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Business and Baseball
How Alex Rodriguez Went From a Dominican Immigrant to Building a Billion $ Empire
Ryan Cox
July 13, 2024
From humble beginnings, A-Rod has transformed into not just a powerhouse in baseball, but a force as an entrepreneur.
Post-retirement, he has navigated the business world with the same determination and skill that defined his athletic career, showcasing his knowledge and expertise on his way to building a billion dollar empire.
Photo: Rafael Amado Deras
Table of Contents
Who is Alex Rodriguez?
Alexander Emmanuel Rodriguez, or as you might know him, “A-Rod,” is a former MLB shortstop and third baseman.
Born in July 1975 to Dominican immigrant parents in Washington Heights, Manhattan, his family moved to the Dominican Republic when he was four before settling in Miami during his fourth-grade year.
Alex was introduced to baseball by his father who played in the Dominican Republic, and his talent was evident from a young age.
“It started probably when I was, like, 10 years old. I always had two passions, and they’ve been two B’s: baseball and business.”
He transferred to Westminster Christian School in Palmetto Bay, FL after his freshman year. Here, he excelled as both the star shortstop on the baseball team and the star quarterback on the football team.
In his junior year, Rodriguez led his team to a high school national championship, was named USA Baseball Junior Player of the Year, and became the first high school player to try out for the U.S. national baseball team.
Despite a scholarship offer from the University of Miami to play both baseball and football, Rodriguez chose to sign with the Seattle Mariners after being selected first overall in the 1993 MLB Draft.
Rodriguez's MLB career spanned 22 seasons, including seven with the Mariners, three with the Texas Rangers, and twelve with the New York Yankees.
After showcasing his skill in Seattle, he made headlines in 2000 by signing a record-breaking 10-year, $252 million contract with the Rangers.
During the first half of his career as a shortstop with the Mariners and Rangers, he won numerous awards, including five Silver Sluggers, two Gold Gloves, and one MVP.
Despite his stellar performance, A-Rod was expensive, so the Rangers had to trade him to the Yankees in 2004, where he moved to third base to accommodate legendary shortstop, Derek Jeter.
In 2007, Rodriguez made headlines again when he opted out of his contract to sign another deal with the Yankees, breaking his own record at $275 million over 10 years.
Alex would finally win a World Series 15 years into his career over the Philadelphia Phillies in 2009.
However, Rodriguez's career was marred by controversies over performance-enhancing drugs (PEDs).
He admitted to using PEDs in 2009 with the Rangers during the early 2000s, just two years after denying use of any kind. He was also later linked to Human Growth Hormone (HGH) use during the Biogenesis scandal, resulting in a suspension for the entire 2014 season.
“Like everyone else, I’ve made a lot of mistakes in my life. The only way I know how to handle them is to learn from them and move forward.”
After the suspension, A-Rod exclusively became a designated hitter due to the knee and hip injuries he suffered.
Despite these setbacks, Rodriguez retired as one of the greatest players in baseball history–Some might even argue he had a Hall of Fame worthy career at both shortstop and third base, although his steroid use has impacted his Hall of Fame eligibility.
But A-Rod knew that baseball was never going to last forever, and has flawlessly executed on his gameplan to enter the business world after his retirement.
“It was weird because I was thinking about life after baseball before my rookie season. I just think that the connectivity to baseball and business was always good. They both have numbers involved. So that’s kind of my language.”
What is Alex Rodriguez’s Net Worth?
Alex Rodriguez's net worth is estimated to be around $450 million. However, considering his extensive business portfolio, it could be even higher.
A-Rod earned a significant portion of his wealth from his baseball career.
He signed two of the most lucrative contracts in MLB history: a 10-year, $252 million deal with the Texas Rangers and a subsequent 10-year, $275 million deal with the New York Yankees after opting out of the former contract 7 seasons in.
Before these massive contracts, he completed his three-year rookie contract with the Mariners worth $1.3 million plus a $1 million signing bonus and a four-year extension worth $10.7 million.
In total, Rodriguez made an estimated $440 million from his time in the MLB.
Rodriguez was smart with his money from the very beginning, influenced by advice from Earvin “Magic” Johnson.
