Drew Rosenhaus has had his fair share of clients that he represented prior to and during the NFL Draft, but he is mainly known for the sheer number of players who switch to him when it is time for them to re-negotiate their contract or sign their big second contract.  Rosenhaus’ competition hates it, and so they should.  As an NFLPA certified advisor, you most likely have to pay for your clients’ training, food, and housing prior to the draft (and anything else that comes up).  Then, if you are lucky enough to have your clients drafted, you will take a meager 3% at tops (many agents charge less just so they can compete with guys like Rosenhaus) of their professional contracts.  For non-first rounders, that figure does not come out to much.  Last, you can’t sleep at all because you are always worried that your clients will make a switch to a different agent before you are actually able to negotiate the big contract and make some sort of money to live off of.  Only to possibly lose your client to a guy like Rosenhaus.  Rough life, but you chose to live it.

In baseball, we rarely discuss a guy like Rosenhaus, who players flock to once they are ready to negotiate a big contract.  Scott Boras grabs all the bonus babies before they are drafted and rakes in his nice 5% advising fee early in their careers.  Sure, some players leave their agents for Boras, especially right before becoming arbitration eligible, but we don’t hear about it ALL that much.  In fact, Boras recently lost a big fish to a rival agency; one that might start making a name for itself as one that picks up players after they make it to the pros.

Hendricks Sports Management is run by Randy and Alan Hendricks.  The brothers started the firm in the 1970s, sold it to SFX, and then re-formed the agency in 2003.  They have been in the business for a very long time, are connected to basically every important person in the business of baseball, and have seen their fare share of arbitration cases.  There’s a certain comfort factor for players who are looking to make a switch in representation.  And they are quiet about the clients they actually represent (their website does not list any).  Once a team that represented 16% of all Major League players, after they re-formed the agency in 2003, they say that they are more selective about who they represent.

So why the possible relation to the Rosenhaus brothers?  Well, last year, the Hendricks brothers grabbed Rick Porcello from none other than Scott Boras Corp.  Recently, they signed former Cuba defector, Kendry Morales, who used to be represented by David Valdes.  Is this the start of a new business model for the Hendricks brothers or did they just offer to represent two players who were upset with their previous representation?  Definitely something to keep an eye on.

For the current Internship Program, Justin Herzig (our HR Director) received over 250 intern applications.  Some were thrown away after reading a couple of lines of the cover letter, but most applicants actually seemed extremely qualified for the limited number of spots available.  Do you need to have a law degree, MBA, or internship to break into this industry?  Read Jack Bechta’s story…the answer is no.  But it surely does help to at least have an internship.  Bechta is a part of a very small minority of people who can succeed in this very difficult profession by printing a few business cards and starting up a company with absolutely no experience.

Bechta mentions that there are several agents with a huge client list that never attended law school.  My response is that an agent is not graded by his client list.  There are also many players who end up suing their agent or leaving the agent because of poor execution of his job.  When I first started law school, I wondered myself why so many people said that it was so important for a person to attend law school in order to be an agent.  Criminal law, Torts, Property, Civil Procedure…yeah they may all come in handy, but probably not.  Then came Contracts, Corporations, Business Organizations, Intellectual Property…now it all makes sense.  The knowledge I have after going to law school coupled with the experience I continue to gain with my own clients makes me a better agent every day.

There is also going the route of Bechta and keeping an attorney on retainer for your firm.  I still think that if given the opportunity, go to law school.  Players like having a one-stop shop for all their needs (that’s why CAA, WMG, etc. continue to dominate).  I think that they also want an agent who can wear more than one hat.  To bring a personal knowledge of the law to every negotiation and not have to rely on another person seems to bring some extra value to the table.

As far as grad school for some sort of Sports Management MBA is concerned, I am not completely sold.  If you go that route, I think you should definitely heed Bechta’s advice.  Look at who the professors are and the subjects being taught before you spend all that money.

