Sports Agents

• Bill Duffy gets on the Honorable Mention list [The top 25 Bay Area sports power players].

Baseball

• Interestingly structured contracts [Diamondbacks To Pay Bernard Gilkey Until 2017].
• Upper Deck can’t use team logos…going to be tricky to get around that [Topps Gets Exclusive Deal With Baseball, Landing a Blow to Upper Deck].
• 22nd rounder gets $990,000 signing bonus [Coffey Gets Unprecedented Deal].

Football

• Darren Rovell is not a fan of how Vick has treated the media post-jail time [Michael Vick’s Next Mistake: His Media Plan].
• Jerome Stanley is pissed [Agent points to Mangini for WR's injury].
• What problem would IMG have with the contract? [CAA and IMG squabble keeping Eli Manning from signing Giants contract].

Basketball

• Last year, 18 of the 60 NBA draftees spent time in the NBA D-League [Rookie Transition].

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.

Lottery picks are not stupid, and neither are their parents, AAU coaches, handlers, and whoever else might be involved in the agent selection process.  In most circumstances, agents for lottery picks do not make a dime off of the initial contract.  The first time they will make commission on a team deal will be in the second contract, which will be very lucrative for those rookies who outperform the competition.  If the contractual agent is not also acting as the marketing agent for the player, that means that the agent will be working pro bono for quite some time.  To make matters worse, other agents will be hawking at your lottery pick client nonstop.  If the client leaves you, you may lose quite a lot of money and time over this kid who was supposed to be “The One” to bring your agency to the top.

Recruiting money is never paid back, but often times, lottery picks will basically pay back the costs of workouts and travel expenses that the agent incurred in the pre-draft process.  You can call that a commission on the first contract, if you’d like.  Rovell is correct, most agents who represent lottery picks actually lose money…their hope is that long-term, these athletes end up paying for themselves and much more.

2008 Veteran Signings

• Bernard Berrian, WR, (Minnesota Vikings): Signed a 6-year, $43.4 million contract
• Derek Anderson, QB, (Cleveland Browns): Signed a 3-year, $24 million contract
• Ryan Grant, RB, (Green Bay Packers): Signed a 4-year, $20 million contract
• Michael Turner, RB, (Atlanta Falcons): Signed a 6-year, $34.5 million contract
• Flozell Adams, T, (Dallas Cowboys): Signed a 6-year, $43.8 million contract
• Asante Samuel, CB, (Philadelphia Eagles): Signed a 6-year, $57.14 million contract

2008 Rookie Signings

• Jake Long, OT, (Miami Dolphins, 1^st Overall Pick): Signed a 5-year, $57.75 million contract
• Chris Long, DE, (St. Louis Rams, 2^nd Overall Pick): Signed a 6-year, $60 million contract
• Matt Ryan, QB, (Atlanta Falcons, 3^rd Overall Pick): Signed a 6-year, $72 million contract
• Darren McFadden, RB, (Oakland Raiders, 4^th Overall Pick): Signed a 6-year, $60 million contract
• Glenn Dorsey, DT, (Kansas City Chiefs, 5^th Overall Pick): Signed a 5-year, $33 million contract
• Vernon Gholston, LB, (New York Jets, 6^th Overall Pick): Signed a 5-year, $32.5 million contract

After looking these contracts over, it is insanely hard to believe that Jake Long, an unproven NFL tackle is making more than Flozell Adams, a 4-time Pro Bowl veteran tackle. How is Darren McFadden making more than Ryan Grant and Michael Turner both of whom played excellent roles on their respective teams last year?

Seeing as the attendance of rookies at training camp is so vital to the success of the player, it pained some to see 2007 1^st overall draft pick JaMarcus Russell hold out of camp until September 12^th when Russell was signed to a 6-year, $61 million deal with $29 million guaranteed. One cannot help but wonder if the reason why rookies get paid so much up front is to prevent another “JaMarcus Russell hold out.” The NFL owners are not crying poor, so Goodell’s battle is not one of finances but one of fairness. Do not think for one minute that rookies believe that the amount of money being paid to them is sane. In an interview with Falcons quarterback Matt Ryan, he stated: “I’ll take it. I see both sides of the argument but I’m going to take the (current) argument now.”

A great point made by the late Gene Upshaw was that the rookie contracts only help those free agent veterans who are up for new contracts. What Mr. Upshaw means is that, for example, lets jump into the shoes of an 18-year-old girl who is negotiating with her parents about buying a car. The teen, so paradoxically calm, says: “But, Mom! Angie got a BMW and she’s only 16!” This is a perfect parallel to the situation in the NFL. Agents of veteran free agents can go to negotiations armed with the contracts of these rookies. Whew, no wonder why teams these days want to stay clear of early first round picks. As a future NFL agent, I cannot help but disagree with not being able to pay rookies these huge contracts.

Roger Goodell is not wasting any time on this matter so look to see some headlines fairly soon.

Although I understand the players’ demands and do not blame them for trying to get the money that they think they merit due to performance, $15,000 a day is a hefty price to pay to make a player’s voice be heard. There has to be a better way to deal with the problem of player compensation.

For Rookies

Institute a pay scale similar to the NBA’s system for incoming rookies. In this system, the salaries would be predetermined by the NFL and NFLPA. The first two years of the contract are guaranteed with a team option for the third and forth years, and it sets the price for a qualifying offer in the fifth year. I believe this is a fair system because usually after four years, a team can determine the development and the quality of the player it has drafted.

