The Yankees feel they have a strong case that the team should not be obligated to pay Alex Rodriguez for a series of home run milestone bonuses included in his deal with the club, Jon Heyman of CBSSports.com reports. Rodriguez’s contract provides that he can earn $6MM for reaching each of five career home run tallies, starting with his 660th, but the club is said to have begun developing a legal strategy to avoid any such pay-outs.
The reason for the club’s confidence is apparent in the new details on those clauses provided in Heyman’s report. Rather than simply promising Rodriguez the sum if and when he hits the necessary home run, the language provides that the club need not “exercise its right to designate” a home run as a milestone if that “decision is made in good faith and in accordance with the intent of the parties.”
As I explained in detail a while back, it already was at least plausible to think that the Yankees could craft an argument that the marketing bonus pay-outs should be invalidated. That the actual deal language seems to contemplate scenarios where a bonus would not be paid would appear to lend significant credence to such an attempt. Of course, Rodriguez is also promised another $61MM for the next three seasons.
Of course, as Heyman notes, this matter is not likely to be resolved quietly unless the sides agree to some sort of settlement. Particularly given the contract’s reference to the “intent of the parties,” any kind of formal dispute would seem quite likely to involve testimony from Rodriguez, his agent at the time of the deal, Scott Boras, and top Yankees brass. Indeed, Heyman indicates that Rodriguez’s camp has already sought to engaged Boras regarding obtaining his testimony, with the super-agent rebuffing those initial advances. And, of course, the MLBPA would again be in a difficult position but would almost certainly seek to uphold the marketing provisions.
Adding to the complexities is the fact that Rodriguez apparently is not currently retaining an agent. Sources tell Heyman that Rodriguez has “parted ways” with Dan Lozano, the representative he had hired to replace Boras.
