Yankees GM Brian Cashman confirmed long-standing reports that the club does not intend to pay Alex Rodriguez a $6MM “milestone” marketing bonus for his 660th home run, as Bob Nightengale of USA Today reports.
“We have the right, but not the obligation to do something, and that’s it,” Cashman said. “We’re going to honor our responsibilities of the contract. So there is no dispute, from our perspective.”
Of course, the move was widely expected long before Rodriguez matched Willie Mays with a pinch-hit blast at Fenway. Though only $6MM is directly at issue, avoiding the payment would actually keep $9MM in the Yankees’ coffers because of the luxury tax that would come with it.
If and when a grievance is filed, the issue will be one of contract interpretation for a unique clause. Jon Heyman of CBSSports.com reported key details of the clause back in February, writing that the provision permits New York to elect whether or not to “designate” various record-tying home runs as “milestones” — so long as the “decision is made in good faith and in accordance with the intent of the parties.” As I explained at the time, and as Cashman’s comments reflect, that language gives facial validity to the Yankees’ position.
Of course, an arbitrator will ultimately likely be left to decide the matter, and the MLBPA is “prepared to intervene on Alex’s behalf,” spokesman Greg Bouris said, via Steven Marcus of Newsday. I’d expect that the union and/or Rodriguez will look to explore all aspects of the matter, potentially including the Yankees’ knowledge of Rodriguez’s PED usage and the negotiations that took place at the time that the contract was agreed upon.
Draven Moss
It will be an interesting process to say the least. I don’t think the Yankees will get off the hook though.
Joseph Anderson
“The Yankees have the “right to designate” the home runs as historical milestones, according to the wording.
“It’s the sole discretion of the New York Yankees to determine whether
each of these milestones is commercially marketable as the home-run
chase,” according to the contract. “The Yankees have the right, but not
the obligation, to determine whether it’s a commercially marketable
milestone.””
Draven Moss
Possibly, but then you also have the language that says as long as the “decision is made in good faith and in accordance with the intent of the parties”. I can’t see any other intent from the Yankees other than to want to avoid paying A-Rod the money, and it is certainly not within the intent at which the deal was agreed upon. So I still don’t see the Yankees getting away with it, and I’m sure the MLBPA will make sure of it.
JacobyWanKenobi
The time and place he hit the home run was totally worth 6MM imo
Sleeper
I think the MLBPA is going to make a bigger deal of it than A-Rod himself, at least that’s the vibe he’s giving off, he seems to just want to focus on playing baseball. I also think whether or not the Yankees have a foot to stand on in this case will come down to specific wording of the separate marketing deal, though I don’t see this being an easy argument either way it falls. We can all agree that the milestones means a lot less than they could have had he been clean, but questioning it’s marketability is a bit of a different conversation. I wish they could reach a resolve that satisfies both sides without causing turmoil.
Daniel Miller 2
I think you’re giving A-Rod a little too much credit. He doesn’t need the 6 million dollars, but if nobody else was going to fight for it, he certainly would. Because the players’ union is going to grieve it, A-Rod can pretend like it doesn’t really matter to him. As if that’s going to repair his reputation as the most hated athlete in the world…
Sleeper
I’m not trying to give the guy more credit than he deserves ,but if you see how he’s responded to the questions he’s been asked about this topic, he doesn’t seem concerned about it right now, and just shifts focus to playing baseball. Would he fight for it without the MLBPA? I can’t say that for sure, A-Rod of the past would, that’s for sure. He’s really seemed to reach a new level of understanding though, like him or not, he seems to finally understand the magnitude of his mistakes. We’ll see how things pan out ultimately, that’s just the face he’s wearing right now.
David Coonce
Most hated athlete in the world? Have you ever heard of Floyd Mayweather, Jr.?
brickman
Or O J Simpson?
David Coonce
Good one; Aaron Hernandez?
brickman
Good one also but too soon.;)
brickman
What universe do you live in where people are only paid what they need?
