what will happen to A-rod???

[CrespoBlows]

Originally Posted by jacksonianmarch

that wont happen. If he opts out, the yankees wont pay him dick. If he doesnt opt out but threatens to, the yankees can extend him and keep Texas' pay.

You don't think he's going to test the market?

Correct me if I'm wrong, but in order to negotiate with other teams, don't you have to be a free agent?

[a700hitter]

Originally Posted by CrespoBlows

You don't think he's going to test the market?

Correct me if I'm wrong, but in order to negotiate with other teams, don't you have to be a free agent?

If he opts out, the Yankees will not negotiate with him and that would take out one of the few teams that could afford him. I think the Yankees extend him and use the $30 million from Texas to help them do it.

[One Red Seat]

Originally Posted by CrespoBlows

I'm not sure, but I heard that if A-Rod opts out of his current deal, that would terminate whatever Texas has to pay to the Yankees. If he doesn't opt out, and picks up his player option, Texas is still on the hook.

From all indications, I hear Rodriguez is going to opt out, and then sign a new contract with the Yankees.

That would free Texas from the deal.

Absolutely, opting out of this contract removes Texas from the equation. I don't think anyone has questioned that, which is why I took your comment to apply to the extension discussion, because that is the only way Texas' money is involved. Apologies for the assumption, but I didn't think you were arbitrarily throwing that out there.

I think a700 has it right. The Texas money gives them a good amount of leverage and will enable them to go beyond the market in an extension. If it's only about money, he's staying in NY. If anything else is going to impact the decision, he's opting out, IMO.

[jacksonianmarch]

Originally Posted by CrespoBlows

You don't think he's going to test the market?

Correct me if I'm wrong, but in order to negotiate with other teams, don't you have to be a free agent?

The yankees and Boras will play a game of chicken.

[CrespoBlows]

Wait.

If Alex Rodriguez signs an extension with the Yankees, say a five year deal, wouldn't that technically be a new contract, which would free Texas from any salary obligation?

I don't know the exact terms of the contract, but I assume it was for only this current deal.(the 10 year $250 million)

The Yankees couldn't just use Texas' money to give A-Rod a new contract. A contract extension is still a new contract.

[jacksonianmarch]

Originally Posted by CrespoBlows

Wait.

If Alex Rodriguez signs an extension with the Yankees, say a five year deal, wouldn't that technically be a new contract, which would free Texas from any salary obligation?

I don't know the exact terms of the contract, but I assume it was for only this current deal.(the 10 year $250 million)

The Yankees couldn't just use Texas' money to give A-Rod a new contract. A contract extension is still a new contract.

an extension would NOT negate what Texas would throw the yankees way since the original contract is still in place for the next 3 yrs.

the point is that 46 mil or so is still being sent from Texas for the next 3 yrs. Lets assume ARod gets extended for 3 seasons, then he would make 27 mil a yr from 08 to 13 yet the 46 mil from Texas would be collected through 2010.

[CrespoBlows]

Originally Posted by jacksonianmarch

an extension would NOT negate what Texas would throw the yankees way since the original contract is still in place for the next 3 yrs.

Is Texas paying a lump sum?

I was under the impression that it was yearly.

[jacksonianmarch]

Originally Posted by CrespoBlows

Is Texas paying a lump sum?

I was under the impression that it was yearly.

it is yearly. 46 mil over the next 3 seasons.

[a700hitter]

Originally Posted by jacksonianmarch

The yankees and Boras will play a game of chicken.

Boras has a very good idea of ARod's value on the open market, and he knows that the Yankees are one of the few teams that can afford him. With $36 million from Texas, the yankees will be able to put together a package that will meet Boras's expectations.

[CrespoBlows]

Originally Posted by jacksonianmarch

it is yearly. 46 mil over the next 3 seasons.

Forgive me, but does Texas owe that money regardless, or just under the terms of the current contract?

I could see where Texas could take issue with Rodriguez signing an extension. They agreed to pay the money in the 10 year deal, but not the six year deal he would sign.

On the other hand, the Yankees could agree with Rodriguez to pick up the options, and then extend him after that. (Which is what I think you're talking about.)

[CrespoBlows]

Rodriguez may void after 2008 or 2009 unless club increases 2009-10 salary by $5M/year

Rodriguez can get a bump to $32 million in 2008 and 2009.

I guess the deal would be:

2007 - $27 million
2008 - $32 million
2009 - $32 million
2010 - (whatever the extension the Yankees agree on)

He's going back to New York. The only team that's going to give him $32 million annually.

[a700hitter]

Originally Posted by CrespoBlows

Forgive me, but does Texas owe that money regardless, or just under the terms of the current contract?

I could see where Texas could take issue with Rodriguez signing an extension. They agreed to pay the money in the 10 year deal, but not the six year deal he would sign.

