Particular 2001 2002 2003

Incremental Costs
Base Salary $21,000,000.00 $21,000,000.00 $21,000,000.00
Signing Bonus $2,000,000.00 $2,000,000.00 $2,000,000.00
Amount Deferred -$5,000,000.00 -$4,000,000.00 -$3,000,000.00
Accrued Interest 3% $0.00 $0.00 $0.00
Insurance $2,300,000.00 $2,300,000.00 $2,300,000.00
Shortstop average Salary 16% $3,000,000.00 $3,480,000.00 $4,036,800.00
Total Costs $17,300,000.00 $17,820,000.00 $18,263,200.00
Discount Rate 8% 0.93 0.86 0.79
PV $16,018,518.52 $15,277,777.78 $14,497,916.98
Total PV Costs $134,867,007.40
 2004 2005 2006 2007 2008 2009

$21,000,000.00 $25,000,000.00 $25,000,000.00 $27,000,000.00 $27,000,000.00 $27,000,000.00

$2,000,000.00 $2,000,000.00 $0.00 $0.00 $0.00 $0.00
-$3,000,000.00 -$4,000,000.00 -$4,000,000.00 -$4,000,000.00 -$3,000,000.00 -$3,000,000.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$2,300,000.00 $2,700,000.00 $2,500,000.00 $2,700,000.00 $2,700,000.00 $2,700,000.00
$4,682,688.00 $5,431,918.08 $6,301,024.97 $7,309,188.97 $8,478,659.20 $9,835,244.68
$17,617,312.00 $20,268,081.92 $17,198,975.03 $18,390,811.03 $18,221,340.80 $16,864,755.32
0.74 0.68 0.63 0.58 0.54 0.50
$12,949,250.25 $13,794,115.99 $10,838,271.68 $10,730,861.60 $9,844,423.47 $8,436,576.43
 2010 2011 2012 2013 2014 2015 2016

$27,000,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
-$3,000,000.00 $5,000,000.00 $4,000,000.00 $3,000,000.00 $3,000,000.00 $4,000,000.00 $4,000,000.00
$0.00 $1,719,581.90 $1,375,665.52 $1,031,749.14 $1,031,749.14 $1,375,665.52 $1,375,665.52
$2,700,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$11,408,883.82 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$15,291,116.18 $6,719,581.90 $5,375,665.52 $4,031,749.14 $4,031,749.14 $5,375,665.52 $5,375,665.52
0.46 0.43 0.40 0.37 0.34 0.32 0.29
$7,082,745.44 $2,881,913.50 $2,134,750.74 $1,482,465.79 $1,372,653.51 $1,694,633.96 $1,569,105.52
 2017 2018 2019 2020

$0.00 $0.00 $0.00 $0.00

$0.00 $0.00 $0.00 $0.00
$4,000,000.00 $3,000,000.00 $3,000,000.00 $3,000,000.00
$1,375,665.52 $1,031,749.14 $1,031,749.14 $1,031,749.14
$0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00
$5,375,665.52 $4,031,749.14 $4,031,749.14 $4,031,749.14
0.27 0.25 0.23 0.21
$1,452,875.48 $1,008,941.31 $934,204.91 $865,004.55
Additional Spectators
Total Matches in a
year 162

Regression Output
Variable Unstandardized Standard Error Standardized
(Intercept) −5,908.758 933.409
Average
0.717 0.032 0.705
Attendance (T−1)
Win % 19,931.41 1,928.35 0.296
Is_Baltimore
2,116.90 669.231 0.091
Orioles
Is_Montreal Expos -1,766.88 650.675 −0.076
Is_Oakland
-1,351.08 634.573 −0.058
Athletics

2001 2002 2003

Extra Wins 0.04938271604938 0.04938271604938 0.04938271604938
Extra Payroll $23,000,000.00 $23,000,000.00 $23,000,000.00
Additional
Spectators
(Average) $984.27 $1,689.99 $2,195.99
Additional
Spectators (Total) $159,451.29 $273,777.86 $355,750.01
t p Tolerance VIF
−6.330 < .001
22.46 < .001 0.745 1.343
10.336 < .001 0.891 1.123
3.163 0.002 0.885 1.131
−2.715 0.007 0.936 1.069
−2.129 0.034 0.984 1.016

2004 2005 2006 2007 2008

0.04938271604938 0.04938271604938 0.04938271604938 0.04938271604938 0.04938271604938
$23,000,000.00 $27,000,000.00 $25,000,000.00 $27,000,000.00 $27,000,000.00

