• A-Rod’s Impact To Yankees

    Posted by on November 21st, 2007 · Comments (2)

    What’s A-Rod worth to the Yankees? Here’s two suggestions via a report in USA Today:

    Rodriguez’s contract could be worth $304 million with incentives, according to a person familiar with the negotiations. Gennaro, a consultant to the Cleveland Indians and author of the new book Diamond Dollar$— The Economics of Winning in Baseball, lists six teams that could have afforded to pay Rodriguez up to $30 million a year and still break even on that investment, provided they made the playoffs every year: the Yankees, Boston Red Sox, New York Mets, Chicago Cubs, Los Angeles Dodgers and Los Angeles Angels.

    The Yankees stand to make the most from his presence — about $45 million annually, by Gennaro’s calculations, based on a formula that takes into account attendance, broadcast fees, concessions, merchandising and other forms of revenue. They’re also likely the only club that can afford to pay a luxury tax and still recoup its investment on Rodriguez.

    The biggest factor in the equation?

    “A-Rod’s ability to contribute eight or nine wins on the playing field to a team that can turn those wins into a playoff spot,” says Gennaro, adding that it makes no financial sense for non-contenders to take on such a high-salaried player. “When a team reaches the postseason, there’s a windfall of revenues that get unlocked within the next three, four, five years.”

    Citing statistics in the ESPN Baseball Encyclopedia, which he edits, Gillette said A-Rod ranked second in the AL last season in “player wins” above the average performer with 5.2. So a .500 team would be boosted to 86-76 with him and a 90-win team would improve to 95-67, possibly the difference between making the playoffs and staying home.

    Hmmm…but, what about in years like 2004 and 2006, when A-Rod has a “player win” total closer to three than above five? Does Alex have to have an MVP season to cover his expense?

    Comments on A-Rod’s Impact To Yankees

    1. David
      November 21st, 2007 | 5:16 pm

      I’m surprised A-Rod only ranked second in the AL last season in “player wins” above the average performer. I wonder who ranked first.

    2. Straylightrise
      November 23rd, 2007 | 1:19 am

      Thats still a pretty small sample size and to say a player wins x games alone is still a reach. I would believe that A-rod would have to either perform well in the playoffs or have good steady numbers that for most players would be amazing. To anyone who doesn’t think A-Rod is the best player in baseball well their quite silly. A-rod will break the Home Run record. And heck…all he needs is 1 ring to be better than the cheat who owns it now.

    Leave a reply

    You must be logged in to post a comment.