In March 2010, a reader asked if I had heard anything about Casey Close leaving Creative Artists Agency (CAA) to start up a new company with long time basketball agent David Falk.  Perhaps at one point in time, Close had contemplated teaming up with Falk.  In the end, he ended up choosing former IMG co-employee, Jeff Schwartz (pictured right), the current President of Excel Sports Management.

Up to Close’s departure from CAA and inclusion in Excel, Schwartz’s company has strictly represented basketball players in the USA and abroad, including familiar names like Jason Kidd, Kevin Love, Lamar Odom, Paul Pierce, and many other superstars.  With Close in the fold, Excel will also represent some of the best players in baseball.

This move increases Excel’s caché and puts the company in a new class of sports agencies.  With some of the best in baseball and basketball under one roof, Excel is certainly a firm that becomes tougher to compete against.

Former CAA Baseball Agent Casey Close Joins Excel Sports Management from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Best Contract Of 2010 from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

This is such an interesting negotiation, because it’s not entirely clear as to who holds the leverage. As much as Derek Jeter needs the Yankees, the Yankees need Derek Jeter. They are a couple that is never meant to be split. How would Yankees fans react to someone other than #2 at shortstop? Would they become restless and angered if the Yankees extended Jeter a 6 year deal and his offensive numbers and defensive range continued to diminish? What is more fascinating is that the Yankees are historically known for overpaying in free agency to get what they want, yet when they now deal with their most important player in the last 2 decades, something has obviously changed. My answer: The death of George Steinbrenner. There is no doubt in my mind that if the boss were still alive, Jeter would be getting a deal that favors his demands (5 year $100 million deal). With the Steinbrenner boys now running things, it is apparent that there is a new aura about the Yankees, especially when it comes to contract negotiations with their players. I think this negotiation is meant to set a precedent for the future in the new Yankee management system. They live in the present, not in the past, and as Hank Steinbrenner recently stated, “I don’t feel we owe anyone anything monetarily.” When the day does finally come when the core four (Jeter, Rivera, Pettite and Posada) all hang up the cleats and call it quits, the final piece of George’s Yankees will officially be gone, and the days of 10 year A-Rod/Jeter mega deals will be long gone.

Yankee fans do not worry; Derek Jeter will be in pinstripes next season. It’s a question of which side will budge first, and quite honestly, I wouldn’t test Hank and Hal Steinbrenner right now. They seem to be on a mission to make a point very clear to the players, media and fans: Drink the reality potion Derek Jeter, you’ll get what you deserve and not what you demand.

The Ultimate Chess Match from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Baseball

• Casey Close was one of 10 members inducted [U-M Alum Close Enshrined into Cape Cod Baseball Hall of Fame].
• While we are on the subject of Casey Close.. [Derek Jeter's agent Casey Close says Yankees public hardball with shortstop is 'baffling'].
• Named to the adjunct faculty at Marquette University Law School [Bud Selig: law school professor].
• A lot of older guys were not offered arbitration [Teams offer arbitration to just 14 of 29 “Type A” free agents].

Football

• Questioning why Jimmy Sexton was included on the panel [Is NCAA’s Agent For Change Completely Insane?].

Golf

• I find it interesting that Steinberg commissioned a study that involved polling of a certain target demographic to determine when it was the right time to start talking business again [A Year Later: Tiger's Agent Opens Up].

Recruiting

• It’s a lot more complicated than just starting to pay student-athletes a salary [Pay college athletes? No].

Shabbat Shalom: Friday Wrap-Up (11/26/2010) from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Sports Business

• It certainly helps when Josh Hamilton and Cody Ross endorse your product for free [Evoshield Gets Big Buzz Before It Hits Stores].

Football

• Under North Carolina law, documents and other information generated by state agencies and institutions should be, with limited exceptions, made public [Triangle media groups seeking football records sue UNC].
• Should the NFLPA be doing more to check the quality of those on its approved list of financial advisers? [NFL players at risk of financial roughing]

Baseball

• Negotiations will probably come down to number of years on the contract [Agent: Derek Jeter has huge value].
• Some good information from my friend Robert Raiola [Cliff Lee & Taxes In Texas].

