The Pittsburgh Pirates will have their hands full negotiating with Gerritt Cole.  In 2008, the Pirates had fun dealing with Pedro Alvarez, also a Boras client, who was selected #2 overall.  Initial reports indicated that the Pirates signed Alvarez for a $6 million bonus, but Boras claimed that Alvarez refused to sign the deal with the Pirates until 45 minutes after the signing deadline, which would have made the deal null and void.  The Major League Baseball Players Association looked into the matter and found that the rules were violated by the signing which apparently took place post-deadline.  Later, Alvarez agreed to a 4-year Major League deal with the Pirates that included a $6.355 million bonus.

Stories like this give us an idea of what it must be like to negotiate with Scott Boras, but nothing is as good as hearing it straight from someone who has a past of negotiating with the head of Boras Corp.  A few days ago, Jim Bowden provided everybody with a treat by going there – writing a breakdown of Boras’ negotiating style.  Bowden starts with the pre-draft process.

Boras will talk to all 30 scouting directors, general managers and owners (if they’ll take the phone call). He will give him his expectations for his client list — how he values them (not in terms of specific dollars but against previously signed talent) and reminds clubs that his player could re-enter the draft or go to college. If he’s talking with a small-market club whose history includes not paying over recommended slot, Boras might suggest that they pass on that player because he probably won’t sign with them and then will suggest maybe they draft one of his second-round type players in the first round because they could afford him. He also will look at an organization’s depth chart from the major leagues to the minor leagues. If a team has an All-Star catcher in the major leagues and a top catching prospect at Double-A, he might advise a team not to draft his catcher, realizing it might take his client longer to get to the major league team in that organization, thus delaying arbitration and free agency — where the real money is. He wants clubs to be prepared to pay the price if you draft one of his players.

It sounds like a very strong and effective strategy.  However, Bowden probably did not realize nor intend it when he wrote the piece for ESPN, but stating that Boras has direct communications with all 30 scouting directors, general managers and owners is the same as saying that Boras violates NCAA Bylaw 12.3.2.1 in the advising process for each of his clients.  NCAA Bylaw 12.3.2.1 reads as follows:

12.3.2.1 Presence of a Lawyer at Negotiations. A lawyer may not be present during discussions of a contract offer with a professional organization or have any direct contact (i.e., in person, by telephone or by mail) with a professional sports organization on behalf of the individual. A lawyer’s presence during such discussions is considered representation by an agent.

Boras advised former University of Kentucky baseball player James Paxton, who was suspended after he would not cooperate with NCAA investigators who wanted to question him about Boras supposedly having direct communication with a Blue Jays front office member after Paxton was drafted.  Between the Paxton controversy and Bowden’s piece, I assume the NCAA will be keeping a close eye on Boras Corp. employees.

NCAA Bylaws aside, the Bowden piece is a great read.  It includes Boras’ great leverage game, how he employs his own slotting system, and the record-breaking Boras draft deals he has negotiated.

Jim Bowden Discusses Boras’ Negotiating Power; Disregard For NCAA Rules? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

After that, I am drove back up to Harrisburg to watch Stephen Strasburg’s home opener on City Island. He is being incredibly hyped by the media and many think he should be down in Washington right now. However, he wasn’t exactly untouchable his first time on the mound this season.

On top of that, like Darren, I am finishing up law school. I only have 2 weeks left and I can’t wait. Three finals and 1 paper to go, and I’m finally done. I spent a majority of my spare time this week finishing the paper so I can concentrate on other things and not have that in the back of my mind. However, I did do quite a bit this past week with Dynasty.

First, I’ve been tracking our minor league clients daily. Most of them are off to a great season so far. Keep up the good work. In addition, I’ve been tracking and adding guys to our college player list. Most of those guys are also having great seasons. So it looks like the future is looking bright for Dynasty.

I also worked to ensure one of our clients had batting gloves from the company he is being sponsored by before he left on a road trip this week. He had run out of gloves and needed a pair for the trip. However, we did not want to just send him a pair that Darren had in his office due to the endorsement contract he signed with a equipment company. So I called the company and had them overnight a couple pair of gloves for him to begin his trip and they got their in time. Problem averted. We are also in the process of making sure he has new spikes coming to him as well. In addition, the bat he wanted did not comport with MiLB regulations. I contacted the company and had them discuss with our client what was acceptable to comply with the regulations. Hopefully he now can pick out a comfortable model and get his bats real soon.

My other major project this week included finding contact information for basketball teams in Central America. Some of the leagues were not hard to find. However, some of the smaller countries are less organized and obviously have less resources devoted to marketing and advertising. This made it a bit more difficult to find the contact information I needed. However, I did manage to find a large majority of the required information for the teams I needed. It just took a bit longer. It also required me reaching far back into my brain and remembering some of the Spanish I learned from taking 7 semesters of it in high school and college. Google Translator does work for some things, but not for others. For instance, if the site has Flash involved, none of the text in Flash will be translated. So having some background in Spanish made things go alittle quicker.

