Skip to content

Yankees could receive insurance funds if Alex Rodriguez can’t play

Dec 4, 2012, 2:21 PM EDT

Alex Rodriguez AP

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.

Latest Posts
  1. Angels could trade Howie Kendrick or David Freese for pitching

    Oct 31, 2014, 11:55 PM EDT

    Howie Kendrick Howie Kendrick

    The Angels are expected to address their pitching needs by making Howie Kendrick or David Freese available in a trade.

  2. Blue Jays sign Jeff Francis to a minor league deal

    Oct 31, 2014, 11:15 PM EDT

    Jeff Francis Jeff Francis

    Veteran lefty Jeff Francis has agreed to a minor league deal with an invitation to spring training with the Blue Jays.

  3. Blue Jays exercise $6.7 million option on J.A. Happ

    Oct 31, 2014, 10:25 PM EDT

    J.A. Happ J.A. Happ

    The Blue Jays will exercise a $6.7 million club option on J.A. Happ for the 2015 season.

  4. Byron Buxton underwent surgery to repair dislocated finger

    Oct 31, 2014, 9:55 PM EDT

    Byron Buxton Byron Buxton

    Twins prospect Byron Buxton had surgery on Thursday to repair a dislocated middle finger on his left hand.

  5. Orioles decline their half of the 2015 mutual option for Nick Markakis

    Oct 31, 2014, 9:05 PM EDT

    Nick Markakis Nick Markakis

    Nick Markakis is a free agent after the Orioles declined their half of a $17.5 million mutual option for the 2015 season.

  6. Pablo Sandoval: “I want to wear [a Giants jersey] for the rest of my career.”

    Oct 31, 2014, 8:25 PM EDT

    Pablo Sandoval Pablo Sandoval

    Pablo Sandoval says he wants to retire a Giant. He’s a free agent and is expected to sign a lengthy, expensive contract.

  7. Dodgers decline $14 million option on Chad Billingsley’s contract

    Oct 31, 2014, 7:35 PM EDT

    Chad Billingsley Chad Billingsley

    Chad Billingsley is now a free agent after the Dodgers declined their club option for the 2015 season.

  8. Colby Lewis to test free agency after inability to reach deal with Rangers

    Oct 31, 2014, 6:55 PM EDT

    Colby Lewis Colby Lewis

    Colby Lewis will test free agency after he and the Rangers couldn’t strike a deal.

  9. Jockey gave away “Mad Bum” underwear to Giants fans

    Oct 31, 2014, 6:05 PM EDT

    Madison Bumgarner Madison Bumgarner

    Madison Bumgarner’s post-season performance prompted Jockey to make underwear with “Mad Bum” on the backside, a special gift to Giants fans at Friday’s World Series parade in San Francisco.

  10. Rockies exercise option on 42-year-old LaTroy Hawkins

    Oct 31, 2014, 5:17 PM EDT

    LaTroy Hawkins Getty Images

    This season Hawkins became one of 16 pitchers in MLB history with 1,000 or more appearances and if healthy he’ll move into the top 10 next season.

  11. Rangers decline Alex Rios’ $13.5 million option

    Oct 31, 2014, 4:26 PM EDT

    Alex Rios AP AP

    Rios is now a free agent coming off a season in which he hit .280 with four homers and a .709 OPS in 131 games.

  12. The Cubs to announce the hiring of Joe Maddon on Monday

    Oct 31, 2014, 4:00 PM EDT

    Joe Maddon Getty Getty Images

    The end of this awkward, orchestrated process is in sight.

  13. Rays exercise $7.5 million option on Ben Zobrist

    Oct 31, 2014, 3:50 PM EDT

    New York Yankees v Tampa Bay Rays Getty Images

    He’ll be eligible for free agency next offseason at age 34.

  14. Blue Jays claim Andy Dirks off waivers from Tigers

    Oct 31, 2014, 2:44 PM EDT

    Andy Dirks AP

    Dirks missed the entire season following back surgery and then a hamstring injury.

  15. The Giants victory parade is going on . . . now!

    Oct 31, 2014, 2:30 PM EDT

    giants logo

    Go O.D. on some hot trolley action.

  16. Eric Chavez joins the Yankees as special assignment scout

    Oct 31, 2014, 2:14 PM EDT

    Toronto Blue Jays v New York Yankees Getty Images

    Chavez played for the Yankees in 2011 and 2012.

  17. HBT Daily: One last look back at the World Series and a look ahead at the Hot Stove Season

    Oct 31, 2014, 2:00 PM EDT

    HBT Daily Logo

    Our last HBT Daily of the year gives a brief taste of the coming winter.

Featured video

Final take away from World Series
Top 10 MLB Player Searches
  1. H. Pence (2113)
  2. Y. Cespedes (2071)
  3. J. Panik (1958)
  4. M. Morse (1947)
  5. M. Moustakas (1915)