Dec 4, 2012, 2:21 PM EST
So, the best thing A-Rod can do for the Yankees now is not play?
CBSSports.com’s Jon Heyman reports that the Yankees have insurance on Alex Rodriguez‘s contract that would cover 75-80 percent of his salary if he proves unable to play due to injuries.
Rodriguez is currently expected to miss 4-6 months following hip surgery in January, potentially leaving him sidelined until June or July.
The way insurance on baseball contracts typically works is that it doesn’t kick in unless a player misses the entire season. Whether that’s the case here is unknown, but it’s a pretty good case there won’t be any immediate windfall for the team.
Rodriguez is signed for five more seasons at a total of $114 million. If his body continues to break down, then perhaps the Yankees will recover big portions of his salary in future years. It might also have luxury-tax ramifications. Technically, A-Rod’s salary would still count against the tax even if he were injured and insurance was covering it, but if the Yankees dropped him from the 40-man roster, it no longer would.
That’s what happened with disappointing import Kei Igawa before his contract expired. Since he was no longer on the 40-man, his salary didn’t figure in for tax purposes. However, the Yankees also couldn’t pay someone to take him — which would have had luxury tax ramifications — and they essentially held him hostage in the minors until his contract was up.
- Merry Christmas from HBT! 0
- THE YEAR IN REVIEW: HBT’s most commented-upon stories of the year 80
- The Yankees are treating Alex Rodriguez differently than they treated Derek Jeter. So what? 34
- Braves sign setup man Jason Grilli to two-year contract 13
- My Imaginary Hall of Fame Ballot 119
- Phil Hughes signs a three-year extension with the Twins 27
- The Padres have talked to the Phillies about Cole Hamels 23
- Why is John Smoltz a shoo-in for the Hall of Fame? 63
- Bud Selig will get a $6 million a year pension. Which is obscene. (145)
- My Imaginary Hall of Fame Ballot (119)
- Today’s specious anti-Mike Piazza-for-the-Hall-Fame argument (93)
- St. Petersburg City Council votes down deal to allow Rays to look for new stadium site (90)
- Phillies GM told Ryan Howard they’d be better off “not with him but without him” (85)