Advisor (Agent) / Draft Questions

College JR (RHP) Son has been getting attention from scouts & higher and we're at the stage now where I believe it might be time to engage an advisor.  He was not drafted out of HS.  From what we are being told, he will probably be a top 10 rounder.  A few teams have been in touch and asked if we had an advisor yet.  Son has also been contacted by a couple of agencies.  I have yet to talk to anyone though.

I'm not really sure where to begin.  I have read everything that I can on this site but now I have even more questions.  Some have compared this to college selection.  That was easy.  To me it is like car shopping.

For those that are going through this currently or those that have been through it - HELP!

Specifically and in no particular order -

Does he need an advisor?

What value does an advisor bring to someone being drafted in the first 10 rounds?  With slot money being pre-determined is there really any negotiating?

How do you know what advisor -> agent to pick?

Do some clubs prefer to use specific agencies over others?

What is son's obligation to the advisor -> agent once he signs the dotted line?

What is the advisor -> agent's obligation after he signs the dotted line?

What is a typical percentage for the agent?

More questions to come, but for now this will hopefully get the conversation started.

Original Post

I can answer a few of your questions as we are going through the process with our 2018. I was told that it is highly recommended to get an adviser...which we did. We were fortunate in that we are working with a local guy who came well recommended. He has been awesome. We will actually meet with him early next week to get the full lowdown on the draft along with who is currently interested and what to expect on draft day. Chances are very slim that my son will choose minor league ball over college but we are keeping all options open for him right now. The only obligation we have to our adviser is that we are honest and forthcoming in regards to my son's history and if my son is drafted a 5% commission. If our son is not drafted or foregoes the draft, their is no obligation on our part. I received a booklet with obligation of agency/adviser but don't have it with me now. That's about all I have right now. Best of luck to you all!

Exciting times for the both of you Phanatic and CoachLD, congratulations on son making it that far.  I am no expert but can only relate our journey with son, be it right or wrong.  CoachLD son has an advantage in that he can go to college if draft selection doesn't turn out to your expectation.  Phanatic also has slight advantage in that he can return to college for Sr. year and hopefully move up in the 2019 draft.  Keep in mind though that the signing bonus will be considerably smaller than if a Jr.

Does he need an advisor? - highly recommended.  I wouldn't feel pressured to accept an advisor (time is relatively short now though) just to have one.  My son/I probably met/interviewed close to 15 advisors. Narrowed it down to top 5, then after almost a year from when it began chose one (6 mts before draft).  Advisors are helpful in guiding the player through the process, reassuring, providing feedback, etc. 

What value does an advisor bring to someone being drafted in the first 10 rounds?  With slot money being pre-determined is there really any negotiating?   Nothing is "pre-determined", slot money can be greater, same or less.  Teams want to go lower than slot with upper draft picks in order to offer more money for lower picks.  Son's signing bonus was negotiated.

How do you know what advisor -> agent to pick?  Son had it narrowed down to 2 advisors who were both excellent, either one would do great advising.  I recommended go with the advisor who son relates most with, who he is compatible with.  He has to be willing to put a tremendous amount of faith in the advisor for baseball.  Advisors cannot accept any payment for their guidance/education.  In return though there is the unwritten "expectation" that when draft day comes and son signs the contract, he will keep the advisor who now becomes his agent.

Do some clubs prefer to use specific agencies over others?  Not sure.  Take it for what it's worth, probably 80% told us they either have an "in" or are on "good terms" with GM.  I don't doubt though that every agency has certain reputations with the team when it comes to negotiation.

What is son's obligation to the advisor -> agent once he signs the dotted line?  He won't sign anything for advisor.  Once he signs with a MLB team then he will sign with agent.  Do not do it the other way around.  Once he signs anything he is no longer an amateur thus not eligible for college ball.  If he signs an agent first and something falls through with MLB then disaster.  Obligation is to listen, learn, and trust what the advisor is telling you.  Once he made a verbal commit to the advisor it seems like majority of others stopped contacting, as if they knew.  Once he told the few who contacted  him, basically they said if it doesn't work out let them know. Appears to be an unwritten rule among agencies.

