can someone clarify ARods contract for me

by mickey07 on Aug 19, 2007 1:01 PM EDT Comment 10 comments

There was a lot written on the LoHud blog concerning ARods contract and Cashman's position on what the Yankees can or cannot do. I'm a little confused about the ARod contract and maybe some of you can help me better understand the situation.

At the end of this year, ARod has his first opt out clause. Obviously one of the clauses that makes ARod attractive is that there is a flow of cash coming from Texas. I believe Cashman said he would not renegotiate if it meant losing the Texas money to keep ARod.

Couldn't the Yankees negotiate a "supplemental" contract with ARod - for the difference between what he would make under the existing contract and whatever new money we would have to pay?

Example (I'm not sure of the actual numbers) If ARod is due $25MM in '08 from the existing contract including whatever Texas money, and the new price to keep ARod for '08 is $30MM, could we just write a new contract for $5MM in addition to the existing contract?

I can understand that Texas might have a clause in the existing contract that voids their payments if the contract is cancelled through renegotiation, but is this "supplemental" contract a way around that?

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Supplemental

is another word for extension.
It doesn't make sense to give him more money and not secure more years.

"Have faith in the Yankees, my son. Think of the great DiMaggio."

by jscape2000 on Aug 19, 2007 1:09 PM EDT reply actions 0 recs

so...

does that mean we lose the Texas money with an extension?

In his chase for No. 500, ARod broke one of Mantle's records. He took one more at bat than Mickey to get there!

by mickey07 on Aug 19, 2007 3:42 PM EDT reply actions 0 recs

I don't thnk so

I do not think we will lose Texas money if Alex signs an extension to his current contract. We lose Texas money if Alex opts out of his current contract and hits the free agent market.

by OC Yankee Fan on Aug 19, 2007 5:26 PM EDT up reply actions 0 recs

Correct

Extention means the Texas cash still comes in.
When Cashman says no negotiations if Arod opts out, I suspect that he's heading off Boras' claim that Arod should see a share of the money that Texas is sending the Yankees. Boras tried to find a loophole to get Dice-K some of the posting fee...

"Have faith in the Yankees, my son. Think of the great DiMaggio."

by jscape2000 on Aug 19, 2007 7:17 PM EDT up reply actions 0 recs

Huh?

If Arod opts out, the Texas money - and all of what's left of the $252 million - disappears. Opting out is the equivalent of ripping up one's contract - there would be no Texas money for anyone. And under the current deal Arod is getting all that money anyway. It just means the Yankees have to pay him less.

By making it publicly clear that Arod will get no money from the Yanks if he opts out, Cashman is playing a game of chicken with Boras. If Boras believes the Yanks will not bid once Arod opts out, it would be in his clients' best interest to negotiate an extension with the Yankees and not opt out, because opting out would take the team with the biggest checkbook out of the running.

I think Arod is here to stay.

by matthaggs on Aug 19, 2007 10:58 PM EDT up reply actions 0 recs

Clarification

"Arod is getting all that money".
Yes.
What I meant to say was, Boras will probably suggest that the Yankees should pay Arod as a $30 million/year player (or however much he's worth) plus the $8 million/year that Texas is throwing in. This would effectively negate the discount the Yankees have received from Texas (Arod is 'only' receiving about $17 million dollars from the Yankees at the moment).

"Have faith in the Yankees, my son. Think of the great DiMaggio."

by jscape2000 on Aug 20, 2007 7:31 AM EDT up reply actions 0 recs