A-Rod: Signing the Best Player in Baseball 2013 rugsėjo 1 d.

Contents The Case Alex Rodrigues The Texas Rangers Evaluation Sources data VU, fakultetas

The Case Analyzing a invesment decision whether Texas Rangers should spend 252 million dollars for the services of shortstop Alex Rodriguez. The contract was for 10 years and worth 252 million dollars. The signing was probably the most controversial sports contract of the past decade. data VU, fakultetas

Alex Rodriguez He became the youngest player in Major League Baseball (MLB) Draft. His third full season in the major, he won batting title. He is the third man in Baseball history who hit 40 home run and steal 40 bases in the same year. 2013 rugsėjo 1 d. VU Ekonomikos fakultetas

Alex Rodriguez Offensive Statistics Year Batting Average RBA Home Runs Stolen Bases SLG AWARDS 2000 .316 132 41 15 .606 AS, MVP-3,SS 2001 .318 135 52 18 .622 AS, MVP-6,SS 2002 .300 142 57 9 .623 AS, MVP-2,SS 2003 .218 118 47 17 .600 AS, MVP-1,SS 2004 .286 106 36 28 .512 AS, MVP-14,SS 2005 .221 130 48 21 .610 2006 .210 121 35 .523 AS, MVP-13,SS 2007 .314 156 54 24 .645 2008 .302 103 .573 AS, MVP-8,SS 2009 2010 .270 100 125 30 14 4 .532 .506 MVP-10,SS AS, MVP-15,SS 2013 rugsėjo 1 d. VU Ekonomikos fakultetas

The Texas Rengers 1998-2010 Tom Hicks The Texas Rangers are an American professional baseball team based in Arlington, Texas, located in the Dallas–Fort Worth metroplex. Established : 1971 League History : 2000 – Present Major League Baseball .1961 – 1999 American League. Stadium 1994 – 2004  The Ballpark in Arlington (49200seats). 1972 – 1993 Arlington Stadium (42000seats) Owner : 1989 – 1998  Richard Rainwater and George W. Bush. 1998-2010 Tom Hicks data VU, fakultetas

Net Cash Flow data VU, fakultetas

Evaluation We came to the conclusion that the contract should bring value to the Texas Rangers. We used the Discounted Cash Flow Analysis to estimate the value of the contract. data VU, fakultetas

Sources http://www.investopedia.com/university/dcf/ http://www.investopedia.com/terms/n/npv.asp https://www.fangraphs.com/library/misc/war/replacement-level/ Chapter 9 Lecture Slides data VU, fakultetas