October 20, 2007


A-Rod may leave Yankees: Scott Boras, the agent for star baseball player Alex Rodriguez, says turmoil surrounding search for new manager may keep him from staying in New York. (Chris Isidore, October 20 2007, CNNMoney.com)

Scott Boras, the agent for star New York Yankees third baseman Alex Rodriguez, told CNNMoney.com Saturday that the current uncertainty surrounding the team, including its managerial opening, will make it difficult for his client to sign with the Yankees by the deadline given by team management. [...]

In addition to the managerial change, George Steinbrenner, the dominating owner who has called the shots for the team since he bought it in 1973, is reported to be in ill health. The team has acknowledged he is bringing his sons Hal and Harold into the decision making process.

Boras says all this will make it difficult for Rodriguez to reach an agreement with the Yankees by the deadline. Boras also suggested Rodriguez would want to see if the teams' other free agents -- catcher Jorge Posada, reliever Mariano Rivera and starting pitcher Andy Pettitte are returning to the team, along with outfielder Bobby Abreu, for whom the Yankees hold an option on whether to bring him back or let him be a free agent.

"Without Pettitte, Rivera and Posada, it's not the same team," Boras said. "He's held accountable for being on a playoff team and winning in the playoffs."

Boras didn't seem concerned over the Yankees' statement that it would not enter a bidding war for Rodriguez if he decides to opt out of the contract in the next few weeks.

A-Rod: A bargain at $300 million ( Chris Isidore, October 20 2007, CNNMoney.com)
Vince Gennaro, a consultant to numerous major league teams and the author of "Diamonds and Dollars," a book about the economics of baseball, has done an analysis that suggests A-Rod could produce $48 million per year in revenue and asset appreciation for the Yankees, allowing the team to pay him $34 million in salary, along with a 40 percent luxury tax, and still break even.

Gennaro's estimate includes an extra $3 million a year benefit to the YES Network, the regional sports network of which the Yankees own 36 percent, along with a $9 million a year in the estimated increased value of that stake.

CNNMoney.com sister publication FORTUNE has reported that the Yankees are looking at a possible sale of the team's ownership interest in YES, and that it could fetch $3.5 billion for the entire network. So re-signing A-Rod could be important for the Yankees in order to maximize the network's value.

The Sox will pay him $300 million in a heartbeat just because of what he does for NESN. The issue in this contract isn't money--he can't get what he's worth--but how many years he insists on.

Posted by Orrin Judd at October 20, 2007 5:18 PM
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