Filed under: Business of sports
Corporate governance experts will tell you that executives generally perform best when their interests are aligned with those of their shareholders — a CEO who owns a big chunk of stock tends to be more concerned about the interests of investors. After all, he is one! But does the same idea apply to baseball players?
Alex Rodriguez’s super agent Scott Boras is said to be looking for a 10-year, $300 million deal for the star, and The Wall Street Journal has an idea (subscription required) for a novel way for a team to come up with the cash:
That is an awful lot for any team without the Yankees’ payroll to commit to. But what if, as with a Wall Street firm, a chunk of it came in the form of equity? Such risk-sharing might be attractive for some team owners, though the compensation might need to be deferred to comply with league rules…
It sounds like an interesting idea. It might encourage Rodriguez, who has developed a reputation for being enigmatic at time, to engage in PR activities and really add value to the team, on and off the field.
It’s probably a long shot, but definitely interesting to think about.
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