From Murray Chass -
Rodriguez and the team have reached an agreement in principle on the contract, said a major league official on condition of anonymity because he was not authorized to speak about the deal. Only contract language and a physical for Rodriguez remain to be completed.
Rodriguez will make $275 million over 10 years in his Yankees contract, which becomes the biggest baseball contract ever.
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.
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.
He will get the marketing money in exchange for making certain appearances linked to his home run milestones over and above what players are required by their contracts to do.
Interesting move by the Yankees. The 2007 Bill James Handbook gave A-Rod a 90% chance at 600 career homers, a 50% chance at 700 lifetime dingers, and a 31% chance at reaching 756 big flies. If you believe those marks, then there’s a good chance that Alex never sees close to 80% of that “milestone” money. Still, $27.5 million a year for the next decade ain’t exactly roughing it.