Money Bag

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


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.

Brett Lawrie “likely to be traded” by the A’s

Brett Lawrie
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Oakland’s re-acquisition of infielder Jed Lowrie from Houston makes it “likely” that the A’s will now trade infielder Brett Lawrie, according to Susan Slusser of the San Francisco Chronicle.

Slusser says Lowrie’s arrival “all but ensures” both Lawrie and Danny Valencia are on the trading block, adding that Lawrie “is considered the better bet to be traded.”

Acquired last offseason from the Blue Jays in the Josh Donaldson trade, Lawrie hit .260 with 16 homers and a .706 OPS in 149 games while playing second base and third base. At age 25 he’s a solid player, but Lawrie has failed to live up to his perceived potential while hitting .263 with a .736 OPS in 494 career games.

At this point it sounds like the A’s plan to start Marcus Semien at shortstop and Lowrie at second base.

Gammons: The Red Sox could go $30-40 million higher on David Price than anyone else


Peter Gammons reports that the Red Sox are on a mission to sign David Price and that they will pay some serious money to get him. Gammons quotes one anonymous GM who says that he expects the Sox to “go $30-40 million above anyone else.”

The man calling the shots for the Sox is Dave Dombrowski and he knows Price well, of course, having traded for him in Detroit. But there is going to be serious competition for Price’s services with the Jays and Cubs, among many others, bidding for his services. It would be unusual for a team to outbid the competition by tens of millions as Gammons’ source suggests, but the dollars will be considerable regardless.

Sean Doolittle, Eireann Dolan hosted Syrian refugee families for Thanksgiving

Sean Doolittle

The Wednesday night before Thanksgiving usually means one thing: going to some mildly depressing bar in your hometown and meeting up with all of the people with whom you went to high school.

Oakland A’s pitcher Sean Doolittle and his girlfriend, Eireann Dolan, bypassed that dreary tradition and did something more uplifting instead: they hosted 17 Syrian refugee families for an early Thanksgiving dinner.

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There has been a lot of controversy lately about U.S. policy regarding Syrian refugees. Based on all of this, the only thing controversial here is that someone is letting that kid be a Chicago Bears fan. That’s no way to introduce anyone to the greatness of America.

Orioles have reached out to Yovani Gallardo

Yovani Gallardo
AP Photo/Tony Gutierrez

From Jon Heyman of CBS Sports comes word that the Orioles “like” free agent starter Yovani Gallardo and “have reached out to him” to gauge his interest in coming to Baltimore and what that might cost.

Gallardo rejected a one-year, $15.8 million qualifying offer from the Rangers earlier this month and so his free agency is tied to draft pick compensation, but that shouldn’t hurt his bottom line all that much.

The 29-year-old right-hander posted a solid 3.42 ERA in 184 1/3 innings (33 starts) this past season for Texas and he pitched well in his one ALDS start.

Heyman reported a few weeks ago that the Diamondbacks are interested, and the Cubs, Blue Jays, and Dodgers were tied to him just ahead of the July 31 trade deadline.