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.

Anthony Rizzo to wear walking boot for five to seven days

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Cubs first baseman Anthony Rizzo suffered what appeared to be an awful injury during Sunday’s game against the Pirates, twisting his ankle while attempting to field a bunt. An MRI revealed that he has a lateral sprain of his right ankle, Gordon Wittenmyer of the Chicago Sun-Times reports. Rizzo will wear a walking boot for five to seven days before being reevaluated.

Given that there are only two weeks left in the regular season, it seems doubtful Rizzo would be able to return to aid the Cubs’ NL Wild Card chase. The club entered Monday leading the second Wild Card by a game over the Brewers.

Rizzo, 30, is batting .289/.404/.516 with 26 home runs, 93 RBI, and 88 runs scored in 592 plate appearances on the year. Victor Caratini started at first base for Monday’s game against the Reds. The Cubs may also use Ian Happ, Willson Contreras, and Jonathan Lucroy at first base while Rizzo is out.