I can’t disagree with Bechta when he says that overall the 2 most important qualities for success in this industry are:

1. a competitive nature
2. determination

Along with that, I will add a third quality: 3) innovation.  There are so many agents out there going after the same clients, giving the same pitch, and providing the same services.  Do something to make yourself stand out.  Sorry, I already created SportsAgentBlog.com, so making a blog about the sports agent world will not really separate you.  Spend some time thinking about what you can do to make yourself a thing of value.  I promise that the time taken will be well worth it.

As of yesterday, baseball executives and MLBPA agents had crawled up into the Ritz and glitz of Las Vegas, but this trip is not to enjoy the blackjack tables, luxurious pool decks, and clubs that stay open all hours of the night.  The agents and executives are in Vegas for one of the most important baseball events of the year, the Winter Meetings.  Everyone will be “vacationing” in Vegas until Thursday, with many deals going down before that point-in-time.  Before the meetings officially kicked off, there was word of signing talks.  Of the twenty-four players offered arbitration prior to the deadline, only two accepted (David Weathers and Darren Oliver).  You better believe that the other twenty-two players and their agents are on hand in Las Vegas, talking to a variety of GMs and front-office execs.

One guy getting everything comped is the head of Boras Corp., Mr. Scott Boras.  Equipped with an army of aids and a plethora of statistical sheets by his side, he is looking to find over fifteen free-agent clients jobs this offseason.  Derek Lowe believes in Mr. Boras.  But the week is not all about Boras and his legion of clients.  If you are an MLBPA certified agent (meaning you have at least one player on a 40-man roster), it is likely that you have headed to Sin City to partake in the festivities.  The man with the most talked about free-agent player, C.C. Sabathia, is Greg Genske of Legacy Sports Group.  Brad Penny and Pat Burrell are among the other free-agents that Genske is shopping over at the Bellagio.  There has also been a lot of talk about two free-agents managed by the same agent.  Raphael Furcal and Fransisco Rodriguez (K-Rod) are represented by Paul Kinzer.  And as I said, this group makes up a very small portion of the players and agents in attendance.

But the Winter Meetings actually have a purpose besides allowing agents and GMs to meet up to discuss potential deals.  In fact, the original purpose was for it to serve as a yearly meeting for baseball execs to discuss the state of the sport amongst themselves.  One topic for concern this year is the slumping state of the economy.  Minor League teams are especially worried about taking a hit in sponsorship dollars.  I hope that we do not see the economy torment Minor League baseball like it has done to some “minor leagues” in other sports.

Anyway, soon enough, Dynasty will have the chance to show face at the Winter Meetings.  I am told by many agent friends that I should be thankful that I do not have to be a participant yet.  Apparently all agents dread this time of the year.  Drink some coffee and get some rest my boys!

“We’re going to do $300 [million]-$400 million [this year] in contracts like we did three or four years ago.”

Do the math.  Boras Corp stands to make $15-$20 million based on contracts negotiated this year alone.  One would have to assume that the number does not drop off tremendously from year-to-year.  I bet those figures pay the bills.

I also happened to like Scott Boras’ quote concerning outside investment in his company (of which, there is none),

“You can’t have bills because your interest has to solely be on the athlete. In the corporate world, a lot of agents have demands on them from the board. They have to make revenue. My attitude is that whatever you do in this business, whatever you own, whatever you have has to be paid for. That way when you’re negotiating, you’re negotiating strictly for the client, not for the need for money.”

I cannot argue with Boras on a single point of that text.  I have gone back-and-forth in my mind about whether I would accept outside investment in Dynasty, and often have denied it based on the same reasoning that Boras put forth.  As the sole owner of my company, I know that the only people I have to answer to are my clients, which is really how it should be.  The less potential conflicts of interest, the better you can be at representing your clients.

But it also meant, Boras said, that he lost money in his first 10 years in the business. Even Scott Boras, someone all of us have at least at one point looked up to, struggled in the beginning.  So keep up hope.  Even though it is a struggle, when there is a will, there is a way.  To all those trying to make it happen, whether it be starting up an agency or making things happen in another agency, keep on trucking.  You may be the next Scott Boras or even better.

