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....God knows why Ducati upper management paid the ludicrous amount of money to Rossi,...
Because Stoner had won a WC on their bike in 2007, because Stoner gave Rossi a solid run for his money in the 2008 WC, and was still putting their bike on Pole position, taking regular podiums and occasional wins even at the end of 2010.
All the Ducati needed to dominate MotoGP was a great rider like Rossi instead of the the useless, crashing moaner that they thought Stoner was.