What is the advisor -> agent's obligation after he signs the dotted line?  This will probably vary according to agencies and how high of draft pick.  My son's agency will handle pretty much everything he would need while playing minor league, including helping with relocation, auto buying, endorsements, equipment, travel, etc.  Once he reaches the show other things will kick in.

What is a typical percentage for the agent?  Most advisors said 5%, some said they can do it for a little less.  My feeling is you get what you pay for, base it on compatibility and experience.

Enjoy the remaining month because it will soon get wild if it hasn't yet.  Best of luck in June!

 

 

 

coachld posted:

I can answer a few of your questions as we are going through the process with our 2018. I was told that it is highly recommended to get an adviser...which we did. We were fortunate in that we are working with a local guy who came well recommended. He has been awesome. We will actually meet with him early next week to get the full lowdown on the draft along with who is currently interested and what to expect on draft day. Chances are very slim that my son will choose minor league ball over college but we are keeping all options open for him right now. The only obligation we have to our adviser is that we are honest and forthcoming in regards to my son's history and if my son is drafted a 5% commission. If our son is not drafted or foregoes the draft, their is no obligation on our part. I received a booklet with obligation of agency/adviser but don't have it with me now. That's about all I have right now. Best of luck to you all!

5% commission. Wow. If your son was drafted with a  100k signing bonus thats 30k off the top, taxes and commission. That's 30k off the top. Do you feel he is worth that out of HS.

Of course he is going to be great, that's 5k for more or less doing nothing.

There is another discussion going on the board, you should check it out.  

JMO

Trust In Him posted:

Exciting times for the both of you Phanatic and CoachLD, congratulations on son making it that far.  I am no expert but can only relate our journey with son, be it right or wrong.  CoachLD son has an advantage in that he can go to college if draft selection doesn't turn out to your expectation.  Phanatic also has slight advantage in that he can return to college for Sr. year and hopefully move up in the 2019 draft.  Keep in mind though that the signing bonus will be considerably smaller than if a Jr.

Does he need an advisor? - highly recommended.  I wouldn't feel pressured to accept an advisor (time is relatively short now though) just to have one.  My son/I probably met/interviewed close to 15 advisors. Narrowed it down to top 5, then after almost a year from when it began chose one (6 mts before draft).  Advisors are helpful in guiding the player through the process, reassuring, providing feedback, etc. 

What value does an advisor bring to someone being drafted in the first 10 rounds?  With slot money being pre-determined is there really any negotiating?   Nothing is "pre-determined", slot money can be greater, same or less.  Teams want to go lower than slot with upper draft picks in order to offer more money for lower picks.  Son's signing bonus was negotiated.

How do you know what advisor -> agent to pick?  Son had it narrowed down to 2 advisors who were both excellent, either one would do great advising.  I recommended go with the advisor who son relates most with, who he is compatible with.  He has to be willing to put a tremendous amount of faith in the advisor for baseball.  Advisors cannot accept any payment for their guidance/education.  In return though there is the unwritten "expectation" that when draft day comes and son signs the contract, he will keep the advisor who now becomes his agent.

Do some clubs prefer to use specific agencies over others?  Not sure.  Take it for what it's worth, probably 80% told us they either have an "in" or are on "good terms" with GM.  I don't doubt though that every agency has certain reputations with the team when it comes to negotiation.

What is son's obligation to the advisor -> agent once he signs the dotted line?  He won't sign anything for advisor.  Once he signs with a MLB team then he will sign with agent.  Do not do it the other way around.  Once he signs anything he is no longer an amateur thus not eligible for college ball.  If he signs an agent first and something falls through with MLB then disaster.  Obligation is to listen, learn, and trust what the advisor is telling you.  Once he made a verbal commit to the advisor it seems like majority of others stopped contacting, as if they knew.  Once he told the few who contacted  him, basically they said if it doesn't work out let them know. Appears to be an unwritten rule among agencies.

What is the advisor -> agent's obligation after he signs the dotted line?  This will probably vary according to agencies and how high of draft pick.  My son's agency will handle pretty much everything he would need while playing minor league, including helping with relocation, auto buying, endorsements, equipment, travel, etc.  Once he reaches the show other things will kick in.

