There's been a lot of talk about what kind of value Albert Pujols has on the baseball field. He is the best player in baseball, and he deserves to be paid as such. No body is arguing that. But a Baseball team is a business, and is a $300 million dollar investment in Pujols really a smart business move for the Cardinals? Darren Rovell, the King of all things sports and business related, says no.
Sluggers, like Albert Pujols are a bit harder to figure out. That is, other than to say that he is essentially the Cardinals. That means for the Cardinals to pay that type of money, it would be a defensive move, so as not to lose a huge amount of cash . . .
So, Albert Pujols can’t possibly generate $300 million for the Cardinals on his own. But could he keep the team from financially falling apart over the next decade? Yes.
Rovell is looking at the potential deal strictly in terms of what it does for the value of the franchise. There is no way that Albert Pujols will add $300 million dollars worth of value to the franchise over the course of the contract. But without him, there is no way that they maintain the value that they have now. $300 million is probably not a sound investment, but it is one that the team can't afford not to make. Rovell concludes,
But players are like any asset in business. When companies are considering whether to buy or merge with another business, they are willing to pay a certain multiple of what they are actually worth to seal the deal. That's what the Pujols negotiation is about.
So Pujols isn't worth the contract he is signing, not strictly in the terms of dollars and cents. But the contract is just the price the Cardinals have to pay to stay relevant. But either way, it doesn't seem like an extension is going to come through before the deadline.