Joseph Anderson
Read the actual language of the contract and you’d think otherwise. If they don’t find it “commercially marketable” than they don’t have to pay. They can really say whatever they want and not pay him.
Sleeper
If you had read my other comments in this post, you’d have saved yourself some time saying this. I don’t think it’s very clear cut for either side.
Mikey
I know it’s easy to say since it’s not our money, but it really does look to be a very petty move. I’d agree with the stance more if he was still being provocative, but he’s been the model student since he came back. Plus, he’s one of the better hitters on the team right now – in my opinion they should put it behind them and make it clear that they’re more interested in winning than getting into a legal dispute with one of their best players mid-season over what is, to them, comparatively little money.
Plus, they’re trying to claim they didn’t know anything about his PED use in 2007? Seriously, come on.
NickinIthaca
Yeah – not sure why they’re deciding to rock the boat during the season .
BigGameJames
George used to be very familiar with digging into players personal lives but the professional doctors, coaches, trainers, executives and countless former athletes never caught on. How many times has A-rod been evaluated and examined by team DR.’s? NY was either allowing their star to cheat or had no interest in knowing what their employee was doing to boost his production to historical proportions. A-rod’s been punished for cheating already, has NY faced anything remotely close to being punished, besides losing Alex and gaining his ’14 $.
manic mailman
So when do the Yankees give back their 2009 World Series championship due to A-Rod’s PED use?
JacobyWanKenobi
At the same time the Sox give back 04 and 07 for Manny and Ortiz.
Otis Firefly
The Sox (who have nothing to do with this btw) have no trouble following contracts and paying their players. What does any other player in MLB have to do with the yankees not paying up on Arods’s legally binding contract?
Sleeper
I think he was basically saying that thinking NY should be giving back their WS championship over all of this is a silly assertion in general, and he said something comparably ridiculous so it’s understood how off base the original thought is.
JacobyWanKenobi
This.
Draven Moss
I’m pretty sure the comment made was suppose to highlight the hypocrisy of the Yankees not willing to pay A-Rod’s contract, but feeling quite the opposite back when they won the 2009 World Series. I don’t think the comment was meant to be literal, just highlighting the hypocrisy.
Mark 21
And as I said below every other team that won a title in the last 40 years cause every team has or had a ped user of some kind on there team. And I mean every team so dont be that blind to not see it.
David Coonce
The last 40 years? Since 1975? I’d love to see your list.
Mark 21
So you telling me in 1975 there was no steroids in the league? Got news for you David they have been in the league since the early 20’s. I was just saying 40 years cause in the 70’s is when they became more a actual steroid then a amphetamine I believe. So what list would you like to see?
.
David Coonce
The list of the players on each championship team that used steroids or other PEDs.
NYM_Lagares
They should have to pay him or vacate every single win prior to his suspension, including the 2009 World Series. You weren’t complaining then, can’t complain now.
ieatcarrots
If you believe that, than you don’t understand what this is about. Read the supposed language of the contract and you’ll see they do actually have a case.
Dillinger91
That’s a psuedo-quote if I ever heard one.
0vercast
If they get to keep it, the Yanks should take that money and use it towards an anti-steroid campaign focused towards young athletes. It would be an exceptionally classy and symbolic move.
Dillinger91
I disagree. It would be very ostentatious of them to do that.
Bounded
This sounds like a lawsuit waiting to happen.
stl_cards16
“potentially including the Yankees’ knowledge of Rodriguez’s PED usage and the negotiations that took place at the time that the contract was agreed upon”
That could make things very messy. I would imagine the Yankees will look for a way to get this swept under the rug.
kungfucampby
MLBPA needs to go to the mattresses on this one. Can’t have ownership trying to void contracts based upon self-made-up provisions.
HubcapDiamondStarHalo
But isn’t it a completely different contract from his “playing” contract? It’s completely a marketing contract, as I understand it… I wonder if it even comes under the jurisdiction of the MLBPA.
BigGameJames
Just curious, how much has NY made off of marketing the 09 defending Champs? How many A-Rod MVP t-shirts were sold because of PED’s? I’d wager that the Yanks still come out ahead on marketing Alex vs $ paid to Alex.
pft53
MLBPA had to approve it. It was referenced in the players contract, so its all one contract. Its called a marketing agreement only so they could circumvent the CBA’s prohibition against performance bonuses . All players are marketed, and every milestone is, even w/o a contract.
Sleeper
“The provision permits New York to elect whether or not to “designate” various record-tying home runs as “milestones” — so long as the “decision is made in good faith and in accordance with the intent of the parties.” ”
That to me seems to be a pretty gaping loophole left in the deal by NY that may give them a level of validity here(like it or not), especially considering this was a separate marketing agreement and not your standard player’s contract. I’m not saying I like that there’s this type of loophole(or that I don’t), but if the deal was agreed to by all parties with such wording, it could be a contentious point.
NoAZPhilsPhan
“It is the sole discretion of the New York Yankees to determine whether each of these milestones is commercially marketable as the home run chase. The Yankees have the right but not the obligation to determine whether it’s a commercially marketable milestone.” One must also ask if it is feasible that the contract contains the words “good faith” only in regards to the Yankee organization but is never mentioned in regards to A-Rod. To me it is inconceivable that those two words would never be mentioned or applied to the player as well in a legally binding contract. “It is the sole discretion of the New York Yankees to determine whether each of these milestones is commercially marketable as the home run chase. The Yankees have the right but not the obligation to determine whether it’s a commercially marketable milestone.” One must also ask if it is feasible that the contract contains the words “good faith” only in regards to the Yankee organization but is never mentioned in regards to A-Rod. To me it is inconceivable that those two words would never be mentioned or applied to the player as well in a legally binding contract.
pft53
Don’t believe all those quotes are from the contract. Maybe the Yankees should release the contract (with Arods permission) so we can decide.
Arod was not in a position to change the milestone, so good faith in this context only applies to the Yankees who are the ones changing what was agreed.
Arod was punished for his PED use, a punishment that saved the Yankes 24 million. His performance in 2015 has been wildly popular with Yankees fans, and the Yankees also have his 3000 hits and 2000 RBI milestones to market. If they could not market Arods 660, then Hal should go back to running Budget Hotels
NoAZPhilsPhan
The separate marketing contract has nothing to do with 3000 or 2000 so those are non-events in regards to the contract. You are correct that we don’t know for sure regarding the quotes but considering it was broadcast on YES, it would be rather embarrassing if it’s not.
David Coonce
All kinds of contractual language gets voided or isn’t binding. The language in Josh Hamilton’s contract, obviously, was superseded by the JDA. I’m assuming this language (if this is as it’s rread) isn’t legally binding either. Remember when Curt Schilling had language in his contract that read he would get a bonus if the D-Backs made the playoffs? That wasn’t legally binding, although it was in his contract. The CBA trumps contractual language.
NoAZPhilsPhan
All kinds of language is also upheld as well. We will know when an arbitrator decides.
Sleeper
The problem is, none of us have our hands on a transcript of the actual deal, so knowing the fine points such as that is impossible, and all we can do is speculate. That’s why I take issue with people simply asserting one way or the other in this case, because there’s fine contract details that will determine how this unfolds, it’s easy to just say “pay the guy and get it over with, you owe it to him” when it’s not our money. All that I felt should be noted is that the wording we were given in this post seems to plausibly suggest a loophole to give NY at least some point to stand by.
pft53
” and in accordance with the intent of the parties.”
The agreement was made to bridge the gap between what Arod was asking and what the Yankees were willing to guarantee (300 vs 275). Since the CBA did not allow bonuses based on performance they came up with the marketing agreement, which had to be approved by MLB and MLBPA.