Sports Law

• $25 million lawsuit alleging defamation, false light invasion of privacy, and negligent misrepresentation [Promoter at center of O.J. Mayo scandal at USC sues NCAA].
• Nathan Peake was Steve Francis’s mentor and business manager [Sports agent booked for tax evasion].
• And Florida is supposedly one of the few states “tough on agents” [Records show few agent busts since FSU scandal].

Shabbat Shalom: Friday Wrap-Up (11/5/2010) from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Baseball

• Who gave Torii Hunter a first place vote? [Derek Jeter Again Tops The Daily's Most Marketable In MLB Survey].
• Saying no to $2.4 million? [Kyle Parker Spurns Rockies Offer; Will Quarterback Tigers in 2010]

Football

• When the states get involved, it’s time to take things seriously [N.C. Secretary of State starts agent probe].
• Let’s see if the same is true for the NFLPA [De Smith: "God help those agents" who violate rules regarding paying college players].
• Blake Baratz joins the crusade [RandBall Q&A: One sports agent's thoughts on Nick Saban and the ethics of the business].
• Perhaps the NCAA should not be bragging at this point [Is The NCAA Really Boasting About Agent Regulation?].

Sports Business

• SportsAgentBlog.com remains independent.  Our asking price is $1 billion [With Traffic Surging, SB Nation Buys One Blog And Starts Another].

Sports Law

• Lozano left BHSC, not BEST, but still a good post [When The Agent Is Sued And The Player Is Caught In The Middle].

Shabbat Shalom: Friday Wrap-Up (7/23/2010) from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Have you heard anything about Casey Close leaving CAA to start up his own company with David Falk?

Apparently, the rumor had been floating around for a month or so, but after doing some research, I had no way to confirm it.  Thus, I never ran the story.  Now, I come to find out that Liz Mullen of SportsBusiness Journal reported yesterday that Casey Close may, in fact, leave juggernaut Creative Artists Agency (CAA), and may be considering either starting up his own practice, or joining David Falk at FAME.

Casey Close used to be the captain of the CAA Baseball ship, but as of roughly nine months ago, five different CAA baseball agents began splitting the responsibilities of division director.  Those agents are: Nez Balelo, Brodie Van Wagenen, Jeff Berry, Joe Urbon and Greg Landry.  I find that interesting, since Casey Close is still with CAA, has not officially announced that he will be leaving, yet CAA changed the structure of the baseball division.

Here are some of the names you have heard of that are currently represented by Casey Close (some are split between Close and another agent): Ben Sheets, Jason Jennings, Aaron Hill, Derrick Lee, Josh Vitters, Connor Jackson, Buster Posey, Jeremy Sowers, Jamey Wright, Ryan Zimmerman, Justin Maxwell, John Lannan, Jeremy Guthrie, Chris Lambert, John Mayberry Jr., Jeff Clement, Jeff Niemann, Gil Meche, Alex Gordon, Josh Fields, Michael Cuddyer, and some guys named Ryan Howard and Derek Jeter.

Talk about a client list.  It will be interesting to see which players stay with CAA and which ones leave with Casey Close, and if any battle ensues between the entities prior to or after Close leaves the agency (if he leaves at the culmination of his current contract).  Time to pull out the employment contracts!

Casey Close To Leaving CAA from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

It makes sense that major West Coast agencies continue to grow.  Creative Artists Agency was a player in the entertainment world well before it started buying out the largest sports agents/agencies.  It figured that its existing model and connections could bring in more revenue than those entities had been receiving in the past.  It seems to be doing quite well with that business plan.  Another company with broad entertainment connections for its clients is Wasserman Media Group.  I don’t know when agent Arn Tellem finds time to sleep, with his enormous list of clients in professional basketball and football.  He probably receives over one-hundred calls per day from GMs, reporters, and clients, and still finds time to go on the recruiting trail and find new business.  He also keeps his current clients happy, and seems to have a strong connection to the entertainment world through his wife, Nancy Tellem.  Nancy is the President of CBS and is in charge of all of its television programming.