What is a typical percentage for the agent?  Most advisors said 5%, some said they can do it for a little less.  My feeling is you get what you pay for, base it on compatibility and experience.

Enjoy the remaining month because it will soon get wild if it hasn't yet.  Best of luck in June!

 

 

 

What is your sons projection (round) at this time.  Is he coming out of HS or college, what position?

TPM posted:
Trust In Him posted:

Exciting times for the both of you Phanatic and CoachLD, congratulations on son making it that far.  I am no expert but can only relate our journey with son, be it right or wrong.  CoachLD son has an advantage in that he can go to college if draft selection doesn't turn out to your expectation.  Phanatic also has slight advantage in that he can return to college for Sr. year and hopefully move up in the 2019 draft.  Keep in mind though that the signing bonus will be considerably smaller than if a Jr.

Does he need an advisor? - highly recommended.  I wouldn't feel pressured to accept an advisor (time is relatively short now though) just to have one.  My son/I probably met/interviewed close to 15 advisors. Narrowed it down to top 5, then after almost a year from when it began chose one (6 mts before draft).  Advisors are helpful in guiding the player through the process, reassuring, providing feedback, etc. 

What value does an advisor bring to someone being drafted in the first 10 rounds?  With slot money being pre-determined is there really any negotiating?   Nothing is "pre-determined", slot money can be greater, same or less.  Teams want to go lower than slot with upper draft picks in order to offer more money for lower picks.  Son's signing bonus was negotiated.

How do you know what advisor -> agent to pick?  Son had it narrowed down to 2 advisors who were both excellent, either one would do great advising.  I recommended go with the advisor who son relates most with, who he is compatible with.  He has to be willing to put a tremendous amount of faith in the advisor for baseball.  Advisors cannot accept any payment for their guidance/education.  In return though there is the unwritten "expectation" that when draft day comes and son signs the contract, he will keep the advisor who now becomes his agent.

Do some clubs prefer to use specific agencies over others?  Not sure.  Take it for what it's worth, probably 80% told us they either have an "in" or are on "good terms" with GM.  I don't doubt though that every agency has certain reputations with the team when it comes to negotiation.

What is son's obligation to the advisor -> agent once he signs the dotted line?  He won't sign anything for advisor.  Once he signs with a MLB team then he will sign with agent.  Do not do it the other way around.  Once he signs anything he is no longer an amateur thus not eligible for college ball.  If he signs an agent first and something falls through with MLB then disaster.  Obligation is to listen, learn, and trust what the advisor is telling you.  Once he made a verbal commit to the advisor it seems like majority of others stopped contacting, as if they knew.  Once he told the few who contacted  him, basically they said if it doesn't work out let them know. Appears to be an unwritten rule among agencies.

What is the advisor -> agent's obligation after he signs the dotted line?  This will probably vary according to agencies and how high of draft pick.  My son's agency will handle pretty much everything he would need while playing minor league, including helping with relocation, auto buying, endorsements, equipment, travel, etc.  Once he reaches the show other things will kick in.

What is a typical percentage for the agent?  Most advisors said 5%, some said they can do it for a little less.  My feeling is you get what you pay for, base it on compatibility and experience.

Enjoy the remaining month because it will soon get wild if it hasn't yet.  Best of luck in June!

 

 

 

What is your sons projection (round) at this time.  Is he coming out of HS or college, what position?

TPM, PM

TPM posted:
Phanatic posted:

Trust in Him & TPM thanks for the responses. TPM - I am curious what you think a fair or avg percentage would be.

Depends on what the bonus amount would be. 

Yeah it sucks when you look at the overall picture of how much agents get paid.  I look at it this way though, kind of like taxes.  If you pay high taxes it's because you made a lot of money thus you are sitting pretty good.  Not really going to debate the work done by agents, IMO they deserve to get compensated well.  My son so far has recouped maybe 50% of the fees through various things set up by his agent, such as cards, clothing, equipment and such.  I guess the big picture is like any other occupation, you live large off the whales while you lose on the smaller fish.

Trust In Him posted:
TPM posted:
Phanatic posted:

Trust in Him & TPM thanks for the responses. TPM - I am curious what you think a fair or avg percentage would be.

