From USA Today
http://www.usatoday.com/sports/baseball/al/yankees/2004-03-23-salary-record_x.htm?csp=14
Baseball's future in hock
By Hal Bodley, USA TODAY
The New York Yankees' dizzying spending spree on players shows no signs of stopping after this season.
Baseball's richest franchise, which will have a payroll approaching a record $200 million this year, has guaranteed players $566.7 million from 2005-10.
USA TODAY's exclusive survey of all guaranteed contracts for that six-year period shows New York's obligations are more than three times the next highest team. The Philadelphia Phillies, who are moving into a new stadium next month, have committed $181 million.
Alex Rodriguez, Derek Jeter, Jason Giambi and Mike Mussina, to name a few, are on the Yankees' books for years to come. Jeter and A-Rod are owed a combined $50.1 million in 2010.
Overall, the 30 teams have guaranteed players $2.8 billion for the six years, and that, along with other debt, has Commissioner Bud Selig uneasy.
"Many people, including the commissioner, are very concerned about the level of debt," he said Monday. "We now have rules in our labor agreement that deal with that."
Selig believes "teams have a much more sensitive recognition of their debt and what they have to do about it."
In 2001, the last time USA TODAY did this survey, the 30 teams had guaranteed 272 players $3.7 billion for 10 years beginning in 2002.
Teams — even those who cannot afford it — are eager to sign their premier players to long-term deals rather than risk losing them to free agency. At best, long-term deals are a gamble. In many instances players are not physically able to complete the term of their contracts.
Adding to the problem is insurance on guaranteed contracts becoming more difficult to obtain. The few insurance companies willing to get involved seldom agree to more than three years of the contract and insure the player for no more than 70% of the value.
Even financially conservative franchises are getting in the fray. Last week the Oakland Athletics signed third baseman Eric Chavez to a six-year, $66 million extension.
Others are being more frugal.
The Montreal Expos, owned by the other 29 franchises and searching for a new, permanent home, have committed just $307,500 next year with nothing beyond.
Even though the Arizona Diamondbacks have deferred numerous contracts, they've guaranteed only $30.8 million with nothing past 2006.
________________
Get used to the Yankees in every World Series.
Thank God football starts in the fall.
cj
http://www.usatoday.com/sports/baseball/al/yankees/2004-03-23-salary-record_x.htm?csp=14
Baseball's future in hock
By Hal Bodley, USA TODAY
The New York Yankees' dizzying spending spree on players shows no signs of stopping after this season.
Baseball's richest franchise, which will have a payroll approaching a record $200 million this year, has guaranteed players $566.7 million from 2005-10.
USA TODAY's exclusive survey of all guaranteed contracts for that six-year period shows New York's obligations are more than three times the next highest team. The Philadelphia Phillies, who are moving into a new stadium next month, have committed $181 million.
Alex Rodriguez, Derek Jeter, Jason Giambi and Mike Mussina, to name a few, are on the Yankees' books for years to come. Jeter and A-Rod are owed a combined $50.1 million in 2010.
Overall, the 30 teams have guaranteed players $2.8 billion for the six years, and that, along with other debt, has Commissioner Bud Selig uneasy.
"Many people, including the commissioner, are very concerned about the level of debt," he said Monday. "We now have rules in our labor agreement that deal with that."
Selig believes "teams have a much more sensitive recognition of their debt and what they have to do about it."
In 2001, the last time USA TODAY did this survey, the 30 teams had guaranteed 272 players $3.7 billion for 10 years beginning in 2002.
Teams — even those who cannot afford it — are eager to sign their premier players to long-term deals rather than risk losing them to free agency. At best, long-term deals are a gamble. In many instances players are not physically able to complete the term of their contracts.
Adding to the problem is insurance on guaranteed contracts becoming more difficult to obtain. The few insurance companies willing to get involved seldom agree to more than three years of the contract and insure the player for no more than 70% of the value.
Even financially conservative franchises are getting in the fray. Last week the Oakland Athletics signed third baseman Eric Chavez to a six-year, $66 million extension.
Others are being more frugal.
The Montreal Expos, owned by the other 29 franchises and searching for a new, permanent home, have committed just $307,500 next year with nothing beyond.
Even though the Arizona Diamondbacks have deferred numerous contracts, they've guaranteed only $30.8 million with nothing past 2006.
________________
Get used to the Yankees in every World Series.
Thank God football starts in the fall.
cj
