What Wall Street Thinks of A-Rod: The Price of Hasty Investments
NEW YORK (TheStreet)-- As New York Yankee 3B Alex Rodriguez closes in on the start of his rehab assignment, rumors still swirl about a potential 100-game suspension for the 3-time MVP.
If the speculations about Rodriguez's involvement with an anti-aging clinic are true, the Yankee 3rd baseman could be a part of the biggest suspension in Major League Baseball history, which would force to miss almost two-thirds of the 2013 MLB season. This could leave people like General Manager Brian Cashman, wondering whether A-Rod is really worth his record-breaking 10-year $275 million contract. Considering the average MLB salary is just over $3.4 million, maybe the Pinstripe Powerhouse could have spent its money elsewhere.
I wanted to find out whether people saw A-Rod as a fruitful investment--naturally, I took to Wall Street. I found some part-time sports enthusiasts who were happy to share opinions through the haze of their smoke-breaks. Responses were mixed, although there was a clear trend; A-Rod didn't live up to the stack of cash he is "worth."
"I think A-Rod has been over-hyped as a player for years, and I think he probably deserves being banned if he's found guilty of using performance enhancing drugs," said David Roemer, a Wall St. attorney. If Rodriguez were found guilty, it may be a serious liability to keep him on the team; his iffy reputation could tarnish the Yankee image. This would be a big blow to the organization, and may simply not be a sufficient return on investment.
From a performance perspective, Rodriguez is clearly talented. A 14-time All-Star, 10-time Silver Slugger, 2-time Gold Glove award winner--the accolades speak for themselves. But has his contribution to the Yanks' really been that invaluable? In 2009, the veteran brought the Steinbrenner dynasty to its 27th World Series title. Then again, this was the only World Series title won with A-Rod on the team. In fact, he was notoriously absent in last years' post-season, hitting a woeful .111 in the American League Championship Series.
It's hard to argue that this is worth $27 million per year.