Depends on what the bonus amount would be. 

Yeah it sucks when you look at the overall picture of how much agents get paid.  I look at it this way though, kind of like taxes.  If you pay high taxes it's because you made a lot of money thus you are sitting pretty good.  Not really going to debate the work done by agents, IMO they deserve to get compensated well.  My son so far has recouped maybe 50% of the fees through various things set up by his agent, such as cards, clothing, equipment and such.  I guess the big picture is like any other occupation, you live large off the whales while you lose on the smaller fish.

While I agree with above sons commission to his agent was 4%,  what hurt more was the US government taking 25% off the top.  OUCH !

However, looking back, if it still exists son will have a pretty nice social security check each month...lol.  Also, his agent recommended his financial guy who he uses to this day. At 32 son has a nice nest egg, and lives pretty simply. IMO his financial advisor played just as important part if not more than his agent.

 

TPM posted:
coachld posted:

I can answer a few of your questions as we are going through the process with our 2018. I was told that it is highly recommended to get an adviser...which we did. We were fortunate in that we are working with a local guy who came well recommended. He has been awesome. We will actually meet with him early next week to get the full lowdown on the draft along with who is currently interested and what to expect on draft day. Chances are very slim that my son will choose minor league ball over college but we are keeping all options open for him right now. The only obligation we have to our adviser is that we are honest and forthcoming in regards to my son's history and if my son is drafted a 5% commission. If our son is not drafted or foregoes the draft, their is no obligation on our part. I received a booklet with obligation of agency/adviser but don't have it with me now. That's about all I have right now. Best of luck to you all!

5% commission. Wow. If your son was drafted with a  100k signing bonus thats 30k off the top, taxes and commission. That's 30k off the top. Do you feel he is worth that out of HS.

Of course he is going to be great, that's 5k for more or less doing nothing.

There is another discussion going on the board, you should check it out.  

JMO

No offense but since you have no problem being direct...I will be direct. How do you know that my son's adviser has done nothing? Maybe a more appropriate response might have asked what my son's agent has done to deserve a 5% commission. Since you commented, I will tell you any way.

He has been incredibly helpful. He handles almost all of the scout contacts. He has built a relationship with my son's HC and gets pitching schedule from him and sends out to scouts which means my son can focus on his HS baseball season and I can focus on enjoying my son's senior season. Early in the season, there were 2 scouts in to see player at local college. That did not work out, so he contacted them about my son and we ended up meeting with both. He has set up BP sessions when we have been out of town with local scouts, one of whom recommended my son and that specific team is now interested in drafting my son. My son was a late bloomer so when we were looking for a college home, he was checking in with coaching contacts at various Power 5 schools with several schools expressing interest post-draft (after losing players to draft). We are meeting with him early next week so that he can give us the ins/outs of the draft and answer all of our questions. He does not pressure our family in regards to draft and has stated countless times that he is in this for the long run if need be and has no problems with my son choosing to go to college and wait until after his junior year.

Also, for those who don't know...typical commission is 4-5% for baseball advisers. Long story short, I am incredibly thankful that this guy was recommended to us!

 

"True Story"

One of our Area Code and Goodwill Series players requested my assistance in selecting a Player Advisor. After 4 interviews with quality advisors, I selected one advisor and negotiated a "suitable" fee.

A few years later, he is now the agent for Mike Trout.

Bob

coachld posted:
TPM posted:
coachld posted:

I can answer a few of your questions as we are going through the process with our 2018. I was told that it is highly recommended to get an adviser...which we did. We were fortunate in that we are working with a local guy who came well recommended. He has been awesome. We will actually meet with him early next week to get the full lowdown on the draft along with who is currently interested and what to expect on draft day. Chances are very slim that my son will choose minor league ball over college but we are keeping all options open for him right now. The only obligation we have to our adviser is that we are honest and forthcoming in regards to my son's history and if my son is drafted a 5% commission. If our son is not drafted or foregoes the draft, their is no obligation on our part. I received a booklet with obligation of agency/adviser but don't have it with me now. That's about all I have right now. Best of luck to you all!

5% commission. Wow. If your son was drafted with a  100k signing bonus thats 30k off the top, taxes and commission. That's 30k off the top. Do you feel he is worth that out of HS.

Of course he is going to be great, that's 5k for more or less doing nothing.

There is another discussion going on the board, you should check it out.  

JMO

No offense but since you have no problem being direct...I will be direct. How do you know that my son's adviser has done nothing? Maybe a more appropriate response might have asked what my son's agent has done to deserve a 5% commission. Since you commented, I will tell you any way.

He has been incredibly helpful. He handles almost all of the scout contacts. He has built a relationship with my son's HC and gets pitching schedule from him and sends out to scouts which means my son can focus on his HS baseball season and I can focus on enjoying my son's senior season. Early in the season, there were 2 scouts in to see player at local college. That did not work out, so he contacted them about my son and we ended up meeting with both. He has set up BP sessions when we have been out of town with local scouts, one of whom recommended my son and that specific team is now interested in drafting my son. My son was a late bloomer so when we were looking for a college home, he was checking in with coaching contacts at various Power 5 schools with several schools expressing interest post-draft (after losing players to draft). We are meeting with him early next week so that he can give us the ins/outs of the draft and answer all of our questions. He does not pressure our family in regards to draft and has stated countless times that he is in this for the long run if need be and has no problems with my son choosing to go to college and wait until after his junior year.

Also, for those who don't know...typical commission is 4-5% for baseball advisers. Long story short, I am incredibly thankful that this guy was recommended to us!

 

Everything that the guy is doing now is for nothing, until your son signs a contract.  Thats his choice.

How will he earn that 5% AFTER the draft?

If you feel that is a fair commission for your son to give up part of his bonus, if drafted, than so be it. 

 

 

Son picked advisor.  He was in college and went with the one he was comfortable with, who works only by referrals. We have yet to meet him.  

So, not only the 4% advisors fee and 25% Federal Tax, son had another 5+% in state tax that wasnt taken out of his check, but still an obligation.  When I did his estimated taxes and asked for "a huge check" to send to the state treasury, he was not pleased.  Life lessons.

Some baseball advisors have financial advisors, folks to help with relocating, home buying, car purchases, paying monthly bills, etc. as part of their package.  Some of these services come with additional costs.  If you are not versed in taxes or investing, these services could be of help. Or get the services on your own locally.  Personally, I could see how these additional services would be of help to a young wife of an MLB player with kids.  For a minor leaguer on $1100 a month salary .... not so much. If they have had an apartment in college and paid their own bills, they will be ok.

If your son is predicted to go in the top 10 rounds as a high school player, or college junior, I would recommend an advisor.  Deals can be made before the draft of going in later rounds for lots more money, and an advisor can help with that.

Remember, it is not costing YOU anything.  

Good post Dotty. I left out the state taxes because we are in Florida. No state taxes. 

Also for every state that you play in you will have to fill out seperate tax forms for the IRS.

I dont advise that a player uses a financial advisor in the same organization as their agent. Keep that part of your business seperate to  avoid financial conflicts.

Make sure all of this is discussed with the advisor/ agent before and agreement is reached.

keewart posted:

Son picked advisor.  He was in college and went with the one he was comfortable with, who works only by referrals. We have yet to meet him.  

So, not only the 4% advisors fee and 25% Federal Tax, son had another 5+% in state tax that wasnt taken out of his check, but still an obligation.  When I did his estimated taxes and asked for "a huge check" to send to the state treasury, he was not pleased.  Life lessons.

Some baseball advisors have financial advisors, folks to help with relocating, home buying, car purchases, paying monthly bills, etc. as part of their package.  Some of these services come with additional costs.  If you are not versed in taxes or investing, these services could be of help. Or get the services on your own locally.  Personally, I could see how these additional services would be of help to a young wife of an MLB player with kids.  For a minor leaguer on $1100 a month salary .... not so much. If they have had an apartment in college and paid their own bills, they will be ok.

If your son is predicted to go in the top 10 rounds as a high school player, or college junior, I would recommend an advisor.  Deals can be made before the draft of going in later rounds for lots more money, and an advisor can help with that.

Remember, it is not costing YOU anything.  

Keewart - you have a PM.  Thanks!

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