Chris Isidore of CNNMoney.com analyzes the viability of a $300MM contract for Alex Rodriguez and the likelihood of him still being in the Bronx. Isidore writes:
"A-Rod could produce $48 million per year in revenue and asset appreciation for the Yankees, allowing the team to pay him $34 million in salary, along with a 40 percent luxury tax, and still break even."
Isidore dispels the notion that the YES Network is actually doing better with A-Rod in pinstripes by pointing out a significant decline in viewership since his acquisition in ’04, and that YES fetches most of its profits from fees assessed to cable/satellite providers. In a most probable scenario, if A-Rod signs elsewhere, YES will lose "only about a 3 percent drop in overall revenue for YES," writes Isidore.
While this isn’t what I refer to as a "substantial rumor," Isidore points out how the one team that would see the greatest economic benefit from signing Rodriguez is the team that resides in his hometown of Miami: The Florida Marlins. Isidore notes:
"…for deep-pocketed successful teams like the Yankees, Mets, Cubs, Red Sox or Angels, there’s a marginal economic benefit from bringing him in, even as fabulous a player as he is. But look at the upside for the Marlins, not just in ticket revenue but also the structure of a new stadium deal.’"
Posted By Nat Boyle
