Report: Yankees have insurance for most of A-Rod’s deal
ByVia Ken Rosenthal & Wally Matthews: The Yankees are insured for at least 70% and possibly even 100% of Alex Rodriguez‘s contract should his latest hip injury be so severe that he’s unable to play going forward. There are conditions that would have to be met (so many days on the DL, etc.) before the insurance payouts are triggered.
A-Rod, 37, is still owed $114M over the next five years. I doubt this new injury is that debilitating — Brian Cashman said doctors informed him Alex would have zero restrictions following the procedure and rehab — but I guess it’s good to know the team is covered in case it is. A-Rod would still get paid and his salary would still count against the luxury tax, so the only way the insurance money would be reinvested in the team would be if the Yankees increase payroll back over the luxury tax threshold in 2015.
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Maybe the Yanks can get Arod to say he cant play anymore:)))))
we need all RAB members to take up a collection to pay for a lawyer. WE NEED AN OUT OF THIS CONTRACT!!!
Mo and Larry have spoken can Curley be far behind.
Dewey Cheetum & Howe LLP
Wow, there’s an insurance company out there even stupider than Hank Steinbrenner.
Insurance companies make ungodly amounts of money. They haven’t paid out a penny on A-Rod and they’ve been paid plenty so far. It’s a beautiful business to be in. It’s like a casino. They love paying out to winners, because the loser line is so much longer.
Warren Buffet does a lot of this type of insurance. Would be nice if he can’t play anymore, and insurance covers the dollars, and the insurance premiums group for all the other baseball teams to cover it
But I’m sure it still hits the Yanks for calculating salary tax.
How much would it cost to gilooly him?
Unfortunately, I read that his salary will still count against luxury tax even if insurance is making payments…It certainly does free up a lot of cash though, and maybe makes the team willing to surpass the limit. That is, of course, if insurance is ever needed.
I think it was Marchand who tweeted it.
It won’t be. At most, maybe they collect money for one season if he’s out for the season, which he won’t be. I think it’s very unlikely the full ten-year contract was insured. Probably just a portion and that could be even be expired.
The insurance payout would make it easier to cut the cancer aka Aroid out of the team.
No it wont
Maybe RAB has an insurance to cut the dumb out of your brain. Or maybe we can negotiate with you to see if you retire from here!!
Who knew A-Rod’s hip problems would be the saving grace of that horrible deal?
Finally a ray of hope.If he has to retire,the Yanks can recoop most of the awful deal with the devil.I bet he doesn’t play a game at 3B this season.
So basically, the Yanks and Arod are protected against themselves for this contract, and only the fans pay the price (27mil hit against 189mil budget). I’ll sleep well knowing Hank and Hal and Alex are covered.
I just hope Girardi and Cash give Adams and Joesph a shot. I’m not happy to heat Cash talking with Youkilis’ agent. A slow, aging, defensively challenged, K machine is the last thing I want to see on this team.