When I first heard that Francisco (K-Rod) Rodriguez was switching agents from Paul Kinzer of Wasserman Media Group to Scott Boras of Boras Corp., I praised Kinzer for a job well done in his representation of the former New York Mets closer.  After all, Kinzer helped Rodriguez negotiate a 3-year, $37 million deal, which included a very impressive $17.5 million for an additional year had Rodriguez closed 55 or more games this season.  But as of late, most people are talking about a mistake Kinzer may have made, which could have negatively affected his former client.

I linked to a HardballTalk article in last week’s Shabbat Shalom: Friday Wrap-Up, which brought up a New York Times report about Kinzer failing to submit Rodriguez’s no-trade list to the Mets prior to his trade to the Milwaukee Brewers.  Rodriguez could have provided a 10-team no-trade list roughly 2.5 years ago, but Sandy Alderson of the Mets stated that the organization never received said list from Major League Baseball and/or the MLBPA.  Further, Rodriguez seemed to be under the impression that the list was effective and that the Brewers were a team on that list.  And apparently, Alderson recently told Kinzer and Arn Tellem of Wasserman Media Group that the Mets never received the no-trade list.  Boras says that Alderson’s message was never relayed to Rodriguez.

Luckily for Rodriguez and Kinzer, the only reason Rodriguez had not wanted to go to the Brewers was because back in 2008, Trevor Hoffman had the closer position on lock.  Unfortunately for Kinzer, even if Rodriguez closes at least 55 games this season, he will not be earning any commission on the closer’s 2012 salary.

Late last week, K-Rod and Boras agreed to turn Rodriguez’s $17.5 million vesting option into a mutual option in exchange for changing K-Rod’s buyout from $3.5 million to $4 million.  It is almost certain that Rodriguez will in fact become a free agent next season at the ripe age of 29 and command a large multi-year deal based on his final numbers from this season and past seasons combined.  Scott Boras will negotiate that contract, which means Kinzer will take no part of it.

But maybe Kinzer should just be thankful that K-Rod ended up on a team that he no longer wanted on his no-trade list and that Boras was able to structure a deal with the Brewers that makes Rodriguez happy.  In a different situation, where K-Rod would have been traded to a team that he wanted on his original no-trade list and continued to want to block from attaining his services, he could have been taken the issue up with the MLBPA by filing a grievance.  David Waldstein of the New York Times thinks that Rodriguez may still argue for damages based on Kinzer’s alleged failure to submit a no-trade clause.  Waldstein states,

It could be argued, and most likely will be, that his rights under his original contract were compromised and he lost something of value.

I happen to believe that after Boras accomplished a re-structuring of Rodriguez’s deal, he will not suggest to his client that a grievance be filed for any damages resulting from Kinzer’s apparent lack of providing the no-trade list to the Mets.  Damages would be particularly hard to prove.

Navigating Francisco Rodriguez’s No-Trade Clause from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Sports agents talk to already represented players all the time, but rarely do such communications get covered by the media.  When Scott Boras is involved; however, the media takes note.

Recently, Ken Rosenthal of Fox Sports reported that New York Mets shortstop Jose Reyes is being courted by Boras.  Brian Costa of the Wall Street Journal Tweeted that Reyes has spoken to Boras on the phone, but said there is no chance he is leaving his current agent.  Reyes is represented by Peter Greenberg of Peter E. Greenberg & Associates.  Greenberg represents a lot of foreign born players, including Bobby Abreu, Johan Santana, Martin Prado, and Maicer Izturis.

According to the MLBPA Regulations Governing Player Agents (As Amended Effective October 1, 2010), Boras is permitted to have communication with non-client players so long as he provides written disclosure to the MLBPA of that communication.  The written disclosure must include the date, time, and specific location where the communication occurred or is expected to occur, and state whether the communication included or involved, or is expected to include or involve, any recruiting.

In the past, we have covered Rafael Soriano’s switch from Greenberg to Boras, along with Carlos Guillen leaving Greenberg in favor of Octagon.

