A-Rod deal is a winning move
December, 14, 2007
When news of Alex Rodriguez's decision to reopen negotiations with the Yankees became public, the most common media reaction was that this was a defeat for his agent, Scott Boras. Now that we've seen the contract that resulted from those negotiations, it's clear Boras and Rodriguez received almost everything they wanted before A-Rod opted out. Boras said A-Rod should receive a ten-year deal. He did. He said Rodriguez should be the game's first $30 million per year player. He's guaranteed $28.4 million per year and will reach $30 million average annual value with some very achievable incentives. Rodriguez said he wanted to stay a Yankee. He will. And even though Boras was not directly involved in the negotiations with Hank Steinbrenner, Boras remains A-Rod's agent and still receives his commission. If this is a defeat, it's a little scary to think what a Boras victory might look like. So when A-Rod says that opting out was a "debacle," don't buy it. It turned out to be the perfect strategic move. One final thought on the contract is worth mentioning. The total is being reported as $275 million over ten years, which is the total in guaranteed money due to A-Rod from the Yankees over that period. But there are several wrinkles that make that figure misleading.