$2,558.79 $2,818.92 $3,005.43 $3,139.16 $3,235.05

$414,524.05 $456,665.03 $486,880.12 $508,544.33 $524,077.57

 2009 2010
0.04938271604938 0.04938271604938
$27,000,000.00 $27,000,000.00

$3,303.80 $3,353.09

$535,214.91 $543,200.38
Particular 2001 2002 2003
Incremental Revenue
Primary Income
Stadium Income
Additional spectators 159451.29 273777.86 355750.01
Parking 2.5 $398,628.22 $684,444.65 $889,375.04
Merchandise 1.8 $287,012.32 $492,800.15 $640,350.03
Ticket 18 $2,870,123.18 $4,928,001.51 $6,403,500.26
Additional stadium income $3,555,763.72 $6,105,246.31 $7,933,225.33
Discount Factor 8% $0.93 $0.86 $0.79
PV Stadium Incomes $3,292,373.82 $5,234,264.67 $6,297,650.04
Total PV $59,904,279.92
Secondary Income
Expected income from ALC and WS 1428571.43 1428571.43 1428571.43
Sponsorships $302,239.92 $518,945.94 $674,324.15
Total Revenues $5,286,575.07 $8,052,763.68 $10,036,120.91
Discount Factor 8% $0.93 $0.86 $0.79
PV Stadium Incomes $4,894,976.91 $6,903,946.91 $7,966,996.35
Total PV $74,581,974.29
 2004 2005 2006 2007 2008 2009

414524.05 456665.03 486880.12 508544.33 524077.57 535214.91

$1,036,310.12 $1,141,662.58 $1,217,200.29 $1,271,360.83 $1,310,193.93 $1,338,037.27
$746,143.29 $821,997.06 $876,384.21 $915,379.79 $943,339.63 $963,386.83
$7,461,432.87 $8,219,970.55 $8,763,842.07 $9,153,797.95 $9,433,396.31 $9,633,868.34
$9,243,886.28 $10,183,630.19 $10,857,426.57 $11,340,538.57 $11,686,929.88 $11,935,292.44
$0.74 $0.68 $0.63 $0.58 $0.54 $0.50
$6,794,532.37 $6,930,807.59 $6,842,020.45 $6,617,095.33 $6,314,084.57 $5,970,617.72

1428571.43 1428571.43 1428571.43 1428571.43 1428571.43 1428571.43

$785,730.33 $865,608.57 $922,881.26 $963,945.78 $993,389.04 $1,014,499.86
$11,458,188.04 $12,477,810.18 $13,208,879.25 $13,733,055.78 $14,108,890.35 $14,378,363.73
$0.74 $0.68 $0.63 $0.58 $0.54 $0.50
$8,422,110.27 $8,492,187.95 $8,323,834.51 $8,013,106.14 $7,622,594.45 $7,192,761.61
 2010

543200.38
$1,358,000.94
$977,760.68
$9,777,606.78
$12,113,368.41
$0.46
$5,610,833.36

1428571.43
$1,029,636.31
$14,571,576.15
$0.46
$6,749,459.18
Playoffs
Without Rodriquez With Rodriguez Delta
Not qualify to playoff 71.43% 57.14%
Prob to playoff 28.57% 42.86% 14.29%
Prob going to ALC 14.29% 21.43% 7.14%
Prob to World Series 7.14% 10.71% 3.57%

Earnings
ALC $10,000,000.00
World Series $20,000,000.00

Per Year Expected payoff

Without Rodriguez pay $2,857,142.86
With Rodriguez payoff $4,285,714.29
Incremental Payoff $1,428,571.43

Pre-tax PV of cashflow $9,585,830.57

Assumption: Teams don't make money in any match prior to ALC

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.96597551719
R Square 0.933108699811
Adjusted R Square 0.930719724804
Standard Error 31710209.99644
Observations 30

ANOVA
df SS MS F
Regression 1 3.9275242E+17 3.927524E+17 390.58956129
Residual 28 2.8155048E+16 1.005537E+15
Total 29 4.2090747E+17

Coefficients Standard Error t Stat P-value

Intercept -103298465.745 19394876.5646 -5.326069769 1.137942E-05
Revenue_2000 ($) 3.453850066827 0.17476045411 19.763338819 5.541929E-18