Rumors Of Jose Reyes Considering Switch To Scott Boras from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

• It is not the Amateur Draft, also known as the Rule 4 Draft, where high school, junior college, and juniors/seniors in 4-year universities are selected in the 50 round draft.
• To be eligible to be drafted, a player must not be on the 40-man roster and must have been in the organization for 4 years if signed at 19-years-old or older, or 5 years if signed at 18-years-old or younger.
• Triple-A players selected must be added to that team’s 40-man roster and kept on that team’s 25-man roster (and active for at least 90 days) for at least one full season.  A team selecting a player must pay $50,000 that player’s former team a fee of $50,000.  This is known as the Major League Phase.
• That player may be waived by the new team.  If he clears waivers, the team that lost him in the Rule 5 draft has the option to take him back for a price of $25,000.
• Double-A players (or lower level) may be selected to play on a team’s Triple-A squad and Single-A players (or lower level) may be selected to play on a team’s Double-A squad.

The Rule 5 Draft is historically pitcher-heavy. Last year, 14 of the 17 players selected in the Major League Phase were pitchers; 8 were RHPs and 6 were LHPs.  15 of the 21 players taken in the Triple-A Phase were pitchers; 9 RHPs and 6 LHPs.  All 4 players selected in the Double-A Phase were RHPs.  The New York Mets and the Washington Nationals were very active in last year’s Rule 5 Draft.  The Mets selected 6 and the Nationals selected 4 of the 42 total players taken.

Before you go ahead and discount the value of the Rule 5 Draft, realize the the draft is responsible for formerly changing the teams for the following players: Josh Hamilton, Dan Uggla, Joakim Soria, Carlos Monasterios, Darren O’Day, Jose Bautista, and Jay Gibbons.

Here are the players that John Manuel of Baseball America is interested in leading up to this year’s Rule 5 Draft.  And here are some more players to read up on, presented by Bucs Dugout.

Warming Up For The 2010 Rule 5 Draft from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

1. Bryce Harper (Washington Nationals) – Boras Corp. – Interesting to note that Bud Selig referred to Harper as an outfielder even though he has played mostly catcher his entire life.  Get this kid on the fast track through the Minors.
2. Jameson Tallion (Pittsburgh Pirates) – Hendricks Sports Management – Big high school arm clocked as high as 99 mph.
3. Manny Machado (Baltimore Orioles) – Boras Corp. - Hard to see Machado passing up signing to go play at Florida International University.  Interesting that FIU is his college commitment.
4. Christian Colon (Kansas City Royals) – Boras Corp. – Yesterday, I had reported that the Royals wanted to sign Yasmani Grandal.  Perhaps his price tag was too high.
5. Drew Pomeranz (Cleveland Indians) - Beverly Hills Sports Council – He was drafted in the 12th round out of high school.
6. Barret Loux (Arizona Diamondbacks) – SFX – Jumped up boards a lot recently.
7. Matt Harvey (New York Mets) – Boras Corp. – 4th Boras client selected in the top 7 picks.
8. Delino Deshields Jr. (Houston Astros) – Wasserman Media Group
9. Karsten Whitson (San Diego Padres) - SFX – Committed to my alma mater, the University of Florida.
10. Michael Choice (Oakland Athletics) – Franklin-Frye Sports – Went undrafted out of high school.
11. Deck McGuire (Toronto Blue Jays) – SFX – Also undrafted out of high school.
12. Yasmani Grandal (Cincinnati Reds) – Legacy Sports Group – Slipped because of signability issues.
13. Chris Sale (Chicago White Sox) – Jet Sports Management – Didn’t play at a major school (Florida Gulf Coast University), but put up great numbers there and played very well in Cape Cod last summer.
14. Dylan Covey (Milwaukee Brewers) – Wasserman Media Group
15. Jake Skole (Texas Rangers) – Unknown – Won’t be compensated if they don’t sign this pick (most likely why Skole was taken here).
16. Hayden Simpson (Chicago Cubs) - Hendricks Sports Management – Great numbers this past year in Division II baseball.
17. Josh Sale (Tampa Bay Rays) – Creative Artists Agency – Don’t worry, different advisors than the people at CAA who have to worry about where LeBron will play.
18. Kaleb Cowart (Los Angeles Angels of Anaheim) – SFX – Boras Corp. has higher drafted clients, but at this point of the draft, SFX and Boras tied in number of players picked.
19. Michael Foltynewicz (Houston Astros) – Octagon
20. Kolbrin Vitek (Boston Red Sox) – Pro Star Management - Joe Bick also represents Kevin Youkilis, one of my favorite players.
21. Alex Wimmers (Minnesota Twins) – ACES – Undrafted out of high school.
22. Kellin Deglan (Texas Rangers) – Double Diamond Sports Management – Canadian catcher committed to Florida International University with Manny Machado.
23. Christian Yelich (Florida Marlins) – Creative Artists Agency – Committed to the University of Miami, so he will be in the state of Florida no matter what.
24. Gary Brown (San Francisco Giants) – Boras Corp. – And Boras re-gains the lead in clients selected with a total of 5 at this point.
25. Zack Cox (St. Louis Cardinals) – SFX – A draft-eligible sophomore.
26. Kyle Parker (Colorado Rockies) – Career Sports Entertainment – Also the quarterback for Clemson.  Will be a tough sign.
27. Jesse Biddle (Philadelphia Phillies) – Sosnick & Cobbe – Matt Sosnick represents some big time pitchers; add this stud to the list.
28. Zach Lee (Los Angeles Dodgers) – Unknown – Committed to play football at LSU. Queue the signability discussion.
29. Cam Bedrosian (Los Angeles Angels of Anaheim) – ACES
30. Chevez Clarke (Los Angeles Angels of Anaheim) – ACES – 2 ACES clients drafted in a row, and a total of 3 ACES clients taken in the first round.
31. Justin O’Connor (Tampa Bay Rays) – SFX – Committed to Arkansas.
32. Cito Culver (New York Yankees) – SFX

Comp Round A

1. Mike Kvasnicka (Houston Astros) – Sterling Sports Management
2. Aaron Sanchez (Toronto Blue Jays) – West Coast Sports
3. Matthew Lipka (Atlanta Braves) – Franklin-Frye Sports
4. Bryce Brentz (Boston Red Sox) – Jet Sports Management
5. Taylor Lindsey (Los Angeles Angels of Anaheim) – Unknown
6. Noah Syndergaard (Toronto Blue Jays) – Xclusive Sports Management
7. Anthony Ranaudo (Boston Red Sox) – Boras Corp.
8. Ryan Bolden (Los Angeles Angels of Anaheim) – ACES
9. Asher Wojciechowski (Toronto Blue Jays) - SFX
10. Drew Vettleson (Tampa Bay Rays) – Creative Artists Agency
11. Taijuan Walker (Seattle Mariners) – Reynolds Sports Management
12. Nick Castellanos (Detroit Tigers) – SportsMeter
13. Luke Jackson (Texas Rangers) – Unknown
14. Seth Blair (St. Louis Cardinals) – Boras Corp.
15. Peter Tago (Colorado Rockies) – Wasserman Media Group
16. Chance Ruffin (Detroit Tigers) – Unknown
17. Mike Olt (Texas Rangers) – Wasserman Media Group
18. Tyrell Jenkins (St. Louis Cardinals) – Select Sports Group

The MLB Draft Day 1 Broken Down from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

We had assumed that Johnny would be starting the year with the Triple-A Buffalo Bisons, but as Spring Training came to a close, he was instead assigned to the Double-A Binghamton Mets.  The Mets organization’s bullpen impressed a lot of people during Spring Training, and unfortunately for Johnny, he would have to start the year at the same level that he ended last season.  He would not be in Binghamton for long, though.

Last night, after striking out two batters and giving up no hits or walks in one inning of work, Johnny was told to pack his bags, because he was being promoted to Triple-A Buffalo.  With Binghamton, Johnny had a 2.89 ERA.  In 6 games and 9.1 innings, he had 2 saves, 11 strikeouts, and only 3 walks.

Binghamton’s manager, Tim Teufel, had this to say about Lujan:

“It’s a matter of stuff.  I don’t care how long you’ve been in the game, if you don’t have the stuff, you’re not going to get the ball in the later innings. But (Lujan) has been one of the better pitchers out of the pen.”

Johnny becomes the third Triple-A player represented by Dynasty Athlete Representation.  We wish Johnny the best in his new home and hope that he is called up to the big league sooner than later.

Johnny Lujan Promoted To Triple-A Buffalo from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Here is a little bit about Johnny Lujan’s past in MLB-affiliated baseball.  Lujan was selected by the Texas Rangers in the 15th round of the 2004 First-Year Player Draft.  In 2007, he move to the Chicago White Sox organization after being traded for catcher Chris Stewart.  He spent the past three years with the White Sox, but the Sox never protected Lujan by putting him on their 40-man roster.  Lujan was eligible in this past year’s Rule 5 Draft, and the New York Mets snagged him in the Triple A phase.  Johnny will be reporting to Major League Spring Training this weekend, a little bit late, due to the birth of his first child as mentioned above.  Without a doubt, though, he is ready to play, and he now has an extra incentive to make it up to the big leagues.

If Johnny can limit his walks and maintain his control on the mound, he will definitely be called up by the end of the year.  From 2008 to 2009, Lujan was able to increase his K/9, decrease his BB/9, and decrease his WHIP to a respectable 1.35.  I was shocked when I read that in 58.2 innings pitched, Lujan only gave up 1 homerun.  We are excited to represent our second player in the Mets organization, and one who is close to the big stage.

This will be the first player that Dynasty represents in conjunction with an outside entity.  Steve Weinberg, who has represented Johnny Lujan in the past, will continue to serve as Johnny Lujan’s primary agent.

Johnny Lujan Becomes A Part Of Dynasty from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Jason Bay hit .267 with 36 home runs and 119 RBI in the 2009 season with the Boston Red Sox. On the back of this performance, Bay has earned himself a new contract with a new team.

This time, it’s a 4 year, $66 million contract with the New York Mets. This is not the final amount of the contract, however. A vesting option for a fifth year makes it possible for Bay to make $80 million over 5 years.

The Red Sox looked like they had no choice but to let Bay go since they spent about $100 million on Mike Cameron and John Lackey combined.

Argue with me all you’d like but a .267 batting average is not enough for me to give out that kind of money. Bay is a great player and will add a much needed spike to the Mets’ offense and defense, but it is tough to justify that price-tag.

Jason Bay Hits It Big With the Mets from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

As for the 2009 Meetings, the big event on the last day is always the Rule 5 Draft.  Quick bullet points to help explain the Rule 5 Draft:

• It is not the Amateur Draft, also known as the Rule 4 Draft, where high school, junior college, and juniors/seniors in 4-year universities are selected in the 50 round draft.
• To be eligible to be drafted a player must not be on the 40-man roster and must have been in the organization for 4 years if signed at 19-years-old or older, or 5 years if signed at 18-years-old or younger.
• Triple-A players selected must be added to that team’s 40-man roster and kept on that team’s 25-man roster (and active for at least 90 days) for at least one full season.  This is known as the Major League Phase.
• That player may be waived by the new team.  If he clears waivers, the team that lost him in the Rule 5 draft has the option to take him back.
• Double-A players (or lower level) may be selected to play on a team’s Triple-A squad and Single-A players (or lower level) may be selected to play on a team’s Double-A squad.

This year’s Rule 5 Draft was pitcher-heavy.  Of the 17 players selected in the Major League Phase, 14 were pitchers (8 RHPs and 6 LHPs).  15 of the 21 players taken in the Triple-A Phase were pitchers (9 RHPs and 6 LHPs).  All 4 players grabbed in the Double-A Phase were RHPs.  Teams need pitching!  They should take a look at my company’s arsenal of arms.  Speaking of which, one of the pitchers selected in the Triple-A Phase may soon be joining the Dynasty family.  If it happens, we will announce it here.

The New York Mets were extremely active during the Rule 5 Draft.  They took Carlos Monasterios from the Phillies organization in the Major League Phase and followed up that pick by taking three more pitchers and a first-baseman in the Triple-A Phase.  They also took an RHP in the Double-A Phase.  This tells me that they were not too happy with the state of their farm system.  Out of 42 players selected in the draft, the Mets grabbed 6 of them.  Before you read too much into that statement, make note that Monasterios has already been shipped to the Dodgers.

The Nationals were also very active; the team added 4 new players to its organization.  They got a couple of pitchers and a couple of outfielders (including the #1 overall pick of the Major League Phase – Jamie Hoffmann).  That said, the Nationals also lost 4 non-protected players to other teams in the draft.

Want to see how your team/players fared?  Here is the list of all players taken in the draft.

The Rule 5 Draft That Closed Out Last Week’s Winter Meetings from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Basically, the Mets re-structured Blanco’s deal so that he would be able to earn most of that money plus some added cash, all in the form of bonuses.

Blanco’s base salary dropped to $750,000, but he is able to earn $775,000 in bonuses. When all is said and done, Blanco can earn $1,525,000 this upcoming season (if he stays healthy).

I think this was a solid move for the Mets. Blanco can earn an additional $75k with this new deal, but I think that insurance premium is well worth it.

Shoulder Concerns Spark Re-Structuring for Blanco from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Since free agency began in the 1970′s, the trend for rising contracts has skyrocketed.  In addition, there has been a continuous push towards defining sports as big business.  Just think about the deals we’ve witnessed in this past year.  C.C. Sabathia signed a 7-year, $161 million contract with the New York Yankees, who also opened their new $1.5 billion stadium in the Bronx.  This latter fact wouldn’t be as disheartening, until you remember that the New York taxpayers are picking up the tab during one of the worst recessions in American history.  A year ago we saw the Dolphins give their #1 draft pick Jake Long a 5-year, $57.75 million contract.  A player who had never stepped foot on a pro field became the highest paid offensive linemen in the NFL.  No need for more examples of the huge deals that have already been made amidst this economic crisis.

So where does this bring us?  What’s the state of affairs now?  Both the New York Yankees and the New York Mets overestimated their ability to sell high-priced seats in the newly christened Yankee Stadium and Citi Field.  Keep in mind that some of the seats in the New Yankee Stadium exceed $2,500, so who’s surprised that they aren’t filled for every game?  Both owners have now decided that they will review their ticket prices and possibly make changes.  Likewise, ticket sales are down in many places, and many teams are coming up with new, creative ways to sell seats.  The Detroit Pistons are clearly feeling the wrath of the economy, as they struggled to sell tickets for Friday night’s playoff game against the Cleveland Cavaliers.  Tickets were found on Stubhub for as low as $11, and the team’s front office even sent e-mails to Cavs season ticket holders offering tickets to those who want to make the 4 hour drive.  But the business of sports is not in a complete decline; in fact, it’s becoming increasingly impossible to make a general statement about the effect of this economic downturn on the industry.  Don Garber, MLS commissioner, said that the league’s law firm had canceled its season tickets at Yankee Stadium.  However, the large sports law firm Proskaeur Rose actually upgraded from a 20-game package to a full season ticket package in the new stadium.  Furthermore, while the housing construction industry may be in utter disarray, the Florida Marlins plan for a new $600 million stadium was just approved.

And what about the players that make these games possible?  The week leading up to this past weekend’s NFL draft hasn’t shown us that spending is down.  The Detroit Lions and the agents for Georgia QB Matthew Stafford were in talks all week to reach a deal before the draft.  Stafford was inked to a 6-year $72 million ($47 million guaranteed) which greatly exceeds Jake Long’s contract.  So the money may be getting out of hand, especially considering we are in an economic crisis.  As a future agent, these probably aren’t the words I should be saying, but it’s probably true.  But where do we place the blame?  Jeff MacGregor, senior writer for ESPN.com and ESPN the Magazine, infers that the fans are just as, if not more, responsible than those within the industry:

“Most of the men and women I’ve met over the years in professional sports would gladly go on playing their games for much less than they’re being paid now…Rather it is the market, reflecting the madness of the individuals who constitute it, that determines the relative value of that calling, whether to be a linebacker or golfer or shortstop. The athlete (and the agent and the owner) just operate within the market we allow them to create.”

At least we know that many players will take less money if the economy forces teams to do so, but probably not without a fight.  We have seen previous examples of extremely unselfish players who opted for lower contracts, despite the current trend for ever-increasing contracts.  Before the 2007 NBA season, Tim Duncan took less money so that the Spurs could create a winning team.  So maybe there’s some hope.  At least we can sleep knowing that not all athletes are only in it for the money.  For most great athletes, it’s about the game…they’ve already made enough money.  As fans we should feel lucky that it hasn’t reached the point where the money is the only factor for most players.  Imagine if the USA basketball team had to revert to using college players for the next Olympics competition.  As for sports in general, this industry may be feeling the effects of the economic crisis, but you can count on it returning to its normal form when the economy rebounds.  The Yankees will continue spending, the Marlins will still probably offer two-fer ticket deals in their new stadium, and most fans will watch ESPN waiting to hear about that next big contract with a mixed response of amazement, excitement, and disgust.  Hopefully I will be negotiating it.

“This is the Business We Chose” from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules