Economist: Pujols’ Contract May Not Be All That Lucrative After All

ST. LOUIS (KMOX) –  Did Albert Pujols pull the trigger too soon on a decision to pack up and move out west to play baseball for the Los Angeles Angels, without factoring in all financial considerations?

Only time and the former Cardinals slugger can answer that question, but a local economist says from a purely economic standpoint, Pujols may have struck out.

“From a purchasing power perspective he’s not as well off,” suggests Webster University economics professor Patrick Rishe. “He was going average $22 million a year here (in St. Louis). To live in Los Angeles, to equal $22 million you need $33.1 million, I did the calculation. So actually his purchasing power is less.”

Pujols’ deal in L.A. will pay him $254 million over 10 years, an average of $25.4 million a year.

And another thing, Rishe says…Albert Pujols becomes a smaller fish in a much bigger pond, lowering his profile.

“Baseball is not THE top attraction out there in terms of sports,” Rishe points out. “The Lakers dominate the landscape.”

And when it comes to baseball, he adds, “It’s more of a Dodgers town than an Angels town.”

Finally, the fact that this is a post-recession deal also had a negative impact on the bottom line.

“Because if this had gone down prior to the recession, right after Alex Rodriguez signed his historic contract,” Rishe maintains, “Albert probably would have received an average annual salary closer to $30 million a year because that’s in the ballpark that Rodriguez receives.”

He suggests that by staying loyal to the Cardinals after 11 seasons and keeping his roots planted in St. Louis, Albert Pujols may have actually received a bigger bang for his big, big bucks.

Patrick Rishe made his comments Friday morning as a guest on KMOX’s Total Information AM.

Copyright KMOX Radio

  • Baseball will live on in STL

    I agree with the loss of purchasing power, but we arent talking about $50 or even $100K here… With $250M you can live anywhere comfortably.

  • ed golterman

    Patrick: From your protected seat at a University would you admit the Dewitts
    can and should give the City the ticket tax revenue. And confirm it is at least $6 million a year pro-rating the sky boxes, and including the U-2 Concert? We don’t care about his contract now, not at all interested. He is history. The economic hardships on the City and its people are serious. Also tell us the economic contributions of downtown perfor4ming arts centers

  • John LeBoube

    Albert is now in the rearview mirror the city will be impacted by his loss that is understood. But a 10 year deal at his age (whatever his real age is) is a risk that is not worth taking at this stage in his life or in a small market like St. Louis. The fans will return en masse if Matheny can conjure up a winning club next year.

  • Michael Foxworth

    The observation that the Dodgers dominate the LA MLB market is passe, at best. The McCourt debacle has changed all that for the Dodgers and Southern California. Arte Moreno, the innovative and successful Hispanic owner of the Angels, has made some shrewd moves to raise the stock of the Angels locally and nationally. The Pujols and Wilson signings are substantial proof that the Angels will be a competitive leader for the next decade on the field and at the box office.

  • Larry

    The big picture for Albert – the huge Latino population and tinseltown. Talk about sense of community! And rubbing shoulders with movie stars! He, Kobe and Beckham get to play golf together year-round. Disneyland and surfing for the kids. All the fame, the fortune and sailing into the sunset. Seems very clear to me, why he jumped all over this move. StL – sure he was a demi-god and worshipped as a ballplayer, but LA/Socal – he’s truly home now. Question: what happens to Yadi now? Can he overcome losing his comrade?

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