Rodriguez Admits, Should Now Give Up Home Run Bonuses
CNBC Sports Business Reporter
New York Yankees slugger Alex Rodriguez admitted to ESPN this afternoon that he used performance-enhancing drugs from 2001 to 2003 while playing with the Texas Rangers. Rodriguez apologized, saying he was "young, stupid and naive."
While the Yankees likely won't be able to void any part of Rodriguez' 10-year, $275 million contract that he signed in Dec. 2007, Rodriguez should now work with the team to give up the $30 million worth of historical bonuses that were put into the contract.
The contract stipulated that Rodriguez could receive an additional $6 million for five historic achievements. Those achievements included tying the career home run records of Willie Mays (660), Babe Ruth (714), Hank Aaron (755), Barry Bonds (762) and breaking Bonds' all-time record.
The reason the Yankees agreed to pay Rodriguez for those milestones was that it was, at the time, seen as very marketable events, which the team could cash in on. There was even more value in this because he was quietly thought of as the "real" home run champion.
But now that we know that Rodriguez hasn't played his entire career clean, the marketing value of those moments is substantially diminished.
Rodriguez currently has 553 home runs. He has averaged 44 a year throughout his career. That would have him breaking all the records during the 2011 season.
Update:Thanks to reader Mark Meltzer for correcting my math on this one. A-Rod will need 4.75 more years to hit the 209 needed to reach Bonds' 762, meaning he'll break it at the end of the 2013 season.
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