Is C.C. Sabathia Worth $161 Million? Valuing Long-Run Contracts



In December 2008, the hot stove league received its biggest jolt in years when the New York Yankees signed ace C.C. Sabathia to a contract that would pay him $161 million over the seven following seasons. There was little debate that Sabathia was the best pitcher among the available free agents; but, to many observers, an average salary of $23 million a year was just too much, especially in the climate of a recession. Mike Cramer, a former Texas Rangers president turned Sport Management Professor commented, “I think it’s crazy and I think the numbers are out of whack.” During a radio interview, Florida Marlins President David Sampson commented that the Sabathia signing was irresponsible and compared the Yankees to “drunken sailors.”


Free Agent Major League Baseball Baseball Player Ticket Price Average Team 

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© Springer Science+Business Media, LLC 2011

Authors and Affiliations

  1. 1.Kennesaw State UniversityKennesawUSA

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