That about sums up my week. Until next time, have a great weekend.

An Intern(al) Look At Becoming A Sports Agent from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Former Athletes Premier International client and current Hendricks Sports Management client, Aroldis Chapman, threw a bullpen session last Wednesday in Houston. Fifteen teams attended. The teams in attendance were the Astros, Marlins, Angels, Nationals, Yankees, Red Sox, Orioles, Pirates, Reds, Royals, Phillies, Cubs, Mariners, Rangers, and Mets.

Chapman threw two five minute sessions, throwing mainly in the 92-93 mph range. The session clearly impressed the Marlins. They offered him a five year deal worth $13 million. The Red Sox reportedly offered Chapman three years and $15.5 million; however this offer was made before Chapman switched agents. His agents have also had recent talks with the Orioles organization.

The 21-year old Cuban left-hander can hit 100 m.p.h. on the radar gun and has thrown as high as 102 mph. In addition to the reportedly interested teams above, it is hard to imagine that any team wouldn’t want this guy. However, several questions surround this young, talented pitcher. The first is what type of pitcher will he be? Many clubs question whether he will be M.L.B. ready next year. Another big question surrounding Chapman is how much money will he command given the fact that he has yet to throw a pitch in the United States. An anonymous MLB executive felt Chapman would get a deal similar to the 4-year $15.1 million deal the National’s Stephen Strasburg signed. Another suggested the deal could go as high as $30 million.

It appears that Chapman may at least get the kind of money Strasburg received. In my mind, that amount of money would automatically cut the Reds, Pirates and Royals out of consideration. They are probably too small to commit that kind of money to an unproven kid. I would have thrown the Marlins in there as well. However, they may try to lure Chapman to South Florida for less money should he want to remain close to his native Cuba (although I do not think they will seriously remain contenders). The Phillies also do not seem be in contention to sign Chapman, as he likely will command more money than the club can commit after their offseason deals and strict $140 million payroll. The Nationals are also unlikely to offer that kind of money, now that they have signed Jason Marquis and are actively pursuing Matt Capps. The Orioles also recently signed left handed reliever Mike Gonzalez for two years and $12 million. The signing likely makes Chapman unaffordable to them as well. In addition, the Mariners have made several moves so far that likely put Chapman out of their league.

That leaves the normal big market clubs (Yankees, Red Sox, Mets, Angels and Cubs) as well as the Rangers and Astros. Out of these clubs, it is unlikely the Yankees will be willing to spend the amount that Chapman will command, with them looking to curb spending this year and still seeking a starter to add to their rotation. I believe that the Red Sox, Angels, Mets and Cubs could afford him. The Red Sox may win the Chapman sweepstakes if no other team is willing to beat their offer.

While it is completely up to Chapman where he goes, and he seems to have his choice of destinations, I believe that the Angels seem like the perfect choice. They are looking to make an offseason deal to counter those made by rival Seattle as well as to keep pace with Boston. They also appear to have the funds necessary to make such a deal. The questions would then remain as to whether the Angels want to take a chance on Chapman and whether Chapman would be willing to move to the West Coast.

My Aroldis Chapman Prediction from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Lately, there have been rumors that the NFL might get creative and impose a Rookie Wage Scale.  Would it look similar to the NBA’s Rookie Scale?  It looks like we will not know any time soon.  Apparently, the earliest that an NFL Rookie Wage Scale would be implemented (if ever) is 2012.  In the linked article, Chris Mortensen really shows what he thinks about athletes being able to make decisions for themselves.  He says,

“Do not listen to agents who are scaring you into a rookie wage scale or a rookie cap. . . .  Don’t let agents deceive you and lie about this rookie wage scale and rookie cap that would affect you into coming out early.”

In Mort’s world, there are no agents using Twitter or blogging to report on the article about there likely not being a Rookie Wage Scale either, right?

NFL Rookie Wage Scale On Hold from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

A young-adult receives many benefits from going to college.  The education attained from living on your own for the first time, sitting in on lectures taught by the best of their trades, drinking too much certain nights, etc. is tough to learn elsewhere.  However, for talented high school baseball players, college is an experience that may be put aside…at least for the time being.  If offered a signing bonus in the 6 to 7 figure range and the opportunity to live your dream by having a chance at an early start with an MLB affiliate, how do you say no?  It’s definitely tough to decline.  But what about giving up your senior year of high school?  No prom, no homecoming, no graduation with your best friends you have known your entire life.  Is it worth it?

