Dominican baseball player

U.S. investors are commodifying Dominican ballplayers

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In today’s New York Times Michael S. Schmidt  reports that U.S. investors, many of whom are unconnected to Major League Baseball, are setting up training academies in the Dominican Republic with the sole purpose of profiting on draftees’ signing bonuses:

Recognizing that major league teams are offering multimillion-dollar contracts to some teenage prospects, the investors are either financing upstart Dominican trainers, known as buscones, or building their own academies. In exchange, the investors are guaranteed significant returns — sometimes as much as 50 percent of their players’ bonuses — when they sign with major league teams. Agents in the United States typically receive 5 percent.

Some of the investors in this game have some tenuous connection to Major League Baseball, such as former Yankees’ crown prince Steve Swindal,  but Schmidt reports that most are just random profit-seekers, such as “a real estate lawyer from New Jersey, a dentist from California and a computer salesman from upstate New York.”  In essence they’re American buscones who, instead of finding a random kid to flip to a Major League team, are working on a bulk model.

I can put on my commie hat — yes, I own one — and declare, with at least some degree of honesty, that all development of young baseball talent involves exploitation. At least in the way that term is technically defined.  Even a prospect from an upscale Southern California suburb is “exploited” in that his talents are obtained and then used by Major League Baseball so that it might profit off his labors in an amount that exceeds what he is initially paid while he is simultaneously prohibited from taking his labor elsewhere.  On some cold level he is an investment vehicle for agents and teams, and we obviously have no problem with this.

But this is different. Different than Major League teams setting up their own academies. Different than baseball setting up an international draft. At least in those instances baseball is or would have a longer game in mind, in that they would seek to recoup their investments by having players develop into prospects and one day have productive careers. And, even if the vast majority of players don’t make it, there are public relations and regulatory means through which Major League Baseball could be compelled or persuaded to make sure that the circumstances under which they house and train these kids are adequate, safe and ultimately beneficial to even the non-prospects.  I mean, Felipe Alou or someone of his stature could shame baseball into doing the right thing by these kids if it was found that it wasn’t.

But who — besides Michael S. Schmidt — is watching some real estate lawyer from New Jersey, a dentist from California and a computer salesman from upstate New York, none of whom have a reason to care a lick about these kids after they’re signed or, in most cases, passed over?  What motivation do they have beyond maximizing signing bonuses and keeping costs low in the meantime?

None that I can see.  And even if the lawyer, the dentist and the computer salesman Schmidt mentions are running clean tight ships, the nature of investment for investment’s sake is such that, eventually, there will be a race to the bottom in an effort to maximize profits. I mean, the first guy who bundled mortgages was probably pretty prudent about it.  He probably kept good files and made sure that only  top quality paper got sold.  Things, however, eventually got out of hand. Because that’s what happens when the only goal is to turn a profit in the short term.

Yankees in, Red Sox out on Edwin Encarnacion

TORONTO, ON - OCTOBER 19:  Edwin Encarnacion #10 of the Toronto Blue Jays looks on against the Cleveland Indians during game five of the American League Championship Series at Rogers Centre on October 19, 2016 in Toronto, Canada.  (Photo by Vaughn Ridley/Getty Images)
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In light of the Astros’ deal for veteran designated hitter Carlos Beltran on Saturday, the Yankees are thought to be intensifying their pursuit of free agent Edwin Encarnacion, reports Jon Morosi of FOX Sports. The Yankees never made an official offer to Beltran, but remain in need of a DH/first baseman to give them a little more power outside of a Tyler AustinGreg Bird combo in 2017.

The Red Sox, on the other hand, are reportedly withdrawing their interest when it comes to the Encarnacion sweepstakes. According to FanRag Sports’ Jon Heyman, they will look for a hitter to beef up their lineup without taking a “big plunge” on the 34-year-old.

Encarnacion enjoyed another All-Star run with the Blue Jays in 2016, hitting at a .263/.357/.529 clip with 42 homers and a league-leading 127 RBI in 702 PA. He’s expected to command a significant contract in free agency, and agent Paul Kinzer said that a potential deal is unlikely to be finalized before the Winter Meetings as Encarnacion is not close to agreeing to any offer. Interested teams include the Blue Jays and the Astros, though Beltran’s signing appears to have effectively taken Houston out of the running for the slugger.

Report: The Nationals are still in on Chris Sale and Andrew McCutchen

CHICAGO, IL - SEPTEMBER 05: Chris Sale #49 of the Chicago White Sox pitches against the Detroit Tigers during the first inning on September 5, 2016 at U. S. Cellular Field in Chicago, Illinois. (Photo by David Banks/Getty Images)
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The Nationals are trying to go big this offseason, and FOX Sports’ Ken Rosenthal notes that they are still in trade talks for White Sox’ left-hander Chris Sale and Pirates’ center fielder Andrew McCutchen. Both players figure to command a big return, as Sale delivered another Cy Young-worthy performance in 2016 and, despite a downturn in his production rate, McCutchen is still one of the more coveted sluggers in the National League.

In 2016, Sale led the league in complete games, with six, and turned in a 3.34 ERA and 5.2 fWAR in 226 2/3 innings. While teams have been sniffing around the White Sox’ ace since the trade deadline, the club is expected to maintain a high asking price — so high, said FanRag Sports’ Jon Heyman, that it may keep the left-hander in Chicago for the foreseeable future.

According to Heyman, four other teams are reportedly in the mix for Sale, including the Red Sox, Astros, Rangers, and Braves, though parts of Rosenthal’s tweet hinted that the Red Sox were maintaining their interest in hopes of striking a more affordable deal. Should the Nationals pursue a deal for Sale, it’s likely that they’d have to move shortstop/center fielder Trea Turner, which they appear reluctant to do.

McCutchen, meanwhile, is also drawing interest around the league after batting .256/.336/.430 with 24 home runs in 675 PA during 2016. He didn’t appear to lose much power in his eighth season with the Pirates, but took considerably fewer walks and struck out at a career-high clip.

The Nationals were said to be in the lead for McCutchen on Thursday, and there was some expectation that the club would wrap up a trade for the center fielder by the non-tender deadline on Friday. FOX Sports’ Jon Morosi pointed out that the Rangers were also talking to the Pirates, however, and no deal has come to fruition as of yet.