So we now know that ARod is out for the entire 2014 season. He will not prevail in court, which means the Yanks have 3 more years (2015-2017) left on the contract at $61 Million. Yes, the Yanks could let this thing play out and bring a 40-year old ARod back for 3 more seasons at 3B at $61M. But I have to assume that they would prefer not to do so. While many pundits have discussed the possibility of the Yanks attempting to terminate ARod’s contract for cause over the past year or so, most have opined that Yanks could not prevail. But now that we know a little bit more about the evidence in the case, I believe the Yanks have a legitimate argument to make to terminate the contract and that the time to do so is right now!
The reasons for this opinion are as follows:
1. Contract Provides a Good Faith Basis to Terminate: Every MLB Player that signs a contract must sign the “Uniform Player’s Contract” that is attached as an exhibit to the collective bargaining agreement. Article 3(a) of the Uniform Player Contract requires the Player to pledge “himself to the American public and to the Club to conform to high standards of personal conduct, fair play and good sportsmanship.” Article 7(b) of that agreement provides a list of the circumstances whereby the Club can terminate the contract. It states:
The Club may terminate this contract upon written notice to the Player… if the Player shall at any time: (1) fail, refuse or neglect to conform his personal conduct to the standards of good citizenship and good sportsmanship…
MLB has very specific rules and penalties for violation of the Joint-Drug Agreement. As a result, any attempt to terminate the contract because of ARod’s use of PED’s or violation of the JDA would most certainly fail. Where a contract provides for express and specific penalties for a violation, a party to the contract cannot unilaterally impose stricter penalties than those agreed upon. However, the CBA does not address some of the other offenses that ARod was alleged to have committed. While we (the public) is not fully aware of those offenses, we know that they were serious enough for an independent Arbitrator to find that a one-year ban was warranted.
From the 60 Minutes piece the other night, we know that these alleged offenses may include: (1) directing an associate to threaten Bosch’s life, (2) having associates offer to pay Bosch $25,000 per month to fly to Colombia and stay there until the whole thing blows over, (3) paying a Biogenesis associate to obtain documents so that MLB would never see the evidence corroborating Bosch’s testimony. I could go on. And there is likely more that has not yet become public. But these offenses are serious. In an ordinary workplace, they would be clear grounds for termination if they could be proven.
Until now, Yanks only had leaks and allegations to support any claims that ARod’s conduct violated Article 7(b). Now they have a final and binding Arbitration Award which obviously found the evidence against ARod credible. With this in hand, Yanks can make a credible and good faith argument that ARod’s actions (described above… plus whatever else is in the award that we don’t know about) constitutes clear evidence that Alex Rodriguez has failed to conform his personal conduct to the standards of good citizenship in violation of Article 7(b). The terms of the contract expressly provide that in such circumstances, the contract can be terminated by the Club.
2. Risk is Low Right Now: If Yanks were to terminate ARod’s contract, the Union would have to defend Arod and challenge the contract termination. Amazingly, we would be right back into an arbitration process over the question of a Club’s ability to terminate a Player’s contract under Article 7(b) given these circumstances. Generally, the risk of arbitration is that there could be a huge back pay award if the team loses. But now, the Yanks are off the hook for any pay to ARod until 2015. Presumably, in about 6 months or so, we would have a decision from an Arbitrator as whether the Yanks had a right to terminate the contract. If Yanks win, they just rid themselves of ARod, all of his baggage, and his $61M. If they lose, they will owe him nothing more than they owed him before they took the action to terminate the contract. They will simply be back in the same situation that they are in now. Thus, this is a no-risk situation. There is only upside, no downside.
3. 2014 Impact: ARod is threatening to show up at Spring Training and create a circus. This would hurt the Yanks focus on the 2014 season and create a sideshow that nobody wants. By terminating his contract before Spring Training, the Yanks then have a legal basis to exclude ARod from Spring Training.
4. 40 Year Old ARod is Useless to Yanks: If the Yanks don’t take this action, they can either eat the entire $61M salary and cut ARod or they can wait it out and hope that ARod comes back and helps the Yanks in 2015-17. It just seems very unlikely that he could do so at 40 to 42 years old. I don’t think Yanks want him back given everything that has occurred. If the Yanks are likely to cut him and eat the $61M anyway, then they have nothing to lose (other than some legal fees) in seeking to terminate the contract instead.
So why not pull the band aid off today? They should make a statement and do this right away!
--Douglas Solomon, BYB Guest Writer
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