“You gotta start somewhere, and you gotta start small.”
Following this advice, A-Rod made his first investment in a duplex apartment at just 22 years old.
He candidly shares how this initial investment was the foundation of his real estate endeavors–he flipped that duplex for a four-plex, then an eight-plex, and eventually a 60-unit apartment complex.
“We were lifelong renters as a kid with my mom. And I remember we had to move every 18 months because the landlord kept raising the rent. So one of my early prayers that was answered was, if I ever get an opportunity to change places with a landlord, I will.”
Real estate is just one facet of Rodriguez's business ventures.
Since retiring from baseball in 2016, he has built a diverse and successful empire.
His strategic investments and entrepreneurial activities have positioned him on the path to becoming a billionaire.
Alex Rodriguez’s Business Ventures
In 1995, Alex Rodriguez founded A-Rod Corp after purchasing his first rental property. His primary goal was simple: avoid the financial pitfalls that many athletes face.
Rodriguez approached his business career like building a pyramid. At the base, he experimented with various ventures with two objectives in mind: secure good returns and gain a comprehensive understanding of the space.
The middle part of the pyramid was about identifying his passions.
Finally, at the top, he focused on executing on ventures where he felt he had built expertise, a competitive advantage, and could add significant value to clients.
For Rodriguez, this pyramid strategy led to his focus on two main areas: sports and real estate.
“I always remember that I wanted to be in business, and I wanted to be a major league baseball player. I thought the business route was more realistic. Because really, don’t we all want to be baseball players, but usually, we don’t make it, right? So that was kind of where it started.”
Real Estate
Real estate is where Alex Rodriguez began his investment journey and remains a primary focus of his efforts and capital.
According to A-Rod, the real estate business is better than baseball for several reasons:
Recurring income
Ability to force appreciation by repositioning properties
Ability to refinance and pull cash out tax-free
Hedge against inflation
“I needed a little bit less than $50,000 for a down payment. And that was the start of what I've been doing now for almost 25 years. We’ve acquired over 20,000 multifamily apartments. And we’ve acquired almost 10,000 single-family homes.”
All Angles
A-Rod Corp initially invested in residential buildings, focusing mainly on apartments in Miami and Manhattan.
Over time, Rodriguez expanded his business to include his own developments, eliminating the need to contract out major projects.
Collaboration is key for Alex, partnering with others to enhance his ventures. He has initiated funds to pool multiple investors together, allowing for the purchase of larger properties and further expansion beyond his primary cities.
Through Project Destined, Rodriguez also contributes to real estate education, helping kids learn about investing in real estate and emphasizing the importance of financial literacy.
The Units
A-Rod Corp is headquartered in Miami, Florida, where Rodriguez has numerous properties.
Notable developments include:
Fairchild Coconut Grove: A 26-unit waterfront condo in the Coconut Grove neighborhood.
Grand Station: A 30-story apartment building with 300 units in Downtown Miami.
North Bay: A Miami Beach office complex, co-invested with Starwood Capital Group.
In New York City, Rodriguez has made significant investments as well:
HH: An apartment building in Manhattan, co-invested with “Shark Tank” investor Barbara Corcoran of The Corcoran Group.
Stonehenge 51: A 114-unit apartment building in Midtown Manhattan.
Stonehenge NYC: A company involving A-Rod Corp and partners, providing investment management, property management, construction, and development services.
The Funds
A-Rod Corp has expanded its influence through strategic funds that bring together partners for investment opportunities beyond Miami and Manhattan.
Hedge Fund: Valued at $650 million, this fund includes partnerships with CGI Merchant Group, Maverick Commercial Properties, and Hilton. It focuses on acquiring and developing hotels in North America and the Caribbean. The fund's first asset was the Gabriel Hotel in downtown Miami, with a target of over 20 hotels in the next three years.
Monument Capital Management: Founded by Alex Rodriguez and Ramon Corona in 2012, this company has acquired over $800 million in real estate through four separate Opportunity Funds. They focus on markets with strong workforce housing demand, investing in apartment complexes across more than a dozen states in the U.S.
