Love Him? or Leave Him?
As we all know by now, thanks to careful planning by Scott Boras, Alex Rodriguez has opted out of his contract in New York. That means he’s ready to entertain offers from the highest bidder, and you know the price tag won’t be cheap. Among all the talk about the potential suitors that may enter the negotiations for A-Rod’s services, an interesting discussion arose on Mike and Mike the other morning. The discussion involved wondering if the timing of A-Rod’s contract announcement would hurt his brand value and whether or not he was one of the most universally hated athletes in all of sports. Their general consensus was that yes, he has reached that hated status reserved for the likes of Barry Bonds.
I found the topic an interesting one because it touched on an issue I brought up in regards to Michael Vick, especially as it pertains to his contract total. The guys were posing the question of why he would be reviled when he hasn’t really done much to draw the ire of the fans. Especially in comparison to some of the “troubled” athletes we, as a collective fan base, have managed to embrace, blemishes and all. One of the talking points Mike and Mike kept going back to was the size of A-Rod’s contract as a factor in the dislike that surrounds him. Their contention was that the average fan basically just thinks he is a greedy SOB that should be happy with the money the Yanks are shelling out to him and that collecting that pay check means he should somehow do more than contribute 50+ homers and 150+ RBI’s. And as the guys were debating the validity of this emotion from the fans, I started thinking more about the supply and demand concept that really drives every contract negotiation in every sport. I can understand how, at face value, the general public cannot understand someone spurning a $27 mil/year contract in favor of perhaps making more money somewhere else. It’s ludicrous, right? Most of us working schmucks would do what he does for $100K per season. So what’s wrong with a person who can’t just be grateful for what they’re receiving? Makes me hate them too!
But one of the Mikes, and I believe it was Golic, brought up a great point that really hits at the heart of the economic concepts in play here. They said, imagine if you make $40K a year on your job. And in casual conversation you come to find out that a competitor in your industry is willing to offer you $48K a year to come and do the exact same job you’re doing currently. Sure, there would be certain factors that would likely play into your thought process, such as are there intangibles at your current place of employment that are worth more than money to you. But for most of us, the chance to earn that extra pay check is worth the risks of leaving the familiar. And would any of us feel guilty for taking the extra cash? No! Because we all think the services we provide our employers are worth every penny we’re receiving. Supply and demand. What we’re supplying our employers with is met with “x” amount of demand and there’s a market rate that translates into a paycheck associated with that demand. It’s the same thing for A-Rod. His agent, while being many things, is not completely business-inept. Scott Boras is quite savvy if you ask me. He would not advise his client to opt out of the size of contract he had with the Yankees if Boras did not feel reasonably certain that there would be a high level of interest from other teams at contract terms more favorable than A-Rod’s current terms. Meaning Boras knew that other employers in a highly competitive industry might be willing to offer this employee more money for equal services. We, the average working men, cannot grasp this concept because we would never turn down the possibility to earn even $1 mil, let alone multiple millions, hence the reason we loathe A-Rod. But the concept is the same.
The only other thing working against A-Rod that I see is that he generally just doesn’t really have a personality. Derek Jeter is Derek Jeter. He’s lively, charming, enjoys going out, etc. He is the face of the franchise in NY. Other beloved athletes have noticeable personalities. Michael Jordan was known for his obsession with winning and competition. He had that great smile. The list goes on. A-Rod? He seems flat. Blah. Lifeless. Boring, even. So couple that with the fact that he makes a gazillion dollars, and the end result is that the American population basically hates him.
Now, please don’t take this to be my defense of Alex Rodriguez. Personally, I know his stats but saw first hand in Texas how it’s not enough to elevate a team onto his shoulders. And the truly great athletes are able to do that. And in turn, I don’t begrudge them their golden contracts. I just think if people really took a second to think about his situation in their own terms, they’d see that they may not make a decision all that different from the one A-Rod made. And truly, when it comes down to it, if he lands on your team? You’ll be cheering him on.




Sorry, but it’s just not valid to compare a guy weighing $48k/year vs. $40k/year. That extra $8000 (which will probably be $6000 after taxes) isn’t going to do a lot to change his lifestyle…maybe he can put a few more bucks into savings for the kids’ college fund, or eat out a few more times, or buy that big plasma screen he’s been eyeing. The difference between what Rodriguez makes now and what Boras is trying to get him will amount to something like $30 million over 10 years. That’s more than the $40k/year shmuck will make in his entire lifetime. That’s not put-a-few-extra-bucks-away money, that’s start-a-foundation money. In other words, Rodriguez will go from stratospherically rich to galactically rich. Of course the average fan is going to resent this. If the average fan is extremely lucky, he might get that $8000 raise and be able to take the family out to a ballgame to watch the billionaires “earn” their salaries.
That is true that the percentage of income going from $40K to $48K a year is different than when you’re talking about multi-million dollar contracts. But That was kind of my whole point. The reason the average fan hates A-Rod is because they do not perceive that there is any service he’s providing that would merit a raise from $27 mil to $32 mil or what have you, and therefore, they’re paying higher ticket prices without getting any net tangible benefit. My contention is that most Americans would not begrudge their fellow working man the extra $8K per year because when you net that out at the margin, you’re talking about adding “luxuries” like the plasma TV, etc. For A-Rod, the additional money is honestly chump change at that point because he’s already making so much. But because we’re not in that income bracket we can’t understand why someone would opt out of a contract of his current size to add what just doesn’t seem to be a dollar figure that would matter to him. Hence the reason we hate him! He makes all that money, which he then rejects as insufficient and we can’t honestly see that he’s worth any more than what he’s making! Just remember, this post was not a defense of A-Rod. I’m like my fellow Americans…I hate him! Your Sox should be thanking the players union that told him he couldn’t accept your contract offer!