Scott Boras wanted a 350 million dollar deal for Alex Rodriguez and for him to leave the Yankees. Rodriguez thought otherwise as he desired to stay in pin stripes. Scott Boras, considered one of the most shrewd agents in all of baseball, overestimated the market and was putting A-rod's future in jeopardy. Rodriguez, who normally contracts with Boras to negotiate his deals, sought more professional advice for the highly complex baseball market. Alex Rodriguez contacted Warren Buffet, America's most successful investor. With his aid, and help from two Goldman Sach's executives, A-rod took Boras out of the picture and took matters into his own hand. Ro
driguez ultimately agreed to a 10 year deal worth 275 million dollars which is currently in the process of being finalized (overview).This represents a bold move for Alex Rodriguez, who bypassed his notorious agent and decided to figure things out himself. This is probably the first time the professional advice of a sports agent has been ignored for professionals in the finance industry. Warren Buffet and Goldman Sachs don't come to mind when you think about negotiating deals for ball players, but A-rod decided to set a new precedent.
While A-rod's decision worked out for him, I dont think this is a new trend you will see anytime soon. This was a very isolated incident that probably did require professional financial intervention. Boras misread the market by overestimating the amount of Arod's potential contract. He also was going to prevent him from staying with the Yankees, which is where A rod truly wanted to be. Boras miscalculation of the market is exactly why he is hated so much by managers in the industry. Major League Baseball teams actually refuse to work with Boras because the amount of money he demands for his clients becomes such a large financial liability for the team. Only a few teams in each league can afford the kind of money Boras demands for his clients. I think A rod made the right move here and I commend him for being willing to negotiate on his own.
1 comment:
Im a yankee fan, who just like every other yankee fan was shocked when a-rod opted out of his contract. On numerous occassions he stated how much he loved new york and how he wants to finish a yankee. When he opted out during game 4 of the world series, i was just in awe. Boras and A-rod never gave the yankees an opportunity to negotiate a contract extension. Im glad a-rod on his own power came back to the yanks and said i want to be with you and only you. That just shows you Boras really has no clue what his clients want, hes just out to get the highest price. Thats what a agent should do, but hes supposed to take into account, whats best for his client.
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