Money Bag

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.

Joe Panik says he’s “100 percent” recovered from back injury

San Francisco Giants second baseman Joe Panik follows through on a single off Colorado Rockies relief pitcher Scott Oberg in the eighth inning of Game 1 of a baseball doubleheader Saturday, May 23, 2015, in Denver. The Giants won 10-8. (AP Photo/David Zalubowski)
AP Photo/David Zalubowski
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Giants second baseman Joe Panik missed nearly all of August and September last season due to a nagging back injury, but he told Alex Pavlovic of CSNBayArea.com on Friday that he’s feeling “100 percent.”

Panik, who earned his first All-Star selection last season, originally landed on the disabled list in early August due to what was described as lower back inflammation. He made his return in September, but appeared in just three games before being shut down. The good news is that he was cleared by doctors in mid-December and considers himself “back to normal.”

“It was right around the time of all the signings,” he said, smiling. “I was able to fly under the radar. I got tested and everything had healed up. I got cleared and was able to have my full offseason workouts. I’m good to go. I’m happy to be feeling good and going back out on the field to show that I’m healthy. My swing feels strong.”

Panik altered his offseason workout routine and plans to spend less time in his spikes in the early part of spring training. The hope is that these changes will prevent future issues.

After a strong showing as a rookie in 2014, the 25-year-old Panik proved to be one of the best second baseman in the majors last season by batting .312/.378/.455 with eight home runs and 37 RBI over 100 games while playing solid defense.

Baseball America names Corey Seager as baseball’s top prospect

Los Angeles Dodgers' Corey Seager follows through a single that scored Austin Barnes, in front of Colorado Rockies' Wilin Rosario during the sixth inning of a baseball game, Wednesday, Sept. 16, 2015, in Los Angeles. (AP Photo/Danny Moloshok)
AP Photo/Danny Moloshok
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Baseball America unveiled their top 100 prospect list Friday night during a special on MLB Network. It should come as no surprise that Dodgers infielder Corey Seager came in at No. 1.

This makes Seager the consensus top prospect in the game. He was also ranked first by MLB.com, Baseball Prospectus, and ESPN’s Keith Law. Twins outfielder Byron Buxton was ranked second on all four lists.

Baseball America has the most aggressive ranking of Cuban infielder Yoan Moncada from the Red Sox, who checked in at No. 3. He was followed by pitching prospects Lucas Giolito from the Nationals and Julio Urias from the Dodgers to round out the top five.

You can see Baseball America’s full top 100 list here.

Jenrry Mejia: “It is not like they say. I am sure that I did not use anything.”

New York Mets' Jenrry Mejia reacts after getting the last out against the Milwaukee Brewers during the ninth inning of a baseball game Friday, July 25, 2014, in Milwaukee. The Mets won 3-2. (AP Photo/Jeffrey Phelps)
AP Photo/Jeffrey Phelps
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Mets reliever Jenrry Mejia was permanently suspended on Friday after testing positive for a third time for a performance-enhancing drug. The right-hander is maintaining his innocence, as ESPN’s Adam Rubin notes in quoting Dominican sports journalist Hector Gomez. Mejia said, “It is not like they say. I am sure that I did not use anything.”

Mejia has the opportunity to petition commissioner Rob Manfred in one year for reinstatement to Major League Baseball. However, he must sit out at least two years before becoming eligible to pitch in the majors again, which would mean Mejia would be 28 years old.

Over parts of five seasons, Mejia has a career 3.68 ERA with 162 strikeouts and 76 walks over 183 1/3 innings. He was once a top prospect in the Mets’ minor league system and a top-100 overall prospect heading into the 2010 and ’11 seasons.

Bryce Harper on potential $400 million contract: “Don’t sell me short.”

Bryce Harper
AP Photo/Nick Wass
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Nationals outfielder Bryce Harper is at least three years away from free agency, but people are already contemplating just how large a contract the phenom will be able to negotiate, especially after taking home the National League Most Valuable Player Award for his performance this past season.

When the likes of David Price and Zack Greinke are signing for over $200 million at the age of 30 or older, it stands to reason that Harper could draw more as a 26-year-old if he can maintain MVP-esque levels of production over the next several seasons. $400 million might not be enough for Harper, though, as MLB.com’s Jamal Collier reports. He said, “Don’t sell me short,” which is a fantastic response.

During the 2015 season, Harper led the majors with a .460 on-base percentage and a .649 slugging percentage while leading the National League with 42 home runs and 118 runs scored. He also knocked in 99 runs for good measure. Harper and Ted Williams are the only hitters in baseball history to put up an adjusted OPS of 195 or better (100 is average) at the age of 22 or younger.