According to Jon Heyman of CBS Sports, the Yankees and Alex Rodriguez have agreed to terms on the milestone home run bonus dispute.
by settling dispute charitably (for $3.5M), yanks have no luxury tax implications from a-rod milestone homer
— Jon Heyman (@JonHeymanCBS) July 3, 2015
Here is the official joint press release from Major League Baseball and the Players Association:
“Major League Baseball and the Major League Baseball Players Association jointly announced today that the New York Yankees and Alex Rodriguez have amicably resolved their potential dispute regarding Rodriguez’s entitlement to bonus monies under the provision of his player contract covering historical statistical accomplishments.
As part of this resolution, Mr. Rodriguez and the Yankees have agreed that a total of $3.5 million in charitable contributions will be made by the Club, with $1 million going to the following charities that have long enjoyed the support of one or both: the Special Operations Warrior Foundation, the Boys & Girls Club of Tampa, and Pitch In For Baseball; and $2.5 million going to the MLB Urban Youth Foundation, which will use the money to further programs and initiatives aimed at increasing youth participation in baseball, particularly in urban areas. Commissioner Robert D. Manfred, Jr. will determine the initiatives to be supported by the $2.5 million contribution after consulting with Mr. Rodriguez, and taking into consideration the focus of Mr. Rodriguez’s past charitable contributions.
Neither party will have any further comment on the specific terms of the agreement and both look forward to focusing their energies on winning another championship for Yankees fans.”
Rodriguez passed Willie Mays on May 8th for fourth place on the all-time home run leader list and was set to earn a $6 million bonus for tying Mays but the Yankees were trying to get out of paying him this bonus and future bonuses, citing A-Rod’s suspension for violating MLB’s drug policy making it “unmarketable.”