Does the Contract Still Apply?

An interesting wrinkle in the A-Rod opt-out is this: The contract that A-Rod opted out of contained incentive clauses for a bunch of things, among them winning the MVP.  In fact, it was an escalating bonus, that gave him $500,000 for his first (which he got in 2003) $1 million for his second (which he got in 2005) and $1.5 million for each one thereafter.

Yesterday, Alex won his third MVP.  Had he not opted out of his contract, he would have been due $1.5 million from the Yankees.  But, he did opt out.

Here’s the question: Either, Rodriguez was under contract for the season in which he won the MVP, so he should get it, OR, Rodriguez was not under contract when the MVP was awarded, and therefore is not entitled to the bonus money.

Personally, I say stick it to him; no money.  The Yankees are under no obligation to him any more, since he voided the terms of his contract and opted out.  Too bad for him, it cost him a $1.5 million bonus.

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6 responses to “Does the Contract Still Apply?

  1. They should obviously not pay it, but who really cares? He’s getting more on this extension than he would have gotten anywhere else, so he’s still way ahead…

  2. Maybe A-Rod’s contract allowed his incentives to vest at the end of the season (before the contract was voided) subject to the writers designating him the MVP or whatever. So he was owed 1.5 million dollars unless the writers didn’t vote him the MVP. Since they did, the Yanks retroactively owed him the money back in Oct.

  3. There should be no “maybe”. I would assume that a well drafted contract is explicit re such a likely scenario. If it is not – his lawyers should pay him the money.

  4. There should be no “maybe”. I would assume that a well drafted contract is explicit re such a likely scenario. If it is not – his lawyers should pay him the money.

    Of course. We’re all just speculating.

  5. I’m pretty confident (despite not seeing the contract and having no other knowledge) that he is entitled to the money contractually. The opt out probably didn’t void the contract; rather, it was likely akin to notifying someone that you aren’t renewing a lease, which wouldn’t void the contract as to the remaining time in the current term of the lease.

  6. The opt out probably didn’t void the contract; rather, it was likely akin to notifying someone that you aren’t renewing a lease, which wouldn’t void the contract as to the remaining time in the current term of the lease.

    But if the contract is still in effect right now, how can he negotiate with other teams? Baseball prohibits players under contract from negotiating with other teams.

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