Quite the power couple, and it definitely benefits Arn’s clients.  Recently, Pau Gasol made an appearance on CSI: Miami.  Last year, Gasol and Jordan Farmar appeared on NUMB3RS.  Both shows are on CBS, both players are clients of Arn Tellem and WMG.  Gasol and Farmar are not the biggest names in the game of basketball, but both of them are playing in Los Angeles, so it is natural for them to want a piece of the limelight.

Want to be a MAJOR player in this industry?  Better start cultivating those connections in the entertainment industry, as well.

Sports & Entertainment? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Let’s look at CAA’s basketball division, first.  Before hiring Henry Thomas, CAA already boasted three strong basketball agents: Leon Rose, Andre Buck, and Steven Heumann.  Heumann mostly deals with the high profile overseas players and those born outside of the U.S. who now play in the NBA (think Omri Casspi).  Andre Buck is up-and-coming, and serves as the primary agent for guys like Jason Thompson, Aaron Brooks, and Renaldo Balkman.  Then there is Leon Rose, who has LeBron James, O.J. Mayo, Jonny Flynn, Allen Iverson, Richard Hamilton…the list goes on.  The key thing that I notice with Henry Thomas’s arrival is that LBJ and D-Wade are now under the same roof.  The two most marketable basketball players (you can throw Dwight Howard in at #3 in my book) are at CAA.  Interestingly, though, LBJ has his own marketing company, so CAA, the sports marketing juggernaut, does not reap rewards from that account.  D-Wade will bring in some nice profits, though.  He recently switched from repping Converse to the Jordan Brand (both owned by Nike).

In yesterday’s post, I alluded to Jason Belzer’s Sports Agency Power Rankings.  The list was created a year ago, and I think that he would agree with me that the pecking order should be changed.  I believe that the top 4 are now CAA, WMG, Octagon, and BEST.  WMG, Octagon, and BEST are not all that far from one another, but all 3 are a giant step below CAA, in my opinion.

A key question is: How does one compete?  One thing is sure, you are not going to beat CAA by playing its game.  The company does not have unlimited resources, but something close to it.  They have more connections to producers, directors, potential sponsors, etc, so you can’t out-promise Creative Artists Agency on providing more avenues outside of the field/court.  What you can beat CAA at (possibly) is personal care.  CAA is the largest sports agency in terms of quality of clients and track-record of agents, but they are not interested in players who are going to be taken Day 2 of the NFL Draft, beyond the 10th round of the MLB Rule 4 Draft, or un-drafted basketball players (for the most part).  In fact, even if you are a 2nd round NFL draft pick, do you want to be splitting time with Matt Stafford?  If you are a 4th round pick, will you get the same attention as Derek Jeter?  LeBron Jame and Dwayne Wade might get a few more phone calls then a 2nd round NBA draft pick.

A lot of athletes crave attention.  They also want someone that they can relate to.  Personal relationships mean a lot in this business.  Just because CAA is growing by the day and seems like it is a company that is beyond competition, does not mean that it is immune to losing some big potential clients to a boutique firm that knows what it is doing and can connect with the athletes.  Don’t fight CAA at its strengths, find out what your own strengths are and use those to impress future clients.

All of that being said, CAA sure got a lot stronger with its latest acquisition.

Is Creative Artists Agency Unstoppable? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

In many’s eyes, Albert Pujols is the best baseball player around and quite frankly, his numbers support that claim.  Pujols’ career statistics are superior  than many of the other players that hold down spots on the highest-paid list in the MLB; names such as Alex Rodriguez, Mark Teixeira, Manny Ramirez, Derek Jeter and Carlos Beltran.

Here is a list of these players and their current contracts:

• Alex Rodriguez – $238 million, 9 years
• Carlos Beltran – $119 million, 7 years
• Mark Teixeira – $108 million, 8 years
• Derek Jeter – 2009: $20 million, 2010: $21 million
• Manny Ramirez – 2009: $25 million, 2010: $20 million

Seeing as Albert Pujols’ career stats (.334, 40/122, 1.053) are better than A-Rod’s (.305, 42/122, .966), I think it is safe to say that Pujols should be a $200+ million man in the immediate future. Anything less would be tragedy!

Albert Pujols: Cash Flow Under-Achiever from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules