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.

Video: Cubs score run on Pirates’ appeal throw

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2019 has been one long nightmare for the Pirates. They’re in last place in the NL Central, have had multiple clubhouse fights, and can’t stop getting into bench-clearing incidents. The embarrassment continued on Sunday as the club lost 16-6 to the Cubs, suffering a three-game series sweep in Chicago.

One of those 16 runs the Pirates allowed was particularly noteworthy. In the bottom of the third inning, with the game tied at 5-5, the Cubs had runners on first and second with two outs. Tony Kemp hit a triple to right field, allowing both Ben Zobrist and Jason Heyward to score to make it 7-5. The Pirates thought one of the Cubs’ base runners didn’t touch third base on their way home. Reliever Michael Feliz attempted to make an appeal throw to third base, but it was way too high for Erik González to catch, so Kemp scored easily on the error.

The Pirates lost Friday’s game to the Cubs 17-8 and Saturday’s game 14-1. They were outscored 47-15 in the three-game series. According to Baseball Reference, since 1908, the Pirates never allowed 14+ runs in three consecutive games and only did it two games in a row twice before this series, in 1949 and in 1950. The Cubs scored 14+ in three consecutive games just one other time, in 1930.