The Brewing Dispute over Alex Rodriguez’s Bonuses
When reports emerged in January that the Yankees were intending to contest the home run milestone bonus agreement the team entered with Alex Rodriguez back in 2007, it was unclear whether or not the matter would ever actually come to a head. Following a season-long suspension for performance enhancing drug use, no one knew for sure whether Rodriguez would even make the Yankees’ opening day roster, let alone be given enough playing time to hit the six home runs necessary to tie Willie Mays at 660 (triggering the first of five potential $6 million milestone bonuses under the 2007 agreement).
Rodriguez, of course, did make the team and ended up hitting his 660th career home run on Friday evening in Boston. As a result, attention has once again focused on whether the Yankees have any realistic hope of escaping the milestone bonus agreement.
As I noted back in January, because the bonus agreement has never been released publicly, it is difficult to fully assess the Yankees’ chances of escaping the $6 million payment. However, while there is still much that we don’t know about the contract, recent developments have shed some additional light on the legal arguments the Yankees will likely rely on when attempting to avoiding paying Rodriguez under the agreement.