Five years have passed, and according to multiple reports, it appears that Gus Dominguez is back to representing baseball players.  His name has been attached to Garcia Speck, a lefthanded pitcher who, not surprisingly, defected from Cuba, and is looked upon as a very intriguing prospect.  Speck was formerly represented by Carlos Perez and Lazaro Collazo of Miami Sports Consulting.  BaseballAmerica reports that Dominguez also represents two players who were selected in the 2011 MLB Draft – Yordanys Perez (taken in the 28th round by the Cincinnati Reds) and Alfredo Unzue (taken in the 35th round by the Oakland Athletics).

According to the BaseballAmerica article, Dominguez said he is working as a “consultant” for a new Los Angeles agency, but can it really be distinguished from representation?  In fact, BaseballAmerica even states that Dominguez “represents” Perez and Unzue.  If/when Dominguez applies for MLBPA certification as a Player Agent, it will be interesting to see the MLBPA’s response.  According to Section 4(M) of the MLBPA Regulations Governing Player Agents (As Amended Effective October 1, 2010), the MLBPA may deny certification as a Player Agent to any applicant, or may impose limits or conditions on the certification granted to any applicant on certain grounds.  Of note is Section 4(M)(9).

One does not need to be a licensed Player Agent to advise players for the MLB Draft; however, if Dominguez hopes to represent players when they are added to their teams’ 40-man rosters, he will have to be cleared by the MLBPA.  As of now, there is no indication to believe the MLBPA will rule a certain way with respect to this matter.

Gus Dominguez Out Of Jail, Working With MLB Players from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Major League Baseball stars Andrew Bailey, Dallas Braden, Craig Breslow, Cameron Maybin, Cody Ross, and Dontrelle Willis are expected to be bartending.  American Junkie will donate 10% of all bar revenue for the night, as well as 20% of all pre-booked tables to Strike 3 Foundation.  Additionally, VIP tickets will be available for purchase at the door on the evening of the 23rd for $50 per person.  VIP ticket purchasers are entered into a drawing for four spring training tickets when the A’s take on the Diamondbacks on Thursday the 24th at Salt River Fields.

This looks like a great event that all sports agents who happen to be in Arizona visiting their clients in Spring Training should attend.  Furthermore, agents should encourage their clients in the Cactus League to take part and help raise funds for pediatric cancer research.

MLB Players Bartending To Raise Funds For Pediatric Cancer Research from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

College baseball season officially began this month, which means it is not too early to start talking about who current college baseball players have chosen as their advisors for the upcoming 2011 MLB First-Year Player Draft.

Most MLB Mock Drafts (there are not nearly as many on the internet as what exists for the NFL, followed by the NBA) have the Pittsburgh Pirates selecting Rice University third baseman Anthony Rendon.  Scouts are obsessed with his plate presence more than his skill on defense, although it is not as if he is a below average third baseman.  Rendon has also caught the eye of super-agent Scott Boras, who Rendon has tapped to be his advisor leading up to the 2011 Draft.  If Rendon is selected #1 overall, it will be the third consecutive year that Boras advises the 1st selection of the Draft.

The last time the Pirates negotiated with a top Boras advised MLB Draft pick was in 2008 when the Pirates selected Pedro Alvarez 2nd overall.  Alvarez negotiated (with Boras’ help) a $6 million bonus, but Boras, apparently upset with the deal, notified the MLB Players Association that the $6 million deal was actually signed 45 minutes after the signing deadline, thus violating the rule and voiding the Alvarez contract.  Alvarez ended up sitting out the remainder of his Rookie Ball campaign once the MLBPA filed a grievance against Major League Baseball.  The Pirates folded under pressure and ended up signing Alvarez to a 4-year, major league contract with a $6.355 million bonus.

That incident might be in the back of the Pirates executives minds come draft day.

Scott Boras Is Advising Future Potential #1 Overall Draft Pick, Anthony Rendon from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

The Chicago White Sox signed their 3 players:

• John Danks signed a 1-year, $6,000,000 deal.
• Tony Pena signed a 1-year, $1,600,000 deal.
• Carlos Quentin signed a 1-year, $5,050,000 deal.

