 Pssst, want a tip? |
It was just reported today by the Wall Street Journal that Warren Buffett advised Alex Rodriguez to approach the New York Yankees and go around agent Scott Boras. I have a different idea of what really went down.
Here’s a little recap…
Buffett and A-Rod became friends several years ago. I guess that Buffett has a thing with athletes, since he is more than acquaintances with LeBron James, another top-tier professional athlete.
Based on Boras’ advice, Rodriguez opted out of the final three seasons of his record $252 million, 10-year contract on Oct. 28. A-Rod’s opt-out caused the Yankees to lose $21.3 million from Texas for the final three seasons that was agreed to at the time of the 2004 trade with the Rangers. I can see how this would have rubbed the Yankees the wrong way.
Not happy with how negotiations went after he opted out, Rodriguez contacted Buffett, and the investor advised him to discuss contract talks with the Yankees without his agent, the Journal said.
With the assistance of the two Goldman executives, Rodriguez and the Yankees negotiated a $275 million, 10-year contract that is in the process of being finalized.
So, the Yankees and A-Rod are right where they wanted to be in the first place…but now the Yankees got screwed by $21M. Is it safe to say that professional athletes are smarter thank they look?
I have a little conspiracy theory…
Disclaimer: This is strictly the opinion of someone who likes to stir the pot. There is no proof of any truth to the statements made, so please don’t take this thing too seriously. Note that this is filed under “satire.”
We all know that Scott Boras is no idiot. Thus, he wouldn’t have let A-Rod negotiate on his own. I truly think that Boras contacted Buffett and the two conspired to get A-rod his $275M contract. Boras knew that Buffett and A-Rod were pals, and it was only a matter of time until A-Rod contacted the financial guru for advice. So Boras cut him off at the pass, and contacted Buffett before A-Rod could and set the whole thing up with Buffett. Of course, Buffett would receive some financial benefit as a result.
And Buffett, being the business man he is, wouldn’t let an opportunity to cash in on a percentage of the contract pass by and agreed to go along with the plot. With proper advice from Boras, Buffett passed the info along to A-Rod, who then took it to the Yankees.
And like magic, a contract was born.
