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.

The first native Lithuanian in MLB history made his debut last night

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Why yes, it is a slow news day. But let’s not allow that to take away from some MLB history.

Last night a young man named Dovydas Neverauskas pitched in mopup duty for the Pirates, who were getting hammered by the Cubs. Mr. Neverauskas pitched two innings, allowing one run, making him, by default, the most effective pitcher the Pirates sent out there last night.

That’s good, but that’s not what makes it historic. What makes it historic is that Neverauskas is the first person born and raised in Lithuania to make the Majors. Here’s some back story on him from last year’s Futures Game.

Lithuania is known for producing basketball players. Now it has its first major leaguer. Whether he becomes baseball’s Arvydas Sabonis is an open question.

Bumgarner: dirt bike adventure was “definitely not the most responsible decision”

MLB.com
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Madison Bumgarner talked to the press yesterday about his dirt bike injury and its fallout.

While there is some speculation that the Giants may change their approach to Bumgarner’s contract situation at some point as a result of all of this, yesterday Bumgarner noted that the organization has been supportive as have his teammates. He said he apologized to them as well for an act he characterized as “definitely not the most responsible decision.”

As for the wreck itself, Bumgarner was a bit embarrassed to say that it wasn’t the result of doing anything cool or spectacular on the bike. Sounds like he probably just laid the thing down. Guess it makes no real difference given that he’s injured either way, but you’d hope to at least get a cool story out of it. Alas.

Here’s video of him talking to the press. The best and most accurate takeaway from it: when he says “it sucks.” Yep.