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.

Brandon Crawford homers off brother-in-law Gerrit Cole

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You can’t pick your family and no one knows that better than Giants shortstop Brandon Crawford. His sister Amy married Astros starter Gerrit Cole in November 2016, so the two players are brothers-in-law.

The two players have matched up against each other 18 times in the past, as Cole spent his first five seasons in the National League with the Pirates. Cole often won that battle, holding Crawford to four hits — all singles — in 18 plate appearances.

Crawford finally got the better of Cole on Tuesday night, hitting a line drive into the appropriately-named Crawford Boxes at Minute Maid Park for a two-run home run, cutting the Astros’ lead to 5-2.