16. Theodore Forstmann Chairman, CEO, IMG (2007 – #26)

37. Scott Boras President, Boras Corp. (2007 – #12)

43. George Pyne President, IMG Sports and Entertainment (2007 – #59)

46. Casey Wasserman Chairman, CEO, Wasserman Media Group (2007 – #79)

70. Tom Condon NFL Agent, CAA (2007 – #90)

98. Arn Tellem President, WMG Management (2007 – #83)

Not ranked. Gene Upshaw Chairman, NFLPA (2007 – #33)

Not ranked. Mark Steinberg SVP and global managing director of golf, IMG (2007 – #72)

Observations

• Similar to last year, I must say that IMG is getting mucho love from the voters.  Forstmann and Pyne received a boost; however, what the hell happened to Steinberg?  He gets his client, Tiger Woods, #1 for two consecutive years and has his name drop off the list?  Where is the justice in that?
• Gene Upshaw, may he rest in piece, must have been left off the list due to his recent death.  Had he still been living, I would bet my money that he makes the list in 2008.
• Wasserman jumps more than thirty slots but Tellem goes down fifteen?  Tellem absolutely tore it up this year with BJ Armstrong is his more than able wingman.  At least no basketball agent was positioned ahead of Tellem on the list.
• Boras has had his fair share of bad moments in the media this year.  While he is still making a lot of money for his clients, I understand why voters have positioned him lower on the rankings.

Last, here is an interesting opinion from Darren Rovell of CNBC regarding agents in this listing:

The most glaring omission from a sector standpoint is the agents. Most notably, Drew Rosenhaus, who I had as No. 20 on my list, is even not in BW’s top 100. Agents Scott Boras (37), Tom Condon (70) and Arn Tellem (98) appear on the list, but I might have had Aaron and Eric Goodwin on the list this year, particularly because of the shoe deals they structured for Kevin Durant, Dwight Howard and Candace Parker.

I agree.  Rosenhaus above the Goodwins, but all of them deserve to be mentioned.  Next question…

Yesterday, the situation took a turn when reports noted that Pedro Alvarez and camp Boras agreed to a 4-year, major league contract with a $6.355 million bonus (ESPN prefers to round up to $6.4 million).  Surprised that this bonus is for more than Posey’s?  Does it all boil down to an ego issue?  Maybe, but at least Alvarez and Hosmer may be able to take the field again soon.  A source cited in the Pittsburgh Post-Gazette believes that this new deal will put an end to the pending MLBPA grievance against the MLB.

I think John Manuel of BaseballAmerica.com says in the first line of his piece what we are all thinking right now: So the Aug. 15 signing deadline really isn’t a deadline after all.

The way that CAA and WMG have acheived their successes in the sports domain has been through the acquisition of prominent agents.  Before CAA and WMG; however, the first company name that comes to my head when I hear acquisitions in the sports realm is Blue Equity (BEST).  In fact, BEST may soon see its name up there in the discussion with CAA and WMG as the top companies representing professional athletes.

SBJ’s list of the top five agencies ranked based on the salaries of their athlete clients is as follows:

1. CAA – $670 million
2. WMG – $451 million
3. Octagon – $333 million
4. Boras Corp – $326 million
5. Priority Sports – $279 million

Number-one overall pick, Tim Beckham, received a $6.15 million signing bonus.  Word is that Beckham’s bonus will be trumped by Buster Posey, who may get a whopping $7.5 million.  Posey was the fifth player taken in the draft (by the San Francisco Giants).  The aforementioned Pedro Alvarez (Boras), Eric Hosmer (Boras), and Brian Matusz were all taken earlier than Posey and remain unsigned at the moment.  After Posey, there are six players who will probably not be signed until the final minutes before the deadline (if signed at all).  They are Yonder Alonso, Aaron Crow, Justin Smoak, Josh Fields (Boras), Allan Dykstra (Boras), and Gerrit Cole (Boras).  I do not know what is more remarkable: the fact that Boras has five players in the first round or that five of the ten players still holding out in the first-round are Boras clients.