Its clear that the Yankees decision to not market the milestone is not in good faith or in accordance with the intent of Arods side. There is a reason 660 was called out in the agreement as the first milestone, since Arod would not have agreed to anything later for the first one which would be more difficult to achieve.
Yankees should consider the impact of not honoring their agreements on signing other players, and the morale of a team trying to focus on winning in 2015. Maybe Arod should hint he may not to hit another HR until the pay up, then they can pay out 60 million plus 30 million tax for nothing.
But for whatever reason they may think the arbitration process favors them and are going this route. MLBPA has been so weak over the last few years that they (MLB and Yankees) don’t fear MLBPA reaction. This suggests the MLBPA like so many unions in the private sector has been co-opted by the industry. Marvin Miller rolling in his grave, which explains why the players are losing ground in pay as a percentage of revenue.
NoAZPhilsPhan
Good faith is an abstract and comprehensive term that encompasses a sincere belief or motive without any malice or the desire to defraud others. If the contract does also imply that good faith is required by both parties then the case that A-Rod did defraud.
Sleeper
Well, a lot to take in from this response. First note that I never said I agree or disagree with their stance, but that bit of language seems to leave a bit of a loop hole that’s going to make it much less clear cut. Could it be determined that it wasn’t done in good faith? Sure, quite possible. All that I’m saying is that there COULD be a foot to stand on here. Now, as far as future signings, I really don’t think this is going to make an impact on whether or not a player signs in NY, that seems to be a bit of a stretch honestly. NY is a pretty storied franchise that treats it’s players rather well, and have honored commitments continuously. The thing here is that they feel they shouldn’t be committed to this due to the legitimacy/marketability(or lack-thereof) of the mile stone. There won’t be any deals of this nature going forward because they’re no longer allowed to be made in such a way, so unless the MLBPA/MLB in general re-allows such marketing contracts, and another multi-time steroid abusing superstar signs with NY, questioning their willingness to honor their commitments is off base.
Douglas Rau
I think this gets sorted out in the off-season. No reason to distract the team or worry about it now. The Yankees are playing so well, as of late: winners of their last 5 series, 10 out of their last 12.
Piro
He should ‘ve said he’s donating the money.
NoAZPhilsPhan
That gesture would ring hollow for many as Alex is an expert at appearing contrite. Consider how remorseful he appeared to be in his 2009 interview. Also take into consideration the fact that he spent several years representing the Taylor Hooton Foundation. Taylor was the high school athlete who died due to steroids. Alex went around the country speaking to young athletes about the evils of PED’s. He encouraged them to sign statements swearing they would never use and he would sign a statement right along with them. The whole time he was doing that he was a client of Tony Bosch. He is such an expert at deception that he should consider a job as an illusionist when his playing days are done.
Piro
I can’t believe the Yankees are thinking about having a legal dispute in the middle of the season with one of their most productive players. That says a lot about “The Boss'” successors i guess winning is not the main goal..
BigGameJames
I agree 100%. Doesn’t seem very professional to have a big dispute in front of the NY media, where you know dirty laundry will be aired. This team has made upwards of $400M in yearly revenue this decade. Getting cheap with these “milestones”, selling off a huge % of YES, not willing to outbid Bos for Moncada, and stagnating payroll for the last decade despite doubling revenue over the same period, the Steinbrenner boys clearly seem more interested in revenue than wins.
jb226 2
The worst part of all of this to me is how many bad contracts are being approved. Hamilton with a probably forbidden contract clause that only gets raised when it becomes important, A-Rod with an ambiguous clause that is basically just a (forbidden) performance clause dressed up to disguise it. I have an idea: How about instead of allowing clauses like “it must be in accordance with the intent of the parties” that is almost definitely going to an arbitrator, how about you make them write the intent of the parties down?
Sometimes there are legitimate disputes about details of an agreement, but that shouldn’t mean we don’t even try to articulate the agreement before everybody signs off that it’s great.
