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River Ave. Blues » Yanks, A-Rod settle on 30 million reasons to break the HR record

Yanks, A-Rod settle on 30 million reasons to break the HR record

November 25, 2007 by Benjamin Kabak 18 Comments

Wasting money on middle relief
Gammons: Twins want Hughes, Melky, A-Jax

Because it’s been five whole days since we last heard from Alex Rodriguez, let’s check in on how everyone’s favorite third baseman is doing. Courtesy of The New York Times and Murray Chass comes the news that the Yanks and A-Rod have cleared that last hurdle: The two sides have figured out the home run incentive clauses of A-Rod’s new contract.

Chass details how A-Rod could earn up to $30 million more if he tops various home run milestones:

Rodriguez will make $275 million over 10 years in his Yankees contract, which becomes the biggest baseball contract ever. Terms of the contract are expected to be confirmed early this week.

The nonguaranteed part of the contract will be the marketing agreement, which the commissioner’s office and the players union have approved. The Yankees and Rodriguez had to keep changing the nature of the agreement to gain approval because players cannot receive bonuses for achievements like home run totals.

In the approved agreement, Rodriguez will share in revenue the Yankees generate by marketing his home run milestones…Under the agreement, Rodriguez will receive $6 million when he reaches each of five milestones: the career home run totals of Willie Mays (660), Babe Ruth (714), Henry Aaron (755) and Barry Bonds (762), and when he breaks the record…

He will get the marketing money in exchange for making certain appearances linked to his home run milestones over and above what players are required by their contracts to do.

Those are some pretty lofty numbers both in terms of home run and salary, and of course, we won’t know how much of this non-guaranteed $30 million A-Rod will see until he actually reaches — or fails to reach — those home run plateaus.

With these new performance/marketing bonuses in place, A-Rod is sacrificing certain other incentive clauses. Gone are the monetary rewards for All Star Game appearances and MVP awards. For $27.5 million, A-Rod better be making the All Star team.

So in the end, A-Rod gets his deal potentially worth over $30 million. If all of these bonuses kick in, he’ll earn $305 million over 10 years. It’s what the Yanks were willing to give him in October before he opted out, and it is seemingly what he and Boras thought he would be getting anyway. But, as we’ve said before, the Yanks turned this deal on their terms. Hank Steinbrenner, the new face behind the game’s most powerful franchise, faced down the game’s most powerful agent and player and won. We get A-Rod; the Yanks get their win. Sounds good to me.

Wasting money on middle relief
Gammons: Twins want Hughes, Melky, A-Jax

Filed Under: News Tagged With: Alex Rodriguez

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