Current Revenue $126,500,000.00

Additional Revenue $14,571,576.15
Value of Franchise $383,941,606.96
 Team
New York Yankee
New York Mets
Atlanta Braves
Los Angeles Dodg
Cleveland Indians
Texas Rangers
Boston Red Sox
Baltimore Orioles
Colorado Rockies
Significance F San Francisco Gia
5.541929E-18 Seattle Mariners
Houston Astros
Detroit Tigers
Chicago Cubs
Lower 95% Upper 95% Lower 95.0% Upper 95.0% Arizona Diamondb
-143027069.41 -63569862.076 -143027069.41 -63569862.076 St. Louis Cardinals
3.0958695045 3.8118306291 3.0958695045 3.8118306291 Chicago White So
Pittsburgh Pirates
Milwaukee Brewe
Anaheim Angels
Cincinnati Reds
San Diego Padres
Toronto Blue Jays
Philadelphia Philli
Tampa Bay Devil
Oakland Athletics
Kansas City Royal
Florida Marlins
Minnesota Twins
Montreal Expos
Value_2000 ($) Revenue_2000 ($)Multiple
$635,000,000.00 $192,400,000.00 3.3
$454,000,000.00 $162,000,000.00 2.8
$407,000,000.00 $145,500,000.00 2.8
$381,000,000.00 $131,300,000.00 2.9
$372,000,000.00 $142,900,000.00 2.6
$342,000,000.00 $126,500,000.00 2.7
$339,000,000.00 $125,700,000.00 2.7
$335,000,000.00 $124,000,000.00 2.7
$334,000,000.00 $119,100,000.00 2.8
$333,000,000.00 $138,800,000.00 2.4
$332,000,000.00 $138,300,000.00 2.4
$318,000,000.00 $122,200,000.00 2.6
$290,000,000.00 $120,800,000.00 2.4
$247,000,000.00 $112,400,000.00 2.2
$245,000,000.00 $109,100,000.00 2.2
$243,000,000.00 $110,500,000.00 2.2
$213,000,000.00 $92,600,000.00 2.3
$211,000,000.00 $70,400,000.00 3
$209,000,000.00 $69,600,000.00 3
$198,000,000.00 $94,400,000.00 2.1
$187,000,000.00 $77,800,000.00 2.4
$176,000,000.00 $84,000,000.00 2.1
$161,000,000.00 $80,300,000.00 2
$158,000,000.00 $79,200,000.00 2
$150,000,000.00 $81,300,000.00 1.8
$149,000,000.00 $74,700,000.00 2
$138,000,000.00 $72,600,000.00 1.9
$128,000,000.00 $67,300,000.00 1.9
$99,000,000.00 $58,000,000.00 1.7
$92,000,000.00 $53,900,000.00 1.7
Quantitative Modeling
Increase in Ticket Price to rea $20.68

Particular 2001 2002 2003

Incremental Revenue
Stadium Income
Additional spectators 159,451.29 273,777.86 355,750.01
Parking $2.50 $398,628.22 $684,444.65 $889,375.04
Merchandise $1.80 $287,012.32 $492,800.15 $640,350.03
Ticket $38.68 $6,168,154.75 $10,590,721.71 $13,761,702.22
Additional stadium income $6,853,795.29 $11,767,966.51 $15,291,427.28
Expected income from ALC and WS $1,428,571.43 $1,428,571.43 $1,428,571.43
Sponsorships $582,572.60 $1,000,277.15 $1,299,771.32
Total Revenues $8,864,939.32 $14,196,815.10 $18,019,770.03
Discount Factor 8% 0.93 0.86 0.79
PV $8,208,277.15 $12,171,480.71 $14,304,674.42
Total PV Revenues $134,867,007.40

Incremental Costs
Base Salary $21,000,000.00 $21,000,000.00 $21,000,000.00
Signing Bonus $2,000,000.00 $2,000,000.00 $2,000,000.00
Amount Deferred -$5,000,000.00 -$4,000,000.00 -$3,000,000.00
Accrued Interest 3%
Insurance $2,300,000.00 $2,300,000.00 $2,300,000.00
Shortstop average Salary 16% $3,000,000.00 $3,480,000.00 $4,036,800.00
Total Costs $17,300,000.00 $17,820,000.00 $18,263,200.00
Discount Rate 8% 0.93 0.86 0.79
PV $16,018,518.52 $15,277,777.78 $14,497,916.98
Total PV Costs $134,867,007.40

Net PV $0.00
 2004 2005 2006 2007 2008 2009

414,524.05 456,665.03 486,880.12 508,544.33 524,077.57 535,214.91

$1,036,310.12 $1,141,662.58 $1,217,200.29 $1,271,360.83 $1,310,193.93 $1,338,037.27
$746,143.29 $821,997.06 $876,384.21 $915,379.79 $943,339.63 $963,386.83
$16,035,295.24 $17,665,461.44 $18,834,290.60 $19,672,341.12 $20,273,223.33 $20,704,055.88
$17,817,748.65 $19,629,121.07 $20,927,875.10 $21,859,081.74 $22,526,756.90 $23,005,479.98
$1,428,571.43 $1,428,571.43 $1,428,571.43 $1,428,571.43 $1,428,571.43 $1,428,571.43
$1,514,508.64 $1,668,475.29 $1,778,869.38 $1,858,021.95 $1,914,774.34 $1,955,465.80
$20,760,828.71 $22,726,167.79 $24,135,315.91 $25,145,675.11 $25,870,102.66 $26,389,517.21
0.74 0.68 0.63 0.58 0.54 0.50
$15,259,828.87 $15,467,047.93 $15,209,343.02 $14,672,259.91 $13,976,811.51 $13,201,328.73

$21,000,000.00 $25,000,000.00 $25,000,000.00 $27,000,000.00 $27,000,000.00 $27,000,000.00

$2,000,000.00 $2,000,000.00
-$3,000,000.00 -$4,000,000.00 -$4,000,000.00 -$4,000,000.00 -$3,000,000.00 -$3,000,000.00

$2,300,000.00 $2,700,000.00 $2,500,000.00 $2,700,000.00 $2,700,000.00 $2,700,000.00

$4,682,688.00 $5,431,918.08 $6,301,024.97 $7,309,188.97 $8,478,659.20 $9,835,244.68
$17,617,312.00 $20,268,081.92 $17,198,975.03 $18,390,811.03 $18,221,340.80 $16,864,755.32
0.74 0.68 0.63 0.58 0.54 0.50
$12,949,250.25 $13,794,115.99 $10,838,271.68 $10,730,861.60 $9,844,423.47 $8,436,576.43
 2010 2011 2012 2013 2014 2015 2016

543,200.38
$1,358,000.94
$977,760.68
$21,012,962.82
$23,348,724.44
$1,428,571.43
$1,984,641.58
$26,761,937.44
0.46
$12,395,955.15

$27,000,000.00

-$3,000,000.00 $5,000,000.00 $4,000,000.00 $3,000,000.00 $3,000,000.00 $4,000,000.00 $4,000,000.00

$1,719,581.90 $1,375,665.52 $1,031,749.14 $1,031,749.14 $1,375,665.52 $1,375,665.52
$2,700,000.00
$11,408,883.82
$15,291,116.18 $6,719,581.90 $5,375,665.52 $4,031,749.14 $4,031,749.14 $5,375,665.52 $5,375,665.52
0.46 0.43 0.40 0.37 0.34 0.32 0.29
$7,082,745.44 $2,881,913.50 $2,134,750.74 $1,482,465.79 $1,372,653.51 $1,694,633.96 $1,569,105.52
 2017 2018 2019 2020

$4,000,000.00 $3,000,000.00 $3,000,000.00 $3,000,000.00

$1,375,665.52 $1,031,749.14 $1,031,749.14 $1,031,749.14

$5,375,665.52 $4,031,749.14 $4,031,749.14 $4,031,749.14

0.27 0.25 0.23 0.21
$1,452,875.48 $1,008,941.31 $934,204.91 $865,004.55
Particular 2001 2002 2003
Incremental Revenue
Stadium Income
Additional spectators 159451.29 273777.86 355750.01
Parking 2.5 $398,628.22 $684,444.65 $889,375.04
Merchandise 1.8 $287,012.32 $492,800.15 $640,350.03
Ticket 18 $2,870,123.18 $4,928,001.51 $6,403,500.26
Additional stadium income $3,555,763.72 $6,105,246.31 $7,933,225.33
Expected income from ALC and WS $1,428,571.43 $1,428,571.43 $1,428,571.43
Sponsorships $302,239.92 $518,945.94 $674,324.15
Total Revenues $5,286,575.07 $8,052,763.68 $10,036,120.91
Discount Factor 8% 0.93 0.86 0.79
PV $4,894,976.91 $6,903,946.91 $7,966,996.35
Total PV Revenues $74,581,974.29

Incremental Costs
Base Salary $21,000,000.00 $21,000,000.00 $21,000,000.00
Signing Bonus $2,000,000.00 $2,000,000.00 $2,000,000.00
Amount Deferred -$5,000,000.00 -$4,000,000.00 -$3,000,000.00
Accrued Interest 3%
Insurance $2,300,000.00 $2,300,000.00 $2,300,000.00
Shortstop average Salary 16% $3,000,000.00 $3,480,000.00 $4,036,800.00
Total Costs $17,300,000.00 $17,820,000.00 $18,263,200.00
Discount Rate 8% 0.93 0.86 0.79
PV $16,018,518.52 $15,277,777.78 $14,497,916.98
Total PV Costs $134,867,007.40

Net PV -$60,285,033.12
 2004 2005 2006 2007 2008 2009

414524.05 456665.03 486880.12 508544.33 524077.57 535214.91

$1,036,310.12 $1,141,662.58 $1,217,200.29 $1,271,360.83 $1,310,193.93 $1,338,037.27
$746,143.29 $821,997.06 $876,384.21 $915,379.79 $943,339.63 $963,386.83
$7,461,432.87 $8,219,970.55 $8,763,842.07 $9,153,797.95 $9,433,396.31 $9,633,868.34
$9,243,886.28 $10,183,630.19 $10,857,426.57 $11,340,538.57 $11,686,929.88 $11,935,292.44
$1,428,571.43 $1,428,571.43 $1,428,571.43 $1,428,571.43 $1,428,571.43 $1,428,571.43
$785,730.33 $865,608.57 $922,881.26 $963,945.78 $993,389.04 $1,014,499.86
$11,458,188.04 $12,477,810.18 $13,208,879.25 $13,733,055.78 $14,108,890.35 $14,378,363.73
0.74 0.68 0.63 0.58 0.54 0.50
$8,422,110.27 $8,492,187.95 $8,323,834.51 $8,013,106.14 $7,622,594.45 $7,192,761.61

$21,000,000.00 $25,000,000.00 $25,000,000.00 $27,000,000.00 $27,000,000.00 $27,000,000.00

$2,000,000.00 $2,000,000.00
-$3,000,000.00 -$4,000,000.00 -$4,000,000.00 -$4,000,000.00 -$3,000,000.00 -$3,000,000.00

$2,300,000.00 $2,700,000.00 $2,500,000.00 $2,700,000.00 $2,700,000.00 $2,700,000.00

$4,682,688.00 $5,431,918.08 $6,301,024.97 $7,309,188.97 $8,478,659.20 $9,835,244.68
$17,617,312.00 $20,268,081.92 $17,198,975.03 $18,390,811.03 $18,221,340.80 $16,864,755.32
0.74 0.68 0.63 0.58 0.54 0.50
$12,949,250.25 $13,794,115.99 $10,838,271.68 $10,730,861.60 $9,844,423.47 $8,436,576.43
 2010 2011 2012 2013 2014 2015 2016

543200.38
$1,358,000.94
$977,760.68
$9,777,606.78
$12,113,368.41
$1,428,571.43
$1,029,636.31
$14,571,576.15
0.46
$6,749,459.18

$27,000,000.00

-$3,000,000.00 $5,000,000.00 $4,000,000.00 $3,000,000.00 $3,000,000.00 $4,000,000.00 $4,000,000.00

$1,719,581.90 $1,375,665.52 $1,031,749.14 $1,031,749.14 $1,375,665.52 $1,375,665.52
$2,700,000.00
$11,408,883.82
$15,291,116.18 $6,719,581.90 $5,375,665.52 $4,031,749.14 $4,031,749.14 $5,375,665.52 $5,375,665.52
0.46 0.43 0.40 0.37 0.34 0.32 0.29
$7,082,745.44 $2,881,913.50 $2,134,750.74 $1,482,465.79 $1,372,653.51 $1,694,633.96 $1,569,105.52
 2017 2018 2019 2020

$4,000,000.00 $3,000,000.00 $3,000,000.00 $3,000,000.00

$1,375,665.52 $1,031,749.14 $1,031,749.14 $1,031,749.14

$5,375,665.52 $4,031,749.14 $4,031,749.14 $4,031,749.14

0.27 0.25 0.23 0.21
$1,452,875.48 $1,008,941.31 $934,204.91 $865,004.55