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.

Madison Bumgarner has been competing in rodeos under a fake name

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The Athletic’s Andrew Baggarly and Zach Buchanan report that Diamondbacks starter Madison Bumgarner has been competing in rodeos under a fake name as recently as December. The fake name is Mason Saunders. Bumgarner explains that “Mason” is shortened from “Madison,” while “Saunders” is his wife’s maiden name.

Bumgarner — err, Saunders — and one of his rodeo partners, Jaxson Tucker, won $26,560 in a team-roping rodeo competition in December. The Rancho Rio Arena posted a picture of the pair on Facebook, highlighting that they roped four steers in 31.36 seconds.

As Baggarly and Buchanan point out, Bumgarner also pointed out in a rodeo competition last March, just a couple days before pitching in a Cactus League game versus the Athletics, back when he was still with the Giants.

Bumgarner suffered bruised ribs and a left shoulder AC sprain in 2017 when he got into a dirt bike accident. Given that, Bumgarner’s latest extracurricular activity does raise a concern for the Diamondbacks, who inked him to a five-year, $85 million contract two months ago. Baggarly and Buchanan asked Bumgarner about such a concern. Bumgarner referred them to the club’s managing partner Ken Kendrick. Kendrick directed them to GM Mike Hazen. Hazen declined speaking about “specific contract language.” For what it’s worth, Bumgarner says he primarily uses his right hand to rope.

The jig is up on Bumgarner’s hobby. He jokingly said to The Athletic’s pair, “I’m nervous about this interview right now.” He added, “I’m upset with both you two.”