What is the determining factor in A'Rod's market Value?

Question

This is a follow-up question on the Craig S. question about winning and value. So let's get right to the point, is A'Rod's value based on what he thinks it is, what Boras thinks it is, what the fans think it is, how many rings he has, what other players are paid, or what an employer is willing to pay? If it is anything other than what an employer is willing to pay, than how is that value calculated?

xxxDarylncx: How do you convert that into a value?

cpocolli: I understand the concept of Keynesian Economics, are you saying his value is equal to what someone is willing to pay him?

schufs: In a free market place why would the players sign up for that? It would be subject to a MLB/Players Union agreement and it would never happen, but at least it shows you are thinking.

Craig: I really don't know how it could be stated any better. When responding to questions like this fans have to leave their personal feelings at the door. The answers of many fans on this site are directly proportionate to their personal feelings about the subject matter and they don't look at the issue from a business point of view. No businessman is going to invest $300 million on anything without doing research on anticipated return on investment. When the investment is made on A-Rod that number becomes his market value, and the fact that maybe only four teams can afford him is a none issue. Just because I can't afford to hire Bill Gates doesn't he is not worth what he is making.

Answer 1

I think it's based mainly on the effect that his signing would have on team revenues.

For most teams, signing Alex means increased attendance and merchandising sales, and the possibility for many possible suitors of a playoff/World Series appearance. I'm certainly not a baseball economist, so I can't say what that impact equates to in dollars. I'm sure both an agent like Boras, though, and most major league teams have guys who can actually put a number to that value.

I don't think the fans' input will have any impact, given that their feelings have never stopped the owners from doing what they like. Boras and A-Rod may both have a number in mind, too, but that will likely be balanced out by what the potential employers are willing to spend. I really think it will come down to what impact he has on a team's potential bottom line. This is a business, and most of these owners are smart enough not to be scared away by big numbers.

Answer 2

there are a number of factors that circulate into an appraisal, however the main important is the linked fee of similar residences in the area. while genuine belongings brokers checklist a house on the industry and while appraisers positioned a value on a belongings, they look at comparable sales in the area. If different residences in the area have been advertising for much less, which will harm the appraised fee of a house. An intense style of residences on the industry on your area can harm the linked fee as properly. different issues like age of abode, sq. pictures of abode, enhancements to the valuables, etc. additionally play a extensive place in a house's valuation, yet ultimately it comes all the way down to the guy appraiser's professional judgment. you will possibly have 10 diverse appraisers come by using a house and all 10 of them might arise with diverse values, and it isn't any longer uncommon for various value determinations to variety by utilising tens of 1000's of greenbacks.

Answer 3

There are many things involved: previous contract price ($252 million, now he's shooting for about 300, MAYBE 340 million for 10 years), stats (obviously), accolades (did they announce his MVP award yet?), injury history (he has next nothing, so that's a plus for A-Rod).

Even though the price tag is high, A-Rod has a LOT of leverage (considering what I mentioned above) and if he says "I want X-amount of dollars", he'll probably get a little bit less than that plus some other kind of compensation.

There's also the fear of "well, if we don't sign him for this price, some other team might sign him" and you'll always ask that question "should could woulda".....

Answer 4

here is my answer to a previous question about the value of young stars vs older stars...

I believe that a major overhaul of salary for players is due. It would be very revolutionary and drastically new and different so I don't think it would be a viable option. But the way it would work would seem to make sense in the long run.
Here is how it would work(obviously this would need some work to iron out details).

All contracts would be valid for only one year.
All players and owners would be required to try, in good faith, to re-sign with their original team from the previous season before negotiating with any other team or team's player.
Minimum and maximum limits would be set for player position and years of service.
All contracts(of course, valid for one year only) will be negotiated on the past year and expectations for the next season.
If player and/or team does not want to stay with same team/player, then they are free to choose any team(or any player that has rejected original team's offer).

While this is obviously drastic, it does provide for variation and also for paying players for what they did in the previous year and for the expectations of the coming year.

I know every player having to be re-signed or signed every year would represent major problems for the first few years, but after time, it would work out well.

Current contracts would be allowed to remain in effect.

Let me know what you think. IM me.

WHY wouldn't the players and owners go for it? Other than the obvious 1 year restriction that some may not like being able to go for longer contracts, it is a very good way of being paid what you're worth...

Answer 5

Sabermetrics, Watson.

Compare A'Rod's performance with the rest of MLB's 3B or SS. See how many more runs he produces than the rest at those positions. Then you factor in his stellar defense and see how many more wins he is projected to bring to your team. If you have limited offense at 3B or SS , its very likely A'Rod scores huge in replacement value.

Look at the deal Boras got Damon. Its all based on sabermetrics and some stupidity of course.

Answer 6

he brings the crowd to the ballpark but if he makes 30 million how long until everyone wants 30 million when is enough, enough, when only millionaires can afford a ticket.

Answer 7

Yup

Answer 8

he is the best player in baseball stat wise and his name already carries its self so hes getting whatever contract he wants i hope he signs wit the sox and lowell resigns also so they can be our left side of the infield and get rid of lugo crisp and maybe drew for zito

Answer 9

how many people will come to see him play.. marketing

Answer 10

Simple...........SUPPLY & DEMAND.