In cases where players break on to the scene with a great rookie season and have proved they can perform consistently at a high level with another good season (like Minnesota Vikings RB Adrian Peterson is poised to do), teams should add clauses to contracts where if certain performance levels are met, they will allow a contract renegotiation after the second or third year.

I believe that players who have not consistently proved that they can be top tier players should not receive top tier salaries like many rookies are demanding. Allowing teams to have an option on the third and forth years of the contract saves them from paying out huge, multiyear deals to first round players who bust. It also allows them to keep players who they believe are developing well on their teams. As I said earlier, I believe that the league should only allow contract re-negotiations in the first four years if a player meets performance clauses and proves he can consistently perform at a high level for multiple years that would warrant an extension.

For Veterans

I believe that every veteran player who has proved his worth to a team and shown he can be a productive contributor in the league should be rewarded in such a way. By instituting a pay scale for rookies, teams can make sure that they have enough cap space to compensate the players who have proved themselves, on and off the field, properly.

The same system should be used for veterans in the sense that teams should include clauses that after the first two years, and every year or two years after that depending on the length of the contract, if certain performance levels are met, the team will allow for a re-negotiation of the base/guaranteed salary and performance level incentives for the remainder of the contract, or a complete restructuring and extension of the contract. This again allows players who outperform expectations to re-negotiate their contracts for proper market value and protects teams from having to overpay for players who have not proven themselves worthy of premier contracts. Also for consideration could be a player option clause, where in the final few years of his deal, if a team wishes to pick up an option on a player, the player must also agree to the option or else he can become a restricted free agent.

—

I think a contract system like the one I described above could help end a lot of the training camp holdouts that we are seeing currently, especially on the rookie end. By getting these players off their couches and back onto the practice field, all parties involved benefit. I believe as agents, it’s our duty to make sure that we negotiate contracts that give our players flexibility and the ability to get what they are worth without having to damage their relationships with their teams by holding out.

Obviously there are always players whose values are difficult to gauge who might warrant a holdout, like the Chicago Bears’ Devin Hester. Yet overall I think this system would help keep team owners happy by protecting them from overpaying players who have not earned the salaries they are expecting, and gives players who have truly earned an extension and increase in salary through performance their dues.

Am I missing something? Is there something like this already in place I’m not aware of? Please leave your thoughts and comments below, The Sports Agent Blog Community would love to hear what you have to say on the topic. Thanks!

“The owners allowed the agents to beat their rear ends,” Mortensen said Wednesday on Mike and Mike In The Morning.  Mortensen went to proclaim, “The rookie salary cap issue is a brilliant public relations stunt by the NFL. It’s not like owners will take care of veterans if rookies had a cap. There’s $400M available now for that. Why should rookies like Jake Long and Matt Ryan be punished? Owners are asking to be saved because agents beat them in negotiations.”  He is clearly calling out the managers for starting this issue and helping it progress and only now complaining about it.

Chris later talks about how he believes these college players deserve the money they are making in the NFL because they proved their worth by playing and dominating college football.  He claims that because football is more physically demanding than basketball and baseball it forces the athletes to go through several years of college in preparation for the NFL.  NBA and MLB lottery picks usually do not stay in college for as long as the NFL’s top picks.

Although I see his logic, I believe that all sports are physically challenging in different ways and that the top picks in each sport have worked hard to reach the level they are at.  There is always going to be picks that do not pan out the way the teams hoped they would, but that is athletics.  If the kid is picked in the top five or ten in the draft and the team spends millions on him, you can bet that same team did their homework and knows everything about the kid, from his jump shot to his first kiss.  Or at least I’d hope they know a lot about the athlete they are drafting.

I believe that these athletes, even the one and done college players, deserve every penny that they are signing for.  These athletes have trained their entire life for this moment, and with one play can get injured and lose all that they have worked for.  The athletes deserve the guaranteed money in their contracts and some (like LeBron, Adrian Peterson and many others) have made a huge impact on their teams and actually deserve the large salaries they have received.

Although we watch these stars on T.V. and it may seem like only a game, this is their life and their jobs.  They have to support themselves and their families just like individuals who work in an office or teach at universities.   These athletes can only play their sports for so many years (10-15 at the most), unlike someone who can work as a teacher or businessman for 30-40 years, and as we know, these athletes often make poor financial decisions (Gambling With Your Career).  There are also many others looking to help these athletes lose their money effectively.  According to the Toronto Star, filing for bankruptcy is a tradition for NBA players, as 60% go broke five years after they retire.  This shows,that not only do these athletes need the money but also they need to find agents to help manage the millions that they are now earning.

I believe that rookie salaries are extremely high right now especially when compare them to the wages veterans who have played in the league and proved themselves for many years receive.  However, do not blame the rookies for having great “ambassadors of quam” to represent them.  Blame the managers and people in the front office for not paying you (veterans) higher salaries.  These veterans should talk to their agents and put pressure on them and the teams they represent.

The workout agreement, which is individually negotiated with the NFL club, provides that if the player sustains an injury in the minicamp he will be covered as if he was injured while performing under an NFL player contract, including the right to medical care and a salary guarantee for injury.

This makes common sense to me if you are a player who got selected in the first or second round and the team is committed to making you a part of its future. But what about an undrafted free agent who is just trying to get a look? In that case, he does not have any bargaining power and demanding a workout agreement may make a team hesitate in giving him a legitimate shot. Obviously, if you can get your rookie client into a minicamp with a workout agreement, you and your boy are better off. Always think about the worst possible scenario playing out and protect your client accordingly.