Warren Buffett Saves Yankees Season

[DesertCat]

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By KATE KELLY and DANA CIMILLUCA Wall Street Journal
November 17, 2007; Page A1

In the public imagination, sports negotiations unfold along the lines of "Jerry Maguire" and other fictional portrayals -- fast-talking, bare-knuckled agents going to head-to-head with cigar-smoking team owners in a game of "Show Me the Money."

But when New York Yankees third baseman Alex Rodriguez stumbled in his efforts to ink a stratospheric new contract, he turned to a different set of characters: Omaha investor Warren Buffett and two executives from Goldman Sachs Group Inc.

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Mr. Rodriguez's initial defection happened in late October, a tense period for the team during which its beloved manager Joe Torre was effectively ousted after the Yankees were eliminated in the playoffs. Hoping to net a richer contract elsewhere, Mr. Boras advised his client to exercise his opt-out clause, a move reported Oct. 29. The player reluctantly took his agent's advice, say people familiar with his thinking, even though he and his wife Cynthia were eager to stay in New York and have him continue to play for the Yankees.

Amid deafening criticism by sports writers and on talk radio, a worried Mr. Rodriguez called Mr. Buffett, say people familiar with the matter. The two had become friends a few years ago, after the slugger flew to Omaha to meet with the investing guru and rabid baseball fan. After that, the two met socially several more times, say the people familiar with the matter. Signifying their mutual admiration, an autographed Rodriguez jersey hangs at Berkshire Hathaway's Omaha headquarters.

Mr. Buffett's advice was simple, says a person familiar with the matter: approach the Yankees solo, without Mr. Boras. "A-Rod really loves being a Yankee," says Mr. Buffett. He declined to comment on the substance of any conversation with Mr. Rodriguez, saying he doesn't discuss private talks.

The day after his opt-out was publicized, Mr. Rodriguez contacted Goldman wealth manager John Mallory, whom he had met through family in Miami. Although Mr. Mallory had moved to Los Angeles, Calif. about a year ago, where he now manages Goldman's southwest wealth-management division, the third baseman had stayed in touch, say these people, and the Goldman executive continued handling the Steinbrenner family's wealth-management account, giving him a close link to the team's owners.

During the call, Mr. Rodriguez appeared to be "beside himself" that he was on the outs with the Yankees and eager to extend an olive branch, say people with knowledge of the matter. Mr. Mallory promised to see what he could do, this person adds.

Mr. Mallory called Gerry Cardinale, the Goldman partner who handles media and telecommunications investments for the firm's private-equity unit. "You're not going to believe this," said Mr. Mallory, according to people with knowledge of the matter. He explained that Mr. Rodriguez had called, and that the player wanted to "reestablish a dialogue" with the Steinbrenners.

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If the deal goes through, it's a happy ending for most everyone involved. The 32-year-old Mr. Rodriguez gets a richer pay package, which includes incentives if he manages to reach goals like breaking the home-run record set by Barry Bonds. The Yankees and Goldman get to keep Mr. Rodriguez's star power, which helps sell tickets and attract cable viewers.

And Mr. Boras still gets his commission.

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[Franchise 60]

Already posted a similar link in the A-Rod thread.

People will still act like this was all masterminded by Boras and the Yankees begged A-Rod to come back ldo.