The Florida Marlins signed their 6 players:

• Burke Badenhop signed a 1-year, $750,000 deal.
• Clay Hensley signed a 1-year, $1,400,000 deal.
• Edward Mujica signed a 1-year, $800,000 deal.
• Ricky Nolasco signed a 3-year, $26,500,000 deal.
• Leo Nunez signed a 1-year, $3,650,000 deal.
• Anibal Sanchez signed a 1-year, $3,700,000 deal.

The Tampa Bay Rays signed their 3 players:

• Dan Johnson signed a 1-year, $1,000,000 deal.
• Andy Sonnanstine signed a 1-year, $912,500 deal.
• B.J. Upton signed a 1-year, $4,825,000 deal.

Does this tell us that the file-and-trial strategy is an excellent deterrent to drawn out negotiations between team and player?  There are still plenty of teams and agents who will negotiate right up to the day of players’ scheduled arbitration hearings.  The White Sox, Marlins, and Rays do not have to spend resources and time building up their cases in anticipation of a hearing.  My most recent count tells me that over 30 players are currently headed on the path towards a hearing.  While we know that a majority of these cases will settle, time is money!

My guy to watch = Josh Hamilton.  His salary figure is $12,000,000.  The Texas Rangers submitted a figure of $8,700,000.  Since Major League Baseball uses a final offer arbitration system, should the case go to a hearing, the arbitrators would have to pick one number or the other – no middle ground.

The File-And-Trial Arbitration Teams Sign Their Players from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

The MLB players union wants to start penalizing certified agents that violate their non-compete and non-solicitation agreements with their former employers.  Everyone remembers the scene from Jerry Maguire where Tom Cruise and Jay Mohr hit the phones to entice Maguire’s clients to stay at Maguire’s former employer, or join Maguire at his new start up agency.  The MLBPA may implement new measures with the intention that such a scenario would no longer be in a issue in baseball player representation.

The proposed rule change would allow agent employment contracts to contain a one-year no-solicitation clause, and a one-year no-competition clause.  Remedies proposed for agents who breach these contract clauses include a 50 percent fee split between the agent and his former employer, and an option for the players association to impose disciplinary action on the agent.

Central oversight by the players association will help create a more even level playing field for agents.  Currently agencies only have state contract law as recourse against employees leaving with clients, and some states, like California, do not recognize non-compete and non-solicitation clauses in contracts.

Want to Go Out on Your Own?…Then Start From Scratch from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Major League Baseball is very reluctant to change.  That was evident when Armando Galarraga deserved a Perfect Game, but was robbed by a bad call made by the first-base umpire, which could have been corrected, had the MLB instituted a replay system.  Even since that error, it seems as though instant replay is still far from certain to be implemented in America’s Past Time.

Along with a hesitance to change stemming on the owners/execs side is the fact that changes that they do wish to bring about are often disputed by the strong MLB Players Association.  The MLBPA is not a pushover, whatsoever, and there may be factions within the MLBPA that are not interested in bringing about any changes at all to the MLB Rule 4 Draft.  With signing bonuses likely to be at all time highs (we will not know the actual numbers until the August signing deadline), this is understandable.  There is no way that the MLBPA would be interested in a slotting system.  But what about teams possibly having the right to trade picks?

The NBA and NFL allows its teams to trade picks prior to the teams actually submitting their picks.  The MLB stands alone in preventing that from occurring within its league, and actually continues to prevent teams from trading the players they select until 1 year after those players are drafted.  This forces a team like the Toronto Blue Jays to select a kid like Noah Syndergaard with the 6th pick in Comp Round A.  I have been told that Syndergaard signed for $600,000, which is roughly $300,000 under slot.  No one that I know projected the player to go that high, and Toronto probably figured they could get away spending much less on him than they would with another player that they would have rather taken at that position.  A team like Toronto, with 10 picks in the first 4 rounds, could have traded some picks to a team that needed more picks, in return for an option to move up, not break the bank on multiple high picks, and get someone that they wanted a lot.

It may not dramatically affect negotiations between players selected and the teams that select them.  After all, a lot of the signability concerns are hammered out prior to a player hearing his name called on the conference call (or now on MLB Network on Day 1).  However, perhaps a system that allows for trades will create signing bonus round charts that look more consistent – where the best players are taken at the top and paid by the teams that really want them.

I’m not even sure where I stand on the whole idea, but I think it would be an interesting experiment.

An MLB Where Draft Picks Could Be Traded from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

In 2008, 24 players were offered arbitration.  This year’s landscape is quite similar, with 23 players receiving offers.  10 of the players are Type A free agents and 13 are Type B.

Ed Price of AOL Fanhouse describes what the Type distinctions mean in a succinct manner.

If a team signs a Type A free agent, its first-round pick goes to the former team — unless that pick is in the top 15, in which case a second-round pick goes to the former team. The former team also gets an extra pick between the first and second rounds.

If a team loses a Type B free agent, it gets an extra “sandwich” pick.

One more thing to add: The team that signs a Type B free agent does not lose a pick, whereas if that same team signed a Type A free agent, the team would lose a pick as stated above.

Twenty Three MLB Players Receive Offers Of Arbitration from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

I have a client/friend who was drafted out of high school in the 2006 draft by Tampa Bay. He turned down their offer a has just finished two years at Junior College racking up a National Championship and a MVP award for the entire country. He held the number once spot on the rotation at his junior college, the number 2 pitcher drafted this past year in the 3^rd round and signed. This coming fall he is enrolled at an NAIA School and his goal is to finish a year there then enter the draft that spring. My question for you is what would be a reasonable expectation for a draft round? I know this would largely depend on his performance this coming year, but I would love some insight.

-Adam Stowe

Adam,

Stats end up often being fairly insignificant when trying to gauge amateur draft positioning.  Many JC and college teams have starters who are great college players and go undrafted, while I’ve heard of guys pitching less than 20 innings in a draft year, and still going in the first three rounds. (injury, off-field issues, etc.) The best barometer tends to be how many cross-checkers/scouting directors are showing up at your client’s games.  The fact that he went undrafted after being the #1 starter on a National Championship team is probably not a great sign, but each situation is different.  Make sure that he is clearly conveying his desire to play pro ball to scouts, as it can only help his stock.

I am currently a first year law student at John Marshall Law School in Chicago, and am attempting to pursue a career in athlete representation. I work as a paralegal in a medical malpractice defense currently, but played baseball in college.  Do you have any advice regarding the best and most efficient ways to make contacts with people in the business, other than knowing a player or agent already? One of my best friends plays for the Delmarva Shorebirds right now in the Orioles organization, and another plays for an independent league team here in Illinois, the Rockford Riverhawks, but I was just wondering if you encourage people to go to symposiums and conferences around the country (especially considering I am a 23 year old law school student with limited funds!)? Also, did you do any internships for sports teams or other agencies before becoming certified? Is that something you look for when hiring potential agents or lawyers? Thank you for taking time out of your busy schedule to answer these questions and help out in any way, it is greatly appreciated. I look forward to receiving your answers.

-Christopher T. Scolire

Christopher,

I lucked into a client who was playing in AAA, as I had a connection with his family.  I’ve often been asked the best way to break into the business, and it really is as much of a mystery to me now as it was twelve years ago, when I got started.  You have two things that play very strongly in your favor…the fact that you have played in college will give you a good common bond while recruiting in homes, which was something that I lacked when I was starting out.  Going to law school is also essential, as it really separates you from the field in such a competitive industry.  When we look to make a hire, we don’t consider applicants unless they either went to law school or played baseball professionally.  Paul and I made a number of bad hires over the years, and have found that these two things, while not a sure sign of success by any means, is at least a start in the right direction.  If we are hiring ex-players, they are always guys that we have represented.  After spending time with a person for many years, it’s a lot easier to have a grasp on how his personality will play as an agent.  Jon Pridie works with us, and does a great job.  He has been one of my best friends for years, and our personal relationship was the basis for us working together.  I understood his work ethic and personality traits well before he came to work with us.

