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.

Red Sox end Astros’ 10-game winning streak

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The Red Sox salvaged the final game of their three-game home series against the Astros, winning 4-3 on Sunday afternoon. In doing so, they ended the Astros’ 10-game winning streak.

Xander Bogaerts struck the decisive blow, knocking in a run with a double in the seventh inning to break a 3-3 tie. Michael Chavis also hit another homer — his eighth of the season — while Mookie Betts collected three hits and scored three runs to raise his OPS to .899.

The Astros last lost on May 7 against the Royals, the second game of a three-game series. The Astros won the final game of that set, then swept the Rangers in a four-game series, the Tigers in three, and won the first two games against the Red Sox. It’s their second 10-game winning streak of the season, as they won 10 striaght between April 5-16, sweeping the Athletics, Yankees, and Mariners before losing the second of two games against the A’s in Oakland.

At 31-16, the Astros are slightly behind the Twins — in progress as of this writing — for the best winning percentage in the majors. The Red Sox, meanwhile, have made up some ground after ending April 13-17. They’re now 24-22, good for third place in the AL East.