The Rangers signed free agent SS Alex Rodriguez to a
ten-year, $252M contract yesterday, the "richest in the
history of U.S. team sports," according to Evan Grant of the
DALLAS MORNING NEWS. The deal is $2M more than Owner Tom
Hicks paid for the Rangers, The Ballpark in Arlington and
270 acres next to the facility in '98. As part of the
deal, Rodriguez can opt out after the seventh year for "any
reason." Hicks stated that although the contract averages
$25.2M per season, the current total value of the deal --
"because of deferred salary that won't begin until after the
10th season -- was closer" to $180M. Even with the
Rodriguez deal and other free agent signings, Hicks expects
the team's final '01 payroll to be about $80M, and said that
"increased revenues and increased attendance make" $80M a
"figure at which the team could make a profit" (DALLAS
MORNING NEWS, 12/12). Hicks: "It's a big contract, it's
very unique. This is the only person in baseball that would
deserve this kind of contract, in our opinion" (CBS
SportsLine, 12/12). Hicks: "This gives us a chance to
leapfrog into an arena people never thought we could get to"
(N.Y. TIMES, 12/12). Hicks said Rodriguez wants "to be
treated like every other player on the team. He never asked
for anything any other player would not receive." He said
Rodriguez will receive a luxury box at both The Ballpark and
Reunion Arena, but that he "paid full price" for the boxes
(N.Y. DAILY NEWS, 12/12). NEWSDAY has a copy of Rodriguez'
deal and published details on www.newsday.com (THE DAILY).
IMMEDIATE TICKET PUSH: The Rangers sold more than 225
mini-ticket plans yesterday in the three hours after the
deal became public. The 225 15- and 28-game packages are
the equivalent of 110 season-ticket packages (FT. WORTH
STAR-TELEGRAM, 12/12). The DALLAS MORNING NEWS has the
Rangers selling the equivalent of 200 full season tickets in
the 5 1/2 hours after the deal was announced (12/12).
PERSONAL TOUCH: Hicks said he sold Rodriguez on being
able to have a personal relationship with the team's owner:
"The owner of the Seattle Mariners is a 72-year-old man who
lives in Japan who he has never met" (STAR-TELEGRAM, 12/12).
CAN HE MAKE A PROFIT? USA TODAY's Mel Antonen cites
research showing that the Rangers have averaged $8M in
losses since '95 (USA TODAY, 12/12). Hicks explained the
deal by saying, "We had the financial flexibility that I
don't think any other team in baseball had. ... The Texas
Rangers will be a profitable team next year. We're in our
budget. ... Part of baseball is how do you manage your
revenues, how do you manage your player costs as a percent
of those revenues and then what's left over to be the bottom
line. Now, clearly, a market the size of Dallas/Fort Worth,
and an organization as well run as ours, has advantages over
certain other markets." Hicks: "We'll actually have higher
revenues, we think our attendance will go up, ... we hope
our no-shows will go down, so people will buy more hot dogs
and Coca-Cola's" (ESPNEWS, 12/11). In Dallas, Richard Alm
reports that Hicks' Southwest Sports Group could bring in
more revenue via a naming rights deal at The Ballpark, which
could be worth $100M or more. Hicks also plans on
developing the more than 270 acres around The Ballpark into
office, retail and entertainment space (DALLAS MORNING NEWS,
12/12). ESPN's Peter Gammons reported that as Hicks "begins
to build the whole complex of buildings and shopping malls
and restaurants [around The Ballpark], this is, to him ...
just a real estate deal" (ESPN, 12/11). In Ft. Worth,
Schnurman & Powell add that another key to the deal is the
estimated ten-year, $500M TV deal the Rangers and Stars have
with Fox Sports (FT. WORTH STAR-TELEGRAM, 12/12). In N.Y.,
Richard Sandomir also notes the lucrative TV deal, as "on
average," the Rangers and Stars receive a combined $41.6M a
year, with the Rangers "getting somewhat more." Southwest
Sports Group President Mike Cramer: "It wouldn't be feasible
for the Rangers to sign a free agent like this without these
TV deals" (N.Y. TIMES, 12/12). On ESPN.com, Jayson Stark
wrote, "This isn't a deal that can be measured in
traditional baseball terms. For Tom Hicks, Alex Rodriguez
is programming. He's WAROD in Arlington, on your cable-TV
dial" (ESPN.com, 12/11). Stark said Rodriguez offers the
opportunity "to greatly increase the value of his franchise,
to change the whole perception of this franchise, locally
and nationally" (ESPNEWS, 12/11). Paul Kagan analyst
Hadrian Shaw: "It sounds crazy, but it's possible they could
be in a position to make money off this." Cramer: "It's a
stretch, but if everything works right, there's the chance
to break even and enhance the value of the team. There is a
way to make a profit" (BLOOMBERG, 12/11). Rangers 1B Rafael
Palmeiro: "If the money wasn't there, I'm sure they wouldn't
offer it" (N.Y. DAILY NEWS, 12/12).
THE STATS ON A-ROD DEAL: Based on his career averages
as a full-time player, Rodriguez will be paid $173,793.10 a
game and $43,003.40 for every at-bat (BLOOMBERG NEWS,
12/12)....Using Forbes' franchise valuations, 12 MLB teams
are worth more than the $252M paid to Rodriguez, while four
NBA teams are worth more than $252M (ESPN.com, 12/11).
THE A-ROD TV MONITOR: Last night's 6:30pm ET edition of
ABC's "World News Tonight" had a 0:34 report on Rodriguez's
deal at 21:17 into the broadcast. Last night's 6:30pm ET
edition of "NBC Nightly News" and the 7:00pm ET edition of
"CBS Evening News" did not report on Rodriguez (THE DAILY).