If you have not heard about
Alex Rodriguez's agent demanding a staggering $350 million from the Yankees, you must live under a rock or something. But thats neither here nor there.
There is a lot of commotion surrounding this...ITS $350 MILLION. But lets break it down, because i think this number is justified.
1. A-rod is an offensive power house. At one point last season, he was on pace to hit 158 HRs and like 6,000 RBIs. But seriously, the leverage he adds to a line-up is extremely valuable. We all know he is good for over .300, 40 HR, et cetera. Here is what I think most people don't value. As with any strong hitter, there puts pressure on pitchers just knowing that he is coming up in the line-up. Although many won't admit it, it can be daunting in the the late stages of the game to look into the on-deck circle and know if you don't get the out, A-rod is stepping up with the game on the line...unless its the playoffs.
2. A-rod has the potential to be extremely marketable. I'm not his PR person, so I can't explain why he isn't a bigger personality (like LeBron, Tiger, Greg Oden). however, this is going to change as A-rod breaks the HR record. Look at
Barry Bonds. The guy is selfish, a PR nightmare, disliked by his teammates, painfully mediocre offensively in the past two season...but he puts fans in the seats. The team that has A-rod as he passes Bonds is going to make silly amount of money as long as they stay moderately competitive a .450 winning percentage. If SF profited off of Bonds (which they did), A-rod should be a walk in the park.
3. A-rod is going to pay a lot of taxes. You know what the tax on $30 million a year is? 50% minimum. For arguments sake, lets say he pull a little deferred compensation to try and save some. What is he doing to do, defer $2 million a year for 50 years? It is not hard to see that as long as A-rod ends up in a state with income tax, he is going to get nailed financially. You can figure out how much but it looks to be about 7.1-8.5% a year for most big markets.
http://www.taxadmin.org/FTA/rate/ind_inc.html
The $350 million does not account for endorsements....which he is raking in. On the safe side $100 million until the end of his career. With the economic crunch most state governments are in, he'll be a nice boost (open a new park something).
4. It's Alex Rodriquez.