The Yankees still owe Alex Rodriguez tons of money. But, lawyers say, they might be able to get out of paying at least some of it.
A-Rod is set to make $61 million over the next three years. The Yankees don't have much choice other than to pay that, unless doctors declare the 39-year-old slugger physically unable to play baseball. In that case, insurance would likely pick up most of that cost.
But the Yankees are reportedly looking for ways out of a marketing deal they signed with Rodriguez in 2007, separate from the 10-year, $275-million pact both sides accepted that same season.
In the marketing arrangement, Rodriguez, who is fifth all-time with 654 career home runs, is set to earn $6 million each time he hits a particular milestone homer.
For example, he's set to earn that much if he ties Willie Mays' mark of 660 career home runs. Rodriguez would also earn $6 million if he reached each of the following plateaus: homer Nos. 714 (Hank Arron), 755 (Babe Ruth) and 762 (Barry Bonds). He'd also receive one final $6 million payment if he passes Bonds' all-time best mark.
On Tuesday, New Jersey Advanced Media spoke with several lawyers who haven't seen the marketing contract between Rodriguez and the Yankees, but still offered their opinions on how the Yankees might be able to wiggle their way out of it. A spokesman for Rodriguez declined comment on the situation. A call to the MLB Players Association wasn't immediately returned.
Here are potential legal arguments, lawyers say, the Yankees could use to contest the contract:
1. Did A-Rod breach a morality clause?
Many contracts have moral turpitude clauses, according to Charles Sullivan, a Seton Hall University law professor. Basically, these clauses hold the parties to a standard of conduct. The Yankees could make the cause, Sullivan said, that Rodriguez's performance-enhancing drug use violated that clause, since it violated the league's Joint Drug Agreement. "It should be fairly easy to get out of the contract if here's a morals clause," Sullivan said. "That's why we have them in there. To stop things like this."
if that would fly for the HR bonus why wouoldn't they try to use it to void the entire contract? I'd be surprised if they haven't looked into it hard and been told to forget it.
2. Did Rodriguez commit fraud?
Rodriguez signed these deals with the Yankees in 2007. That was before Rodriguez publicly admitted in 2009 to using steroids. It was also before he reportedly told federal investigators in January 2014 that he used them again, just before he served his yearlong ban from baseball. According to Edison-based lawyer Kenneth Vercammen, it's possible the Yankees could argue that Rodriguez committed fraud by not telling them about his PED use. "You can defend fighting the contract based on a fraud argument sometimes," Vercammen said. "If someone enters into a contract and doesn't disclose something, they could say there was a fraud."
Again, I'd be VERY surprised if they haven't looked into it hard as a way of voiding the entire contract and been told to forget it.
3. Are the milestones even marketable anymore?
Attorney Anthony R. Caruso, of Lyndhurst-based Scarinci-Hollenbeck, said the Yankees could argue that Rodriguez's reputation as a steroid cheat and a liar has killed the chances the Yankees -- or anybody not named Alex Emmanuel Rodriguez -- make any money off the contract. Vercammen agreed, saying the most people probably think the fact Rodriguez could pass several all-time greats on the career home run list is "worthless." "People don't like cheaters and people don't buy paraphernalia for people they think are cheaters," Vercammen said. "People root against cheaters. That's where the Yankees could come from. They could say, 'We can't sell this product.' If you're not at Yankee Stadium, are you going to cheer for him? Pepsi isn't going to sponsor that. It would be interesting to see what endorsements he even still has."
4. Is the deal too one-sided now?
Sure, Rodriguez would make $6 million for reaching certain marks. But what would the Yankees get out of it? Clayton P. Gillette, a New York University law school professor, said the Yankees could argue that it was Rodriguez's own actions that ruined their side of the contract's value. That's a big no-no, Gillette said. "One party to the contract can't simply frustrate the other party's purpose for entering into the contract," Gillette said. That might give the Yankees ground to not enforce the contract.
I readily concede an attorney and a law professor are more knowledgeable here, but barring some activity specifically forbidden in a contract (think Aaron Boone and playing basketball) when was the last time a MLB contract was voided because the player did not give the value the team thought it was paying for.
Brendan Kuty may be reached at bkuty@njadvancemedia.com" title="mailto:bkuty@njadvancemedia.com\">bkuty@njadvancemedia.com\"" title="mailto:bkuty@njadvancemedia.com\">bkuty@njadvancemedia.com\"">bkuty@njadvancemedia.com">bkuty@njadvanc...>bkuty@njadvanc.... Follow him on Twitter @BrendanKutyNJ. Find NJ.com Yankees on Facebook.
