Exploiting inefficiencies in the agent business: one agency lowers its commissions

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This is interesting. Darren Heitner of Forbes is reporting that one agency which represents a lot of baseball players — Performance Baseball – is cutting its commission fees from the typical 5% to 1.5%:

”We saw a fiercely competitive landscape where everybody looked the same.  The agents basically offer the same services, pretty much the same fee structure whether it is 4% or 5%, and I could literally hear the sound in my ear from a meeting a couple of years ago where a guy was saying ‘you guys are all really the same.’  My partner and I said let’s focus on what we do best and what we really enjoy doing.”

The article notes that, in reality, not all agents are the same, as some provide different services to their clients. Scott Boras, for example, famously has an entire operation of training, personal business management and general hand-holding professionals on staff to be one-stop shopping for clients. Others, like the guys at Performance, are more about doing the deals and that’s it. Yet, for some reason, all still charged the same basic commissions.

Interesting to see some agents go to the budget model (though I doubt they’d call it that). Maybe it will help disrupt the pattern in which some agents do a ton of work for a player between the ages of 18 and 25 or something and then get tossed aside for someone else just before the player hits free agency.

Jose Altuve and Corey Kluber head list of Esurance MLB Award winners

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The 2017 MLB award season officially drew to a close on Friday with the Esurance MLB Awards, handed out to the best hitters, pitchers, front office members and moments in the 2017 season. Jose Altuve was crowned the Best Major Leaguer overall, beating out fellow finalists Giancarlo Stanton and Aaron Judge, while two-time Cy Young Award winner Corey Kluber took home honors as Best Pitcher.

Here’s the full list of winners:

  • Best Rookie: Aaron Judge
  • Best Defensive Player: Nolan Arenado
  • Personality of the Year: Adrian Beltre
  • Best Postseason Major Leaguer: Jose Altuve and Justin Verlander
  • Best Postseason Moment: Alex Bregman‘s 10th inning walk-off single in Game 5 of the World Series (video)
  • Best TV/Radio Call: Joe Buck and John Smoltz call Jose Altuve’s game-tying three-run blast in Game 5 of the World Series (video)
  • Best Play (Offense): Nolan Arenado completes the cycle with a walk-off homer (video)
  • Best Play (Defense): Austin Jackson‘s over-the-wall catch in the Red Sox’ bullpen (video)
  • Best Single-Game Performance: Anthony Rendon‘s six-hit, three-homer, 10-RBI game (video)
  • Best Player-Fan Interaction: Joey Votto gives Walter “Superbubz” Herbert a bat and jersey (video)
  • Best Fan Catch: Fan’s brother-in-law grabs Yasiel Puig home run ball and chucks it back on the field (video)
  • Best Manager: A.J. Hinch
  • Best Executive: Jeff Luhnow

No surprises here — the world champion Astros ran away with seven awards, including those for Best Manger and Executive and a dual award for Best Major Leaguer of the Postseason. Altuve added to an impressive run this offseason after earning a Silver Slugger, two Players Choice Awards, Hank Aaron Award and MVP Award for his outstanding work in 2017, while Yankees’ slugger Aaron Judge continued to be a lock for all AL rookie-based awards after locking down the Rookie of the Year title earlier this week.