
We all know that
Alex Rodriguez is aiming his sights at $30 million next year. This is an indisputable fact and, to be totally honest, a reasonable thing for someone with Rodriguez's 2007 season numbers -- and a $27 million deal in hand -- to do.
Still, it's hard to see who besides the Yankees will pay that price, and whether the slugger is even worth that much to a ballclub in general is very much in question. Is it possible? Could Alex Rodriguez actually be worth that price?
Dan Rosenheck, writing today in the New York Times, says no:
But is Rodriguez worth $30 million a year? Not close. [Baseball Prospectus' Nate] Silver wrote that teams on the playoff bubble - those expecting to win 83 to 94 games - collect an additional $2.6 million in revenue for every extra game they win, on average. If the industry continues to grow at a healthy rate, those figures should increase by 8 percent a year.
Thus, if he played for a team like the White Sox, Rodriguez could be expected to generate $25 million of revenue in 2008, $24 million in 2009, $17 million in 2010 and 2011, and $16 million in 2012, for a total of a little less than $100 million over five years. He is hoping to sign for about 50 percent more, and perhaps with another year or two tacked on once he is well into his twilight years.
One contention here is that if an extra $2.6 million per year is the average, then a team like the Yankees or Red Sox, or even the Cubs, might benefit from those extra eight or nine wins at a considerably higher rate of return -- say, $3.5 to $4 million. (This is a pure guess, and one that might no have foundation in reality.) If that is the case, A-Rod comes far closer to being worth $30 million or more to his employer, especially if he's playing in pinstripes.
(Thanks to PMK for the heads up.)