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.

Cardinals place Carlos Martinez on 10-day disabled list with oblique strain

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The Cardinals have placed right-hander Carlos Martinez on the 10-day disabled list with a right oblique strain, per a team announcement on Saturday. The move is retroactive to July 20. No definite timetable has been set for his return to the rotation yet, but interim manager Mike Shildt told reporters he feels confident that Martinez will only need to skip one start before taking the mound again.

Martinez, 26, sustained the injury while trying to snare a line drive during Thursday’s 9-6 loss to the Cubs. It hasn’t exactly been smooth sailing for the righty this season, as he lost nearly four weeks to a right lat strain and pitched to a 5.32 ERA after returning to the Cardinals’ roster in early June. Overall, however, his numbers look a little stronger: He’s 6-6 in 17 starts with a 3.39 ERA, 4.5 BB/9 and 8.4 SO/9 through 95 2/3 innings.

In a corresponding move, right-handed reliever John Brebbia has been recalled from Triple-A Memphis. The 28-year-old Brebbia has already enjoyed three short-lived stints in the majors this season; he currently holds a cumulative 4.13 ERA, 2.2 BB/9, 9.9 SO/9 and two saves in 32 2/3 innings with the club.