Bryce Harper and his parents think so.  If you think Stephen Strasburg received a lot of hype leading up to the 2009 MLB Draft, you ain’t seen nothin yet.  Baseball columnists are already speculating what kind of bonus Harper will receive when he is selected #1 overall in the 2010 Draft.  That’s right…you can already pencil his name in…he is apparently THAT good.  But again, is it worth skipping senior year of HIGH SCHOOL to be the #1 overall pick in 2010 instead of the #1 overall pick in 2011?

While the Harpers think so, a man named Landon Powell disagrees.  And he knows best, because he missed the prom to start playing pro ball a year early.  Unfortunately for Landon, that did not work exactly according to plan.  While he did not end up signing with an MLB team until many years after making his decision, Harper will undoubtedly be picked #1 overall next year.  That being said, Landon still makes a good point.

“I was still young and not making my own decisions. My dad and Boras did, and my name was getting dragged through the mud. When you tell an 18-year-old kid, ‘If you do this, you’ll get paid millions,’ any 18-year-old kid will say, ‘Yeah, let’s do that.’ I had no idea what would hang with me my whole career. I get asked every year about weaseling my way through the draft.”

I just hope that Bryce has played this important decision out many times in his own head.  Landon also had Scott Boras as an agent and both Boras and his father were advocates for him leaving high school early.  Bryce will get paid millions.  I hope that in his mind, that is fair compensation for losing the last dance.

Bryce Harper Is Growing Up Real Fast from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Guess who represents #1, #2, and #3 overall.  Scott Boras.  John McGrath of the News Tribune thinks that at least Ackley might be hurting himself by holding out until the deadline.  He wrote,

Either way, Ackley’s fast track to the bigs is in peril of losing momentum. This is too bad, because if ever there were a team in position to give a college player the keys to the car – and the freedom to put his pedal foot to the floor, without adhering to a speed limit – it’s the Seattle Mariners.

For elite talents with college experience, good things can happen in a hurry. Troy Tulowitzki (Rockies), Ryan Braun (Brewers) and Evan Longoria (Rays) needed between 10 months and a year to reach the big leagues after signing. None of these guys, it might be noted, held out. It also might be noted that none was represented by Boras.

But will a month and change really affect Ackley that much?  I believe good things may still come his way even if he delays his appearance in Rookie Ball for another month or so.  What if Ackley doesn’t end up making it to the big leagues in a year?  The signing bonus is what he will be surviving on.  For all we know, Ackley could step on a crack in a sidewalk on August 18th and break his leg (G-d forbid).  The signing bonus is the only thing guaranteed for these guys.

Top 3 Picks Of MLB Draft Are Playing The Waiting Game from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Boras is wisely positioning the righty from San Diego State as the next best thing since sliced bread—or Mark Prior, for whom the super-agent negotiated the current record deal for a draft pick of $10.5 million in 2001.

But for the Nationals, is the exceptional numbers that Boras will most certainly ask for really worth it? There is so much uncertainty with players who have yet to step onto a major league field. Injuries were the downfall of Prior and other “can’t miss” prospects like Kris Benson and Brien Taylor. $50 million is a lot of money for a lot of question marks.

Strasburg, though, is in fact worth a lot of money at this point as he comes with a lot of potential, but Washington has to be careful not to get caught up in the almost mythic magnitude that Boras is trying to make the 20-year-old live up to.

Who really has the upper hand in this negotiation that will most likely last up to the very end of the August 17 signing deadline though?

Strasburg is the top pick, so there’s no moving up if he were to not sign this year and enter the draft next year. There probably won’t be a chance to make as much money in Japan as he could in the States and what happens if Boras does take the phenom overseas for a year and ends up getting picked by another cash-strapped franchise that’s not willing to pay either. Boras can’t keep holding Strasburg out of the majors. Plus, both Strasburg and Boras have to be concerned about the potential for injuries or ineffectiveness if they choose to wait for the MLB.

So Boras has to work his magic.

He’s made the point that Strasburg is much better than any of the other draft selections; he’s used words such as extraordinary and premium in regards to his client, and he’s even referred to Strasburg as “a different breed of cat”—whatever that means.

For Strasburg to meet all of the expectations and hype that surrounds him would be as remarkable as the contract that Boras is trying to get for him. It’s going to be difficult for Strasburg to be the savior of baseball’s worst team when he can only march out there for his team once every five days.

If he works out, it will definitely be a step in the right direction for the team in the Nation’s capital, but a mistake involving that much money could set Washington back even further—and Americans have seen how giving out large amounts of money in that area works out.

If Boras can persuade the Nationals that investing so much money in a relatively unproven prospect is worth it, even with all the risks that come with signing high draft picks, than he should start performing tricks in front of large audiences in Las Vegas.

Strasburg’s ability warrants record-breaking dollars, but if everything doesn’t go well, the money can quickly disappear.

Boras Pulling Out All the Tricks for Strasburg from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules