Home > General > A-Rod should care about Obama’s pay cap

A-Rod should care about Obama’s pay cap

February 5, 2009

yankeeRocky suddenly realized that Obama’s executive pay cap may be a conspiracy orchestrated by the Boston Red Sox.

The plan caps salaries at $500,000 for executives at firms that accept “extraordinary assistance” from the government.

It turns out that the New York Yankees can be included in this category.

From Jim Dwyer’s NY Times article on 1/9/09:
“Now, beyond all sense or sensibility, the New York Yankees have appeared with a request for $370 million in new taxpayer-backed financing for a new baseball stadium that will open in April.
This is more. New. In addition to. On top of the $942 million in previous financing, and $660 million that the city is pitching in to replace parkland sacrificed for the new stadium and transportation improvements.

What is the team going to spend the new $370 million on?

Here are some items on the submission filed with the city’s Industrial Development Agency: $10.5 million for “suite level upgrades,” and $5 million more for “public washroom upgrades,” and $1.1 million to “upgrade suite seats, field seats” and areas where disabled fans will sit. For a better sound and television system in the building, new mounts and screens, a video system and scoreboard, they want $34 million. And $3.9 million for “extensive cabling necessary to accommodate multiple, domestic and international broadcasters.” To enclose the press box and build a dining room for employees, they’re going to spend $3 million. They also plan to spend $137 million for “food and beverage build out.”

Alex Rodriguez tops the MLB salary table at $28 million per year. The average MLB player now earns $3 million per year. If the Yankees were forced to cut A-Rod’s pay to “only” $500k, he would presumably move to a higher-paying team that receives no government funds. Alternatively, if every MLB franchise had a $500k cap, fewer people would choose baseball as a career, and the quality of the game would suffer.

It’s easy to see why, when the government starts setting salary limits, it’s a slippery slope. With unintended consequences.

The Curse of The Bambino may have been broken. But it is being replaced with a new curse.

Advertisements
  1. davidarex
    February 6, 2009 at 10:18 pm

    Hi, Rocky…

    Not to get persnickety, but are the Yankees requesting their additional subsidies from the TARP funds? If not, the proposed pay cap does not apply.

    Obama Lays Out Limits on Executive Pay | WSJ.com

    I was under the impression that the Yankees and Mets were requesting additional assistance from NY taxpayers, not federal TARP funds.

    I’m not sure how you reach the conclusion that “if every MLB franchise had a $500k cap, fewer people would choose baseball as a career.” I’d be willing to bet that of the folks in the minor leagues who earn considerably less, many would be delighted to get called up to the show for a paltry $500k/year. Just guessin’

    Regards,
    DAR

  2. February 7, 2009 at 8:11 am

    Hi DAR:

    Welcome to the site, and thanks for visiting. Even though it’s about 9 degrees outside, Rocky put up a “big tent,” and all manner of man, child and beast are welcome under the big tent. That includes persnickety folk.

    Persnickety is one of Rocky’s favorite words. Along with nincompoop. Don’t apologize for being persnickety. Revel in your semantic prowess — you’ve used a four syllable word, and if you and Rocky were playing scrabble, you would have just taken the lead.

    As to the substance of your comment — Rocky’s example is not literal — it’s figurative. (Ooh! Rocky just pulled back even with you on the Scrabble board.) The main point is slippery slope. New York City accepts funds from the US Government. And the Yankees accept funds from New York City. And all money is fungible. So if it’s ok for the US to arbitrarily set limits on pay for companies that receive handouts, it’s only a matter of time before NY City may arbitrarily set limits on pay on companies that receive handouts. (Rocky knows his poli-economic theory pretty darn well, but he’s only an abecedarian in matters of baseball. ) And since he just scored triple points for using the word abecedarian, it’s Game, Set and Match on the Scrabble board for Rocky! Next challenger…

    Again, thanks for sharing your comment. Rocky hopes that you’ll visit again sometime….

  3. wtf
    February 8, 2009 at 10:38 pm

    Litteral or not Rocky’s example is redicolus and promoting false truths. Rocky’s knowledge of poli-economic theory appears to be that of fearmongering and bending facts to fit his agenda. I find this neither helpful, provocative, or useful in any way.

  4. Doris
    February 8, 2009 at 10:44 pm

    But at least Rocky knows how to use the spell check on his computer. A skill that wtf evidently lacks.

  5. Aardvark99
    February 8, 2009 at 11:01 pm

    To wtf:
    What is a false truth? Is it like a jumbo shrimp?

  6. February 9, 2009 at 8:38 am

    “And all money is fungible. So if it’s ok for the US to arbitrarily set limits on pay for companies that receive handouts, it’s only a matter of time before NY City may arbitrarily set limits on pay on companies that receive handouts.”

    While all money may indeed be fungible, federal, state and local policy isn’t. A-Rod needn’t worry about salary caps; at least not at this juncture.

    As I’ve said in other forums, when individuals receive public assistance, it is useful and legitimate for that assistance to come with preconditions and limits regarding earnings. I see no valid reason why CEOs (or ball tossers) should not be held to comparable preconditions. If they don’t like the caps, don’t ask for public funds.

    Regards,
    DAR

  1. No trackbacks yet.
Comments are closed.
%d bloggers like this: