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Old November 26th, 2007, 10:04 AM   #1 (permalink)
Grandstander
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Default Foolish Bonus Move By Yankees

Making sure that the focus of future Arod milestone homeruns will be on money rather than the achievement, the NY Yankees have worked out a bonus arrangement where Rodriguez gets paid six million bucks each time he ties one of the top four on the homerun list.

What is the thinking with this? That unless they money is offered, Arod will lose interest in becoming the all time homerun champ? That someone with his money will actually be motivated by what amounts to pocket change for him at that point? Otherwise he might walk away from the contract prematurely?



ESPN - Slugging for dollars: A-Rod agrees to HR bonuses - MLB

Quote:
Under the agreement, which remains to be finalized, Rodriguez could receive $6 million each for tying the home-run levels of Willie Mays (660), Babe Ruth (714), Hank Aaron (755) and Barry Bonds (762), and an additional $6 million for breaking Bonds' major league record.
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Old November 26th, 2007, 10:20 AM   #2 (permalink)
nanwynnfan
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... and it is Bonds who has made HR records tawdry.
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Old November 26th, 2007, 10:25 AM   #3 (permalink)
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Quote:
Originally Posted by Grandstander View Post
Making sure that the focus of future Arod milestone homeruns will be on money rather than the achievement, the NY Yankees have worked out a bonus arrangement where Rodriguez gets paid six million bucks each time he ties one of the top four on the homerun list.

What is the thinking with this? That unless they money is offered, Arod will lose interest in becoming the all time homerun champ? That someone with his money will actually be motivated by what amounts to pocket change for him at that point? Otherwise he might walk away from the contract prematurely?



ESPN - Slugging for dollars: A-Rod agrees to HR bonuses - MLB
the idea is for arod to essentially profit-share in the additional revenue brought in through reaching these milestones. it does to some extent misalign incentives. not that hitting home runs is ever bad, but the hitters mentality should be somewhat situation dependent. and if arod's overriding incentive is to maximize his chance at hitting a home run regardless of the situation, then a disconnect is created.
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Old December 24th, 2007, 02:23 PM   #4 (permalink)
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How is passing Mays worth $6 million?
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Old February 3rd, 2008, 03:24 PM   #5 (permalink)
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Default Incentives...

Quote:
Originally Posted by Grandstander View Post

What is the thinking with this? That unless they money is offered, Arod will lose interest in becoming the all time homerun champ? That someone with his money will actually be motivated by what amounts to pocket change for him at that point? Otherwise he might walk away from the contract prematurely?

I think you're looking at this the wrong way. Arod will pass at least two of those four top guys on the list; that's not even a question. Arod doesn't need the motivation. I don't think he's going up their, seeing dollar signs; please, the guy makes a gazillion dollars, but blame his greedy agent Boras for his role in that. Arod, yes, he's making tons, but the guy plays the game the right way, is superior talented, and does want to win. He cares about his legacy, he really does. The incentive was just to stock pile his deal, backload the deal so that people don't scream about how much he's making. You sign him to a $275 million dollar deal, and it's like, ok; but, with bonus, he could surpass $300 million easily; I think it's more digestible; it's not guaranteed money, so no one screams about it.
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Old February 4th, 2008, 09:11 PM   #6 (permalink)
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AmusingA
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You sign him to a $275 million dollar deal, and it's like, ok; but, with bonus, he could surpass $300 million easily; I think it's more digestible; it's not guaranteed money, so no one screams about it.
Oh, right. I was badly fooled by that arrangement. And the common fan, while seeing no problem with someone making 275 million clams, would balk at the idea of 300 million clams....and we're talking about a guy who has already earned a couple hundred million dollars. But that critical difference, of masking the extra money in the form of milestone incentives, that makes me think he's squeaking by on just 275 million, not being greedy and going for the 300 million he is actually getting.

So, summing up:

275 million....fans will buy that.
300 million with 25 million disguised as incentives....fans buy that.
300 million....intolerable
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Old February 11th, 2008, 12:41 PM   #7 (permalink)
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they shouldn't have signed him to begin with. they could of used that money to sign several quality players.
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Old February 22nd, 2008, 06:05 PM   #8 (permalink)
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Really?

The Yankees aren't worried about money. They could have signed several quality players AND kept A-Rod for $300 mil.

Some are mistakingly believing that they didn't make the Johan Santana trade because of what it would cost to extend his contract. But that's ignorant.

It was obviously because they didn't want to give the Twins the TALENT in return.
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