Maggiemay
What’s the legal term for, ‘nice try’?
Jimmy Sherman
This is going to be fun to watch. If they thought A-Rod was going to be a problem before this, wait until the PA sinks it’s teeth into it.
dvmin98
Come to an agreement with ARod and give it to his favorite charity instead. That way you pay it, but not directly to him.
MB923
Been said several times already, but how bout they come to an agreement and give every $6 million more he makes to a charity
Twinsfan79
If the only thing in the contract that says Yankees are off the hook is the “if the team feels the milestone is not marketable” line, I think they end up paying. As they should. Unless the language clearly states otherwise.
David Coonce
So you’re basically accusing him of using PEDs with absolutely no proof.
frogbogg
Didn’t MLB?
David Coonce
That is true. He made a list but never tested positive in the Biogenesis case. I was referring more to the notion that somehow he’s cheating the system currently, as well.
NoAZPhilsPhan
I would say there was plenty of proof considering even the late Mr. Weiner advised every Biogenesis “client” to take a suspension.
BigGameJames
I’m saying I’m suspicious, I was pre ’09 too.
David Coonce
You know he gets tested, right? It’s baseless accusation.
BigGameJames
I based it on the fact that he’s been caught using steroids more than once. Do I need more than that?
David Coonce
Tested positive one time in 2003, before current JDA. Never tested positive since then.
BigGameJames
Alex has an OPS+ above 150 as a 39 year old, he never even needed the juice. He would have been better off not using the stuff if he can naturally produce at age 39 similar to his early twenties in Seattle. Great job to Alex for bouncing back so well at such a high age and without the PED’s. If Alex doesn’t get popped this year with all the tests he’ll take than his DR.’s are likely very talented.
Mike C.
Teams who give out huge risky contracts need to shut up and just pay. Nobody put a gun to the Yankees heads and forced them to include bonus clauses. Nor did anyone tell Artie Moreno to give Hamilton that deal. You can’t cry after the fact.
The absurd nature of the A-Rod deal is the fact that someone making $25 Million a year should even have bonuses in the contract. Yankees should be held to pay the bonus and hopefully other teams will learn from their error.
Mikenmn
I’m going to disagree with a lot of people here. First, I think the idea that somehow the Yankees and A-Rod belong to each other and so both need to be punished isn’t reasonable–look at the number of teams having success with users in their line-ups. And the number who failed tests getting new deals. Let’s not be holier than thou. Secondly, on a personal level, if I were the Yankees, I would just pay the man his money and hold my nose while doing it. It’s not worth yet another round in the mud with this guy. But, I can understand exactly why they would not do it, and fight it out. If there’s a real legal issue here, language in the contract that gives rise to the possibility that they shouldn’t be paying, then you have contest it. These contracts have value in the way they define the two parties rights, and just as MLBPA would have every reason to contest the Yankees not paying, the Yankees would have every reason to try enforce what they see as exculpatory language. This is exactly the type of argument that is likely to have to be resolved in the next CBA.
GavinVolaire
George Steinbrenner would never have allowed the Yankees to make Arod a sympathetic figure.
Lance
45 years ago in the book, “BALL FOUR”, Jim Bouton wrote about the use of “greenies” in MLB. PED’s are hardly something new. Bouton said that if a pitcher could take a pill that would guarantee 20 wins but take ten years off his life, most would take it. Athletes are always looking at ways to make them excel. Mays said he didn’t know what they were pumping into him but he would get exhausted during the course of a season and looked for help. PEDS didn’t make Barry Bonds or ARod better players than Ricky Ledee or Mike Stanley. BB & AR were ALREADY better players. PEDS just helped them stay on the field longer and helped them thru the various ailments players get thru the course of 180+ games a year.
EB
A Rod is a liar and a cheater and thinks the Yankees are acting in bad faith by not marketing his accomplishments? Good luck with that Mr. Rodriguez.
docmilo5
Are the Yankees any less so liars and cheaters? They signed the contract knowing what ARod was all about. They are not guiltless in this.
EB
After they signed the contract A Rod cheated some more and then lied about it. He wasn’t unmarketable when he signed the deal but he is now.
The language of the contract does not say that the Yankees agree to market ARod. It gives them the right to, and they have to use good faith. When A Rod got suspended for a whole year from baseball it made it kind of hard to market anything he does for them in the future.
docmilo5
The Yankees were paying for the guy who used. They new it, ARod new it. Most everyone knew it. They could have let him walk. Had they let him walk this wouldn’t be an issue.
kenninbmore
Does ARod really care about a measly $6M? Really? He’s made enough money to last 50 lifetimes.
Dillinger91
Sometimes its not about the money.
Lance
Since we have not read his contract, we can’t know the wording. Was this $6m based on just reaching 660 HR’s? Marketability is a very fluid type of definition. ARod is and always has been aloof. Here in Texas, he had three of the greatest seasons in MLB history but never really did much with the fans. He stayed away from the media and the only time he went out was to play golf with owner Tom Hicks and his golfing buddies. It’s not about him being a bad guy….but he is just very shy and reserved and is not a baseball drawing card. The Yankees knew who he was and gave him a huge contract even when Alex opted out and no other team in baseball would have even considered this present deal. Now….they’re trying to play silly games.
Rays_Fan_Engima
Good, A-Rod doesn’t deserve it
rob monty
Just give him 6 million worth of steroids! That’s where he’ll spend it anyway
brickman
A franchise that retired the number of TINO MARTINEZ doesn’t consider passing Mays a milestone? What a joke.
pssportscards
Bottom line is that this is on ARod, whether he ends up winning a dispute or not. He and his agent are smart enough to know how contracts work – unless you have EXACT wording then you are taking your chances. They agreed to something that was very vague and open to interpretation, so I have zero sympathy.
Dmcken
The issue at play here which makes it imperative for the Union to file a greivance is that, if not payed, it’s saying a team can have “buyers remorse” on contracts so long as they keep the verbiage general in nature. Utilizing that language to not pay for A-Rod’s(who i am not a fan of) 660th home run is not in “good faith” as the language states. I’d like to see the entire contract, however I’d imagine that one statement regarding how milestone home runs would be determined and acting in good faith was to ensure A-Rod’s last home run of his career or at yankee stadium was not counted as a 6 million milestone, etc–the language was to protect those instances–not to be able to have buyers remorse on an agreed upon incentive structure based on tying and passing historical home run markers—He will get his money and he should—I can’t stand the guy and he could hit another 100 home runs and I will never recognize his spot on the leaderboard–but all of that is irrelevent to the agreed upon incentive structure and the definition of milestone home runs….unless there is verbiage stating that if it was proven A-Rod knowingly used Performance Enhancing Drugs then incentives would be void(which i cannot believe that it appears the Yankees did NOT put that in there) then A-Rod’s wallet will be a little bit fatter at years end.
Christopher Mummery
This is stupid on the yankees part. This will create media drama they don’t this is a large market team. Arod will file the grievence and he most likley win Barry bond is the mlb record holder for HR it’s in the book. Therfore even though both cheated it gives arod the precident needed to win as the record holder is a cheater but recognized by the leaugue. All this beibg said the best solution would be for Arod realizing he has made enough money and knowing he is a cheater approach the yankees and agree to take 3 million of the six in his name amd donate to a charity and have the yankees donate 3 million in their names this diffusing the situation and acctualy helping some people.
ecall
It’s pretty clear that the Yankees owe A-Rod the money and that the team is just grandstanding to look good to the fans.
Felix
I think is more becuse Alex Rodriguez is Hispanic cause the ny Yankees did the same thing to Bernie Williams just look at the history it talks for it self to me is a shame to call my self a ny yankee fan