I did not intern or work for another company before I started in this business.  I attribute whatever success Paul and I have to an incredible amount of hours worked, and a very significant amount of luck.  We are good agents, but there are a lot of good agents.  I didn’t marry until this last year, and work was a large part of why I was single until 39.  Most well adjusted woman are looking for a husband who works less than seven days a week, and that is really reasonable.  I was able to take a small step back over the last couple of years, but only after we had a healthy business base, which took more than ten years to grow.

Any baseball conferences you can attend can only help.  I have heard that people who start on the team side have been able to make forays into the agent business with added credibility.  In the past, I’ve been hesitant to advise people to go full force into this business, as the success rate is so low.  But given the fact that Paul and  I now have a viable, sustainable business, I also understand that if it worked out for two bums like us, it can work out for anyone.  Use your connections with players as a way to meet other players.  The vast majority of pro clients that we add are done so through word of mouth.  Good luck!

When your establishing a new agency, do you recommend recruiting young rookies and helping develop them into professionals, or do you go straight after established professionals? What type of strategies did you use to sign your first established professional?

-Tristan Knell

Tristan,

Going after established MLB players is almost impossible, unless you have a preexisting relationship with the player.  Most players are not going to switch from an established agent to a new company, as it takes years for an agent to know the key employees (GMs, Scouting Directors) with teams, and to understand the endorsement side of the business.  It’s a huge risk for the player with much less downside than upside.

The main reason that I chose baseball is that I considered it almost an impossibility for me to break into football or basketball.  I rationalized that if I failed to get one of the 60 players chosen in the two rounds of the NBA draft (which was very likely) or one of the 270 players in the NFL draft, (now 210) my year of work could end up as a goose egg.  Baseball had so many rounds and so many players that I assumed that I could feel my way through the process with some of the 1300-1500 players that get drafted each year.  Having said that, my first 33 players never made it to the Major Leagues.  But at least it gave me a chance to break into the business.

Thanks again to Matt Sosnick for taking out the time to answer these questions in depth.  I asked Matt one final question that he was happy to answer.

Are there any MLB agents that stand out in your mind, for one reason or another?

The agents that stand out are the rare guys who really don’t steal other agent’s players, and seem to always do a really good job representing their own clients.   Steve Canter in L.A and Joe Bick in Ohio immediately come to mind.  Joe was one of the few guys who I felt comfortable calling for advice when I was first starting out.   Steve runs a really good business, and his players consistently sign strong deals.  Certainly two guys who are in it for their players first.

Best of luck to Matt’s clients in Spring Training and in the 2009 season.

Matt Sosnick Answers Your Questions from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

The Yankees, armed with a phenomenal pitching rotation, have spent $243.5 million on Sabathia and Burnett. Yankees GM Brian Cashman has reportedly made these deals after coming to the reality that the Yankees did not make the playoffs for the first time since ’93.

This past season with Toronto, Burnett went 18-10 with a 4.07 ERA.

Yankees Add Another Stripe from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Ibanez is the replacement for free-agent outfielder Pat Burrell who played an instrumental role in the Phillies World Series victory. Ibanez drew interest from many other clubs including the Angels, Cubs, Braves and the Mets. Ibanez became close to ex-Phillies GM Pat Gillick while he was in Seattle.

In 2008, Ibanez batted .293, hit 23 homers, batted in 110 runs; he had a .358 on-base percentage and a .472 slugging percentage.

Source: Philadelphia Phillies (http://philadelphia.phillies.mlb.com/news/article.jsp?ymd=20081212&content_id=3715027&vkey=news_phi&fext=.jsp&c_id=phi)

World Champs Sign Ibanez from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules