Rookie holdouts are nothing new to the sports world. Every year we see a few or more rookies being advised by their agent/advisor to hold out of camp until a fair contract is signed. Before I jump to support any side, I’d like to present some important points-of-view.

From the athlete side: Professional sports are not just a game, but a business, too. Just like a worker wants his fair pay before starting a new job, so too does the athlete.

From the team/fans side: Although it is a business as well as a game, holding out of camp will pose a threat to the success of the athlete’s career; it will be like starting school late and missing tons of work and valuable information.

USA Today posted a great article about all of the remaining rookie holdouts and how their absence hurts them and the team. Here are those players:

• Aaron Curry, LB, Seattle Seahawks (4th overall pick)

• Andre Smith, T, Cincinnati Bengals (6th overall pick)

• Eugene Monroe, T, Jacksonville Jaguars (8th overall pick)

• B.J. Raji, DL, Green Bay Packers (9th overall pick)

• Michael Crabtree, WR, San Francisco 49ers (10th overall pick)

• Aaron Maybin, DE, Buffalo Bills (11th overall pick)

• Malcolm Jenkins, DB, New Orleans Saints (14th overall pick)

As we have all seen in the past, some “holdout” rookies have had tougher times getting starting jobs, playing to their best ability, and overall adapting to the fast-paced National Football League.

• JaMarcus Russell, one of the most hyped quarterbacks in recent years, was drafted 1st overall and has only played 19 games in his three year professional career. (Russell held out)
• Brady Quinn was drafted in the first round of his draft and has only played in 4 games in his three years in the NFL. (Quinn held out)
• Matt Ryan was drafted 3rd overall in the ‘08 NFL Draft and DID NOT hold out. He started 16 games in 2008 and has become one of the most successful quarterbacks in the NFL.
• Joe Flacco was drafted 18th overall in ‘08 and DID NOT hold out. Flacco also started 16 games in 2008 and has given the Baltimore Ravens great success on the field.

Now, I ask the players: Is taking a risk of not starting at all or being sub-par worth the money? Yes, you will be getting paid a lot of money to sit on the bench, but it will hit you in 5-6 years when your rookie contract is up and it is time to sign a new one. You will not be seeing those same dollars.

Apparently there is a big battle between Athletes First and CAA, and both firms are waiting to see what Eugene Parker does with Michael Crabtree’s contract (pick #10).  The agencies with first round picks should be careful not to extend this process too long.  It is okay when a few players hold out of camp, but if practically the entire first round of picks is sitting on the sidelines, we will start hearing more cries for a slotting system like the NBA uses on first round picks.  And NBA agents often do not take a cut on the first contracts of first round picks.  NFL agents would lose a lot of sleep over that idea.

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.

Yesterday, Shonn Greene signed a 4-year deal with the New York Jets.  I am not a Jets fan and never followed the former Iowa RB closely, so why am I even bringing this up?  It’s because I also happened to come across an excellent post yesterday, concerning the structuring of NFL player contracts for those selected in Day 2 of the draft (rounds 3-7).  Shonn fits that category, as he was selected in the 3rd round of the 2009 NFL Draft, even though many expected the Doak Award Award winner to be off the boards a day earlier.

Anyway, Greene’s 4-year deal is unsurprising.  According to J.I. Halsell, who wrote the post linked to above, the Jets are one of twenty-five NFL teams who give their Day 2 draftees 4-year contracts.  The other seven teams, offer their Day 2 draft picks 3-year contracts.  It’s good to know which teams offer which types of contracts if you plan on representing any players who have a chance of going rounds 3-7.  Halsell notes the following teams as being the 3-year offerors: Arizona, Baltimore, Detroit, Kansas City, New Orleans, Pittsburgh, and Saint Louis.

Halsell goes on to talk about salary escalators in the last year of rookie contracts, and how they differ depending on if it is a 3-year or 4-year contract.  This is an area where the agent and team can negotiate terms.  Keep these things in mind as you start to see more and more Day 2 players signed to their respective teams.

Before Bowl season, he was listed as the best Offensive Lineman going into the 2009 NFL Draft.  Then he was banned from playing in the Sugar Bowl for apparently having dealing with an agent (which is a big no-no when you are a collegiate athlete).  Even though Smith was suspended from what would probably have been the most important single game of his young career, no one thought that it would take any toll on his draft stock.

The winner of the Andre Smith sweepstakes was Alvin Keels and Global Management Group.  Many rumors had been circulating that Todd France and FAAM were the favorites, but Keels came out on top.  For the time being.  I doubt that Keels knew what he was getting into when the talented O-Lineman signed with his company.  Andre Smith ended up showing at the NFL Combine unfit to perform, refused to participate, and then fled the scene.  To make matters worse, the picture above came out and the press was eating it up.

Then Smith scored a 17 on his Wonderlic Test.  And then, with only days remaining before the NFL Draft, Smith dropped Keels in favor of Priority Sports.  Somehow, some way, Smith was a top 10 pick.  His thanks to Priority Sports was a big middle finger.  Yesterday, Jim Trotter of SI.com reported that Smith dropped Priority Sports and guess who Smith is apparently going to hire to fill the void…Alvin Keels.

This is what Keels had to say in response:

“I haven’t been rehired yet,” Keels told us via e-mail.  “Honestly, I might not get him back.  If I do get him back it definitely wasn’t planned that he fire then rehire me.”

But who fires an agent only to re-hire him later? Oh wait, apparently Jeremy Shockey is in the midst of doing the same thing with Rosenhaus Sports Representation as we speak.

Interestingly, Neil Stratton of InsideTheLeague.com reports that even before Smith first hired Keels, he was with DeBartolo Sports.  That means that once Smith officially signs with a new agent (or a new agent who also happens to be a former agent), it will be the fourth time he has signed on the dotted line.  Andre Smith has still not taken a snap in a professional game.

Rulon Davis is one of the many players who accepted an offer from an NFL team at the conclusion of the draft.  He signed with the Denver Broncos and has received excellent reviews by many who have seen him perform with the team thus far.  Andrew Johnson decided to join the Cleveland Browns in their minicamp on a tryout basis.  Many players and their agents are working the phone lines and communicating with team personnel well in advance of the naming of Mr. Irrelevant.  And many of the UFA (undrafted free agent) deals are signed within a couple of hours of the last name being called.

New Orleans Saints coach, Sean Payton, recently talked in depth about the process of signing UFAs.

“It’s like you have two hours where with recruiting there’s a time frame that exists for months where you can build up a relationship with a player and a coach and a family member,” Payton said.  “But when the draft ends, you’re really selling on the phone for two hours.

“Hopefully you’ve been able to make contact with a scout, maybe a prior phone call to build a relationship so when that time comes there is some familiarity with a scout or coach to bring the player to the forefront. . . .  It’s a very similar process throughout the league.  Once the draft is winding down, you’re looking at your board and getting on the phone and trying to make sure that you’re answering all of their questions.  The challenge is that the agent and the player are getting calls from five or six different teams and the challenge is making sure that that’s organized.”

“Some team might decide to pay a player $15,000 as a bonus as opposed to $5,000 and that might sway a player,” Payton said.  “The one thing I do think, though — and the agents have done a good job with this — is that they have studied closely the depth charts and tried to find the best place for their client.

“The additional five, six or seven thousand dollars really is not going to offset the opportunity to make a roster.  You’ve heard me talk about our experience in Dallas with Tony Romo, after the draft as a free agent when he had eight or nine teams calling and he took less money to come to Dallas.  I think the decision was good on his part because he looked closely at the depth chart and felt like that was a place where he had a chance to make the team.”

You all saw last year as Michigan offensive tackle Jake Long signed a 5-year, $57.75 million deal prior to the 2008 NFL Draft. Well, when Georgia quarterback Matthew Stafford was signed early this past weekend, I wasn’t shocked. Stafford was signed to a 6-year, $72 million contract. Rather than bore you with the always-available aspects of Stafford’s deal, I will compare this contract to those of first chosen quarterbacks of the past.

2009: Matthew Stafford – 6 years, $72 million

2008: QB not drafted 1st overall

2007: JaMarcus Russell – 6 years, $61 million

2006: QB not drafted 1st overall

2005: Alex Smith – 6 years, $49.5 million

2004: Eli Manning – 6 years, $45-54 million (the amount varies based on incentive achievement)

2003: Carson Palmer – 7 years, $49 million

2002: David Carr – 7 years, $46.2 million

2001: Michael Vick – 6 years, $62 million

2000: QB not drafted 1st overall

**Matt Ryan, although not chosen 1st overall, received a 6 year, $72 million contract (Ryan was drafted third overall)

It is not difficult to notice the magnitude of change in the contract amounts of quarterbacks from 2007-2009. Bad agents, lack of collegiate skill and other intangibles are often tossed around by fans as reasons why contracts from 2007 and below are lower than those of the present. I, however, am a firm believer of trending salaries. Precedents are set each year for next year’s top pick. Talk about “keeping up with the Jones’s.”

• Drew Rosenhaus did not have a single player taken in the first-round of this draft (he does represent the first pick of the 2nd round, Louis Delmas).  When’s the last time there was a Rosenhaus-free first round?  I’m sure he kept himself very busy during the first-round, anyway.
• Michael Mitchell, the biggest surprise of Day 1, who was drafted by the Oakland Raiders in the 2nd round when many believed he would still be available in the 7th, is represented by Brian Hamilton of Plan B Sports Management, Inc.  Mitchell was the first non-Combine invite to be taken in the draft.  Hamilton only represents one other player in the NFL: Jacques Reeves of the Houston Texans.  I can’t find a website for Plan B, but I did find Hamilton’s YouTube account.
• As reported yesterday, CAA had 9 clients selected in the first 19 picks of the draft.  Interestingly, the company only had 3 clients taken in the next 81 picks (Laurinaitis, Britton, and Chase Coffman).

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.