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 shut down Carlos Martínez for two weeks due to shoulder issue

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MLB.com’s Jenifer Langosh reports that the Cardinals are shutting down pitcher Carlos Martínez from throwing for two weeks because his shoulder strength isn’t where it should have been at this point. Langosch added that an MRI showed no structural damage in Martínez’s right shoulder.

Interestingly, president of baseball operations John Mozeliak didn’t sound too happy with Martínez offseason training regimen. Per Mark Saxon of The Athletic, Mozeliak said, “Obviously, there’s a history with Carlos’ shoulder and it would be probably in everybody’s best interest if he maintained a constant or perpetual approach to that program.”

Martínez, 27, battled oblique and shoulder injuries last year. He accrued just 118 2/3 innings, making just 18 starts. He was moved to the bullpen when he returned from the disabled list in August and finished out the season in that role. Still, Martínez managed a 3.11 ERA with 117 strikeouts and 60 walks.

Langosch reported last week that the Cardinals were considering using Martínez in relief again in 2019. The latest news may push the Cardinals to indeed use Martínez out of the bullpen once again. He will be reevaluated in early March, but there is a chance he won’t be ready for Opening Day.