It’s no easy task owning the New York Yankees these days. The salaries of New York Yankees baseball players cost around $195 million, total, and are going to increase as some contracts are up for renewal. The Yankees are expected to pay Mariano Rivera and Jorge Posada $40 million (each) over three years, and exercise $16 million options for right fielder Bobby Abreu and pitcher Andy Pettitte. But those numbers are peanuts compared to third baseman Alex Rodriguez, also known as a "A-Rod."
A-Rod leads the salaries of New York Yankees baseball players and all MLB players. And now, his ten-year $252 million contract is about to expire, meaning he will become a free agent. According to Sports illustrated.cnn.com, he will once again top the salaries of New York Yankees baseball players, if he accepts the Yankees’ anticipated offer of 4 to 5 years at $25 to $30 million annually. And on top of that, he’s still owed more money. How much? Keep reading.
How does your salary compare to the salaries of New York Yankees baseball players? Find out with the PayScale Salary Calculator.
Baseball Fantasy Salary Explained
You would think, for all this money the Yankees would at least make it to the World Series 🙂 As a long suffering Boston Red Socks fan – anyone remember Bill Buckner? That play is burned into my brain – another World Series victory is definitely sweet. I have to admit, the Red Sox are winning by following the Yankees game plan: spend a lot of money on players.
Following A-Rod’s baseball fantasy salary can be mind-boggling. A-Rod started with the Seattle Mariners in 1996, leaving just as I was starting to follow the Mariners, then left to sign a ten-year $252 million contract with the Texas Rangers. In 2004, the Rangers traded A-Rod to the New York Yankees who assumed the remainder of the contract, about $72 million for three years.
To help cushion the financial blow, the Yankees are supposed to receive a $21.3 million payment from the Rangers. However, the Yankees would lose the $21.3 million if A-Rod terminates the contract. So now the Yankees are offering the $25 to $30 million extension to keep Rodriguez (and the $21.3 million). A-Rod is also getting $3 million annually (deferred) from the Rangers, an assignment bonus at the time of the trade.
A-Rod Salary = Lowest Baseball Team Salary
Is A-Rod worth all this money? A $30 million deal would equal the entire salary for the roster of the Florida Marlins! Since A-Rod started in the major league in 1996, he has led in home runs, runs scored, runs batted in, total bases and extra-base hits. That’s more than the all-time leaders Hank Aaron (RBI), Barry Bonds (HR), Rickey Henderson (runs scored), and Pete Rose (hits) did prior to their 30th birthdays. A-Rod is also the youngest player ever to hit his 500th home run, breaking Jimmie Foxx’s record set in 1939.
Figuring Baseball Salary
As reported on Money.CNN.com, figuring baseball salary is based on more than just record books. A-Rod puts butts in the seats, at the stadium and on TV. According to Vince Gennaro, author of “Diamonds and Dollars”, a book about baseball economics, A-Rod could well bring in $48 million annually in revenue and asset appreciation for the Yankees, allowing the team to pay him $30 million in salary.
In his analysis, Gennaro estimates an extra $22 million a year in revenue for the YES Network, the sports network partially owned (36 percent) by the Yankees. Gennaro says that A-Rod has increased the value of the Yankees share in the company to the tune of $8 million a year. The Yankees may sell their share, reports money.cnn.com, so keeping A-Rod would help juice up the price of that potential sale.
Major League Baseball Salary Milestones
Another reason to hang on to A-Rod is the opening of the new Yankee stadium in 2009. Attendance will drop because the new stadium doesn’t hold as many people, but the Yankees expect a $100 million increase in revenue per year, thanks to higher priced tickets and luxury box suites. Having a big star like A-Rod would help keep prices and demand for tickets high.
Is A-Rod worth the money? Who knows? I know I am getting my money’s worth (cost: sitting through a few ads) when I have a chance to watch him play on TV.
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Dr. Al Lee