Forget about Alex Rodriguez giving any significant discounts to the Yankees.
In fact, his agent, Scott Boras sold his top client not only as Babe Ruth, but also as a TV star with as much value to a regional sports network such as YES as Jerry Seinfeld once had to NBC.
And Boras also slyly noted that among the organizations that run regional sports network are the Yankees’ main two nemeses, the Mets and the Red Sox, and that the Angels are considering starting one next year. The Angels have been heavily linked to A-Rod should he opt out of his contract.
Boras clearly is aiming to outdo Rodriguez’s current 10-year, $252 million contract. Boras has indicated in the past that the first $30 million-plus-a-year player is near.
“What I think it is hard for fans and everyone to understand is we have a new dynamic in baseball, and it is the valuation of the regional sports networks,” Boras said yesterday by phone.
Boras explained that more franchises, such as the Yankees, own the network on which the club’s games are the main programming. Boras said the network values have skyrocketed and the fees paid from the network to the teams exist outside the collective bargaining agreement and, therefore, “serve like a bank to the owners.”
A-Rod‘s value to such a network, Boras said, was exemplified when YES’ ratings stayed high early this year despite Yankees struggles because fans were drawn to Rodriguez’s star power and historic start. Boras also said the Yankees never had drawn 4 million spectators before Rodriguez’s arrival in 2004. Boras’ point is that his client creates revenue in ad rates and at the turnstiles that should be factored into negotiations. He even invented his own acronym (IPN) to describe a player such as Rodriguez that he claims increases organization value via Iconic magnetism, historic Performance and Network value.
“Such a player has something people watch independent of a team,” Boras said.
Rodriguez will soon see how far the Yanks will go. Between now and 10 days after the World Series, he can opt-out of the final three years and $91 million in his contract, $21 million of which would still be paid by the Rangers.
Since spring, Brian Cashman has vowed the Yankees would keep Rodriguez only if they got the Rangers-created discount. The Yankees GM hedged a bit yesterday by saying that would be his “strong recommendation. But there will be more people in the process.”
Cashman’s comments came several days after George Steinbrenner was quoted as saying he wants and expects to keep A-Rod. Clearly Cashman knows The Boss will have the final say.
However, the front office has privately thought that if Rodriguez opted out, it would be folly to keep negotiating because it likely would mean Boras has a strong market. Thus, if the Yankees kept negotiating during full free agency they could chase a star all winter who likely would sign elsewhere.
But Boras said it would be “presumptuous” of the Yanks to expect more of a break then the $22 million Texas has paid the past four years to augment Rodriguez’s contract. He said it was possible the Yankees could offer enough to keep Rodriguez from opting for free agency. But historically his clients tend to see what the market offers. And in this case, Boras thinks he is dealing with a new market for a unique player.