NEW YORK &
Alex Rodriguez set another record for baseball's highest contract, finalizing his $275 million, 10-year agreement with the New York Yankees today.
A-Rod set the previous mark with his $252 million, 10-year deal with Texas in December 2000. Traded to the Yankees in 2004, he opted out of that contract Oct. 28, during the final game of the World Series.
Yankees senior vice president Hank Steinbrenner said New York would not negotiate further with Rodriguez because his decision eliminated the $21.3 million subsidy the Yankees were to receive from Texas from 2008-10, a figure negotiated at the time of the trade.
But Rodriguez then approached the Yankees through a managing director at Goldman Sachs and negotiated his new deal in early November without agent Scott Boras. His new deal allows A-Rod to earn $30 million more for achieving historic milestones. He is 18th on the career list with 518 homers, 244 shy of Barry Bonds' record.
Rodriguez won his third AL Most Valuable Player award last month after hitting .314 with 54 homers and 156 RBIs.
A-Rod gets a $10 million signing bonus, of which $2 million is payable upon approval, $1 million each Jan. 15 from 2009-13 and $3 million on Jan. 15, 2014.
Rodriguez receives salaries of $27 million next year, $32 million in 2009 and 2010, $31 million in 2011, $29 million in 2012, $28 million in 2013, $25 million in 2014, $21 million in 2015 and $20 million in each of the final two years.
Rodriguez could receive an additional $6 million each for five milestones that the team designates as historic achievements. They are contemplated to be tying the home-run levels of Willie Mays (660), Babe Ruth (714), Hank Aaron (755) and Bonds, and breaking Bonds' major league record.
Under the deal he opted out of, A-Rod earned $185.45 million over seven years.