If Alex Rodriguez cannot play in 2013, or is forced to retire because of the hip injury that will require surgery next month, it would not be a financial loss for the Yankees.

The Yankees are insured for a good portion of the $114 million they owe Rodriguez over the next five seasons, according to a source.

It is likely that New York could recoup at least 75 percent, and perhaps as much as 100 percent, of the money it would still have to pay Rodriguez, according to the source.

Rodriguez would have to be disabled for at least a full season before the team could begin to collect on the insurance policy.