract actually lessens over time, much like A-Rod’s performance will likely decrease as he nears 40. He stands to make $6 million for each homerun milestone he achieves, though he is agreeing to provide certain marketing opportunities to the Yankees. Clearly, the Yankees want him to achieve these milestones, as I’m sure they know they will ultimately make money from it.

The crazy thing about this deal is the very realistic chance that A-Rod will be a relative bargain in his later years. While he may no longer be quite the same player (and could very well be playing first base) the revenue he creates and the production he’ll provide should still be significant. And with salary inflation, $20 million might not be that much money in the year 2016. I mean, if Torii Hunter is worth $18 million now…

10 More Years! 10 More Years!


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