Out of all of the first-round players yet to sign, only one seems to be for a reason other than the belief that he feels he deserves higher than slot figures.  Allan Dykstra has medical issues, which has delayed progress between the Padres and Boras Corp in signing the former Wake Forest first baseman.

As of writing this post, here are the bonus babies (highest signing bonuses) in the first ten rounds:

• 1st round (pick 1) – Tim Beckham – $6.15 million (Rays)
• Supplemental 1st (pick 1) – Shooter Hunt – $1.08 million (Twins)
• 2nd round (pick 9) – Destin Hood – $1.1 million (Nationals)
• 3rd round TIE (pick 5) – Roger Kieschnick – $525k (Giants) and (pick 10) – Danny Espinosa (Nationals)
• Supplemental 3rd (pick 1) – Ross Seaton – $700k (Astros)
• 4th round TIE (pick 1) – Ty Morrison – $500k (Rays) and (pick 19) – Matt Cerda (Cubs)
• 5th round (pick 9) – Adrian Nieto – $376k (Nationals)
• 6th round (pick 28) – Brett Marshall – $800k (Yankees)
• 7th round (pick 29) – Tim Fedroff – $725k (Indians)
• 8th round (pick 4) – Bobby Bundy – $600k (Orioles)
• 9th round (pick 15) – Steven Caseres – $250k (Dodgers)
• 10th round (pick 12) – Rashun Dixon – $600k (Athletics)

For a team with a small payroll, the Nationals seem to be spending quite a bit of money on their early draft picks.  Other notes:

• Out of 16 Supplemental 1st round picks, only one remains unsigned: Jeremy Bleich (Yankees)
• Only one player in the entire 3rd round has yet to sign: Chase Davidson (Astros)
• Every single player selected in the 8th round has signed a deal with the club that drafted him.
• The 10th round sticks out, containing ten players that have not yet signed.

For a great breakdown of the reasoning behind why certain players remain unsigned, check out this article published by BaseballAmerica.  Friday shall be an interesting day, indeed.

Manny Ramirez was eying the end of his contract with the Red Sox; an eight-year deal worth a total of $160 million.  The Red Sox had an option to hold onto the slugger for $20 million in 2009 and 2010, but Manny apparently wanted to test the free-agent market.  He fired his former agent, Greg Genske, who took over LS Legacy Sports Group when Jeff Moorad left to become CEO of the Arizona Diamondbacks.  Genske has a very impressive list of clients, including Pat Burrell, C.C. Sabathia, and Scott Kazmir, but Ramirez was not happy.  In February of this year, he dropped Genske and picked up Mr. Boras.

So why the investigation?  Maybe Manny was content playing in Boston, but Scott Boras was inconspicuously pushing him to move, putting money into Boras Corp sooner than later.  Had Manny stayed in Boston, Boras Corp could have been representing Ramirez for the next two years without any commission (if Boston chose to retain Manny’s services at $20 million per year).  Personally, this scenario is hard for me to believe.  I do not think that Scott Boras or his company would be interested in having Manny’s options dropped just so that they could rake some quick dough.  Would an agent ever tell his client to play at half speed just to have his club’s option dropped due to a trade?

I was correct, but the Danks’ allegiance to Boras soon faded into the California sunset. Shortly after the conclusion of the draft, Jordan and his brother John dropped Boras and formed a relationship with Jeff Berry of CAA Sports, who will advise Jordan and serve as John’s agent. No word as to why the brothers Danks decided to exchange Boras for Berry, but it may have something to do with Jordan being picked in the 7th round after being projected as a top 3 round pick prior to the draft.

Jordan Danks is an outfielder who can also perform as a pitcher. The lefty stands 6′5 and weighs in at 200lbs. He is originally from Round Rock, Texas and attended the University of Texas for three years after declining the signing bonus offered by the White Sox after the club selected him in the 19th round in 2005. We shall see if the White Sox present Jordan an offer that he and Berry find to be acceptable…or else he is back to UT for his senior year.