“The assets will be housed within the Hilton portfolio of brands, adding to the hospitality industry leader’s portfolio consisting of more than 6300 properties in 118 countries and territories worldwide.”
Investments and Partnerships
A-Rod Corp has invested in a total of 43 companies across various sectors, including A-Rod Ventures, Venture Capital, Private Equity, SPACs, and Partnerships.
Additionally, Rodriguez has made sports-specific investments, leveraging his extensive industry experience.
A-Rod Ventures
A-Rod Ventures comprises general business investments aimed at generating returns through dividends, interest, or capital appreciation, including stocks and bonds.
A-Rod Corp has an impressive portfolio of companies that have reached IPO:
Archer: An urban air mobility company, partnered with Fiat Chrysler, designing and operating fully electric vertical takeoff and landing (eVTOL) aircraft.
hims & hers: An online platform providing access to medical professionals, products, treatments, and support groups.
Oscar: Simplifies and makes health insurance more affordable.
Snap: An investor in Snapchat's parent company in 2016, A-Rod Corp exited profitably in 2017.
Sonder: Matches travelers with vacant student apartments, offering full services and 24/7 support.
Wheels Up: The second-largest private aircraft operator in the US, providing on-demand rentals and luxury travel experiences through a partnership with Delta.
A-Rod has also invested in promising companies yet to go public:
Acorns: An investment platform designed to simplify investing.
Eight Sleep: Produces high-tech mattresses focused on "sleep fitness."
NFL Fit: NFL-branded fitness facilities featuring luxury amenities.
Nova Credit: Helps immigrants access financial services by translating international data into U.S. credit scores.
UFC GYM: Acquired rights in 2017 to develop UFC-branded fitness centers in Miami.
Venture Capital
A-Rod Corp Venture Capital focuses on early-stage, high-growth startups through venture capital, offering high-risk, high-reward opportunities with active involvement in company development.
“VCP Ventures is a ground-breaking partnership between Alex Rodriguez and Marc Lore, who bring unparalleled value as founders, investors, and partners through their combined platforms and proven start-up playbooks.”
Notable investments include:
Bandit: A community-centered athletic apparel brand.
Focused Energy: Developing fusion energy as a clean alternative.
Jump: Enhances fan experiences at sporting events.
Mojo: A sports stock market platform for betting on athlete performance.
Nines: A household management platform focused on security.
Tornado: A mobile brokerage platform emphasizing investor education.
Tracer: A data intelligence platform for marketers.
VideoShops: Provides live shopping experiences.
Private Equity & SPAC
Private equity involves investing in mature companies to restructure and improve profitability, while SPACs raise funds through IPOs to acquire existing companies.
Private Equity: A-Rod Corp helps transform companies through strategic and operational support.
“A-Rod Corp helps companies transform—by providing strategic and operational support and leveraging the expertise of Alex Rodriguez and the A-Rod Corp Team.”
Slam Corp: A SPAC led by Alex Rodriguez and Himanshu Gulati, focusing on acquisitions.
“Slam Corp is a special purpose acquisition company (SPAC) led by renowned investor and World Series Champion Alex Rodruguez and Himanshu Gulati, Founder and chairman of Antara Capital.”
Partnerships
A-Rod Corp forms partnerships where ownership, profits, and responsibilities are shared to pool resources and expertise.
Notable partnerships include:
Presidente Beer: A-Rod has served as chairman since 2020.
Carta: Created a course covering equity basics.
DirecTV: Participated in a 2022 marketing campaign.
Facebook: Featured in commercials for Facebook Portal.
JBL: Partner and spokesperson for the brand.
Mercedes-Benz: Owned a franchise in Texas from 2004 to 2014.
Ralph Lauren: Launched a new cologne in 2019.
Sports Ownership
Rodriguez's ventures into sports ownership are currently developing.
He is part of the ownership group for the NBA's Minnesota Timberwolves and the WNBA's Minnesota Lynx, alongside co-owner Marc Lore. The investment also includes the NBA G League's Iowa Wolves and T-Wolves Gaming.
Currently, A-Rod holds a 40% minority stake and has attempted to acquire an 80% majority stake with Lore.