On the other hand, the Yankees could agree with Rodriguez to pick up the options, and then extend him after that. (Which is what I think you're talking about.)

There is 3 years at $25 million/year on the current contract. That has to stay intact to get the $36 million from Texas. No teamwould come up with more than $25 million/year on the free market, so ARod has a pretty sweet deal through 2010. The Yankees would agree to a new contract extension beginning in 2011 for another 3 or 4 years at $30 million or so per year. The next 3 years would cost the Yankees only $39 million-- a bargain. The yankees would make up for this bargain by paying top dollar on the extended years.

[jacksonianmarch]

Originally Posted by CrespoBlows

Forgive me, but does Texas owe that money regardless, or just under the terms of the current contract?

I could see where Texas could take issue with Rodriguez signing an extension. They agreed to pay the money in the 10 year deal, but not the six year deal he would sign.

On the other hand, the Yankees could agree with Rodriguez to pick up the options, and then extend him after that. (Which is what I think you're talking about.)

The only way the yankees get that money is if the contract that is in place stays in place. Texas agreed to pay a certain percentage per yr of the existing contract at the time of the trade. An extension keeps that existing contract in place, it just adds yrs to it. So the yankees can still get the money from texas. Once he opts out and that contract is moot, the money from texas is forfeit. Hence, the yankees have an upper hand on anything anyone can give him, because they already have 46 mil paid by another team. Assuming you consider the fact that you will have to give him a set amount over a large number of yrs. So assume the yankees extend him for 3 yrs at 27 mil per, which is what he will make for the final 3 yrs of the deal in NY. That is 162 mil over the next 6 seasons. 46 of that will be paid by Texas within the first 3 yrs. So looking at it from a "what do we have to pay" scenario, the yankees can get ARod services over the next 6 yrs for 116 mil, which would come out to 19.3 mil per yr average out. Therefore, the yankees can offer the most without actually having to pay the most. Hence, the yanks should be able to give him the best deal.

Now if he hates NY and wants out, he likely wont get that kind of deal nor would he have the yankees bidding since the only way he opts out is if the yankees dont make a pre-emptive strike and essentially pull themselves out of the running. Allowing ARod to opt out and then signing him again is a bad business move and a waste of 46 million dollars.

[CrespoBlows]

Originally Posted by a700hitter

There is 3 years at $25 million/year on the current contract. That has to stay intact to get the $36 million from Texas. No teamwould come up with more than $25 million/year on the free market, so ARod has a pretty sweet deal through 2010. The Yankees would agree to a new contract extension beginning in 2011 for another 3 or 4 years at $30 million or so per year. The next 3 years would cost the Yankees only $39 million-- a bargain. The yankees would make up for this bargain by paying top dollar on the extended years.

waived NTC 2/04, allowing trade to NY with 7 years/$183M remaining
Texas agreed to pay remaining $4M in signing bonus & $67M of remaining $179M in salary
New York agreed to pay $112 of the remaining $179M in salary

Texas is on the hook for about $9.5 million annually.

That would give the Yankees an additional $28.5 they could put toward Rodriguez. I think the Yankees would be paying a little bit more than $39 million, (probably closer to $50) but it's still a huge bargain. (For those three years, at least.)

[CrespoBlows]

Originally Posted by jacksonianmarch

The only way the yankees get that money is if the contract that is in place stays in place. Texas agreed to pay a certain percentage per yr of the existing contract at the time of the trade. An extension keeps that existing contract in place, it just adds yrs to it. So the yankees can still get the money from texas. Once he opts out and that contract is moot, the money from texas is forfeit. Hence, the yankees have an upper hand on anything anyone can give him, because they already have 46 mil paid by another team. Assuming you consider the fact that you will have to give him a set amount over a large number of yrs. So assume the yankees extend him for 3 yrs at 27 mil per, which is what he will make for the final 3 yrs of the deal in NY. That is 162 mil over the next 6 seasons. 46 of that will be paid by Texas within the first 3 yrs. So looking at it from a "what do we have to pay" scenario, the yankees can get ARod services over the next 6 yrs for 116 mil, which would come out to 19.3 mil per yr average out. Therefore, the yankees can offer the most without actually having to pay the most. Hence, the yanks should be able to give him the best deal.

Now if he hates NY and wants out, he likely wont get that kind of deal nor would he have the yankees bidding since the only way he opts out is if the yankees dont make a pre-emptive strike and essentially pull themselves out of the running. Allowing ARod to opt out and then signing him again is a bad business move and a waste of 46 million dollars.

Thanks.

I didn't know that Rodriguez salary was due to get bumped over the next three years anyway. I don't see any team coming even remotely close to matching the Yankees offer.