November 25, 2007
Career Incentives
The Yankees and Alex Rodriguez found a way around the ban on career incentives:
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. Rodriguez, who on Aug. 4 became the youngest player to hit 500 home runs, finished the season with 518. He needs 245 home runs to surpass Barry Bonds if Bonds, who has been indicted on perjury and obstruction of justice charges, does not play again.
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.
It looks like the Yankees believe Alex's milestones will generate a ton of revenue.
Embarrassing. The answer should have been "no", from both the union and the commissioner. This issue was bargained, and re-naming them "events" doesn't wash.
What's the rationale behind the ban on career incentives?
Not sure. Performance clauses have been banned for decades. This shrewdly gets around it, but if it's good for A-Rod, they have allow it for EVERYBODY. So get ready for the extravaganze surrounding Jerrod Saltalamacchia's fiftieth major league homer!
Not necessarily, Doug. There is zero marketing value to Salty's 50th, where as the marks Arod is targeting will draw sellouts, national/global media and round the clock coverage from the WWL. Pretty easy to draw a line unless the Union conned MLB in the language. Unlikely given the time it has taken to hammer the agreement out.
Arod is targeting will draw sellouts, national/global media and round the clock coverage from the WWL.
How much money is this really generating for NYY? Don't they have about 95% attendence as is?