However, Glen Taylor, the current majority owner, has stated as of March 2024 that the team is no longer for sale, reportedly after A-Rod and Lore already filled their side of the contract.
“I think Glen just decided this team is worth a lot more than when he did the deal, and he no longer wants to abide by the contract. It's plain and simple."
Michael Bloomberg has also reportedly joined the ownership group looking to acquire the majority stake, making this a developing story expected to unfold through the summer of 2024.
Media
Following his legendary baseball career, A-Rod has continued to stay in the public eye through his work in media via A-Rod Media.
After retiring, Rodriguez didn't initially plan on having a career in broadcasting. However, his time as a broadcaster for Fox made him realize he enjoyed discussing baseball, likely a result of constantly watching MLB Network at home.
In 2018, he joined the ESPN Sunday Night Baseball crew, reportedly securing the most lucrative deal for an MLB analyst–but what’s new for A-Rod?
“A-Rod Media offers scalable, multimedia capabilities, including original content creation, compelling narrative storytelling, and audience engagement across all marketing platforms.”
Personal Projects
A-Rod has also ventured into personal media projects.
He hosts a podcast on Bloomberg called The Deal, where he and co-host Jason Kelly engage in conversations with business leaders, sports champions, and entrepreneurs about their business philosophies, investments, and careers.
Notable guests have included Serena Williams, Michael Strahan, and Maria Sharapova.
In 2019, Rodriguez launched his own show, Back in the Game. The show aimed to help athletes regain financial stability after their careers ended.
In its single season, Rodriguez helped former basketball player Joe Smith, who had lost his $60 million career earnings.
More Appearances
Beyond baseball and his own ventures, Rodriguez remains active in various public appearances.
He has been a guest on Shark Tank, investing in small businesses.
Additionally, he has made cameo appearances on television and in movies, including a notable appearance in the show Entourage.
And, for those interested, A-Rod is available for public speaking engagements with a booking fee of $70,000.
“Following a legendary 22-year career in baseball, Alex maintains an active media presence. Alex is an Emmy Award-winning MLB analyst for Fox Sports and ESPN. He has been a judge and investor on ABC’s Shark Tank, mentored financially distressed ex-athletes on CNBC’s Back in the Game, and co-hosts the video series The Deal with Bloomberg Originals’ chief correspondent Jason Kelly, interviewing CEOs, entrepreneurs, and sports legends. As a speaker, he entertains audiences on a broad range of topics including baseball, leadership, business, and the championship mindset.”
The Success Strategies of Alex Rodriguez
Start Somewhere, Start Small: Rodriguez knows that even billionaires had to start somewhere. His journey began with the purchase of a duplex apartment at age 22, gradually scaling up to larger and more profitable investments.
Long-Term Mindset: A-Rod operates with a long-term perspective, envisioning his investments as if he will own them for 100 years. This approach simplifies his decision-making, focusing on sustainable growth rather than quick gains.
Learn From Others' Mistakes: Rodriguez has had the privilege of being mentored by Warren Buffet and studying at prestigious institutions like the University of Miami, Columbia, and Stanford. He values learning from both the successes and failures of others, as well as from his own experiences.
Make Smart Long-Term Investments ASAP: A-Rod advises young investors that starting early with smart investments can lead to substantial wealth over time. It’s hard to beat compound interest over 20, 30 or 40 years.
If You Stop Learning, You Stop Living: Rodriguez believes in the continuous pursuit of knowledge. This principle is evident in his diverse business portfolio and his dedication to ongoing education and self-improvement.
The Bottom Line
Alex Rodriguez is a busy man with a diverse and thriving portfolio.
There’s a lot to learn from A-Rod. Starting small, trying new things, and believing in the process are key to his success.
His journey from humble beginnings to now building a billion-dollar empire demonstrates the powers of compound interest, and his business pyramid model showcases his intelligence in leveraging his strengths for results.
As he continues to navigate the world of business, A-Rod remains an entrepreneur worth watching. His trajectory promises to be as dynamic and influential as his career in baseball.
Always follow your dreams, don’t let anyone tell you that you can’t be something.
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