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Slot money is a LEGAL restraint of trade. MLB has been excepted from restraint of trade litigation, for the most part, over the years. A SLOT is where a player is drafted. There are 30 teams and roughly 50 rounds, so there are 1,500 slots (I am excluding sandwich rounds between I believe 1, 2 & 3). Others here will know more about the sandwich rounds than me.

MLB gives the clubs guidelines where they would like to see signing bonuses. For the most part, the draft bonuses follow the slot money recommended. However, there are exceptions. You can find what has been paid on Baseball America website.

Like one person posted. Lots of money rounds 1-3, ok money 4-7, not so much 8-10, meal money after. What a player gets in a particular slot can vary because of age (high school versus 4 year college senior) and other factors. Advisors or agents will tell their clients there is no such thing as slot money -- but there is.

Wages paid in any business translates to the market value of the labor, theoritically. The average ML player makes $1.7M, or so. Therefore, the bonuses paid reflect the perceived future worth of the player drafted factoring in the probability of reaching the major leagues. The probability falls after the first 8 rounds pretty dramatically. The economics of bonus money paid would be a great subject of a book. It would be a function of: (1) the average ML salary, (2) the probability of reaching the major leagues, (3) the cost of a minor league player (or what one makes off of them), (4) the cost to have a scouting system and draft system, (5) the ability to find talent outside of the draft, etc. An economist could run the numbers to find relative worth. The other hugh variable is that information about the business of the draft is imperfect. This sets up a system where the clubs have an advantage. A finance person would say they have the ability to arbitrage.

One of the biggest cogs in the wheel of the imperfect market is Perfect Game. Jerry has reallllllly helped getting information out about the skills of players. Jerry, and his organization have probably more than any organization been responsible for adding millions of dollars into the draft system because they make available the specs of players in high school and college.

If this further confuses you -- it is all the more reason to get an advisor. As much as I know, I am absolutely naive when it comes to this business. Read Fungo's post again.
Last edited by baseballpapa
In response to the original post, the information I received was that it doesn't make sense to have an advisor unless your son is likely to be drafted in the top ten rounds and even then it isn't necessary. They become more important when you are dealing with the bigger money in the top three rounds.
The important thing for the boys to concentrate on is playing baseball. If they get too caught up in the scout/advisor thing it isn't going to help them. My sons seem to just answer the scout's questions when they are asked, fill out the forms, and get back to enjoying and working hard at their baseball.
quote:
Originally posted by Newcomer:
I don't know what a 4year senior is.


I think your other questions have been pretty much answered, but I didn't see anyone answer this. A 4 year senior is someone who has played four years in college (thus they have already been draft eligible at least once and were either passed over or drafted and not signed). Generally when someone refers to a 4th year senior in relation to the draft, what they are saying is that the player doesn't have the option of returning to school, therefore they can probably be expected to be a fairly easy sign for less money than if they were a junior or draft eligible sophomore (FYI a draft eligible sophomore is someone who is at least 21 years old as of the draft).

There is also a fifth year senior that has most likely redshirted. In case you don't know, redshirting means that a player wasn't able or ready to play during one of their years in college, so they took a redshirt which allows them to have four years of eligibility in addition to their redshirt year when they didn't play. In this case, a player will have been in school for five years, but they only played in official baseball games in four of those years. If I'm not mistaking (though I may well be) there are special rules for 5th year seniors turning pro, but I'm not sure what they are.
quote:
Originally posted by Coachee:
FYI- I have served as an advisor on two occassions, not an agent but advisor- in both cases an attorney handled the legal aspects of signing the contract-so thus done without a agent-You do not need an agent to sign with a team, in fact some clubs prefer not to deal with an agent at all.


**The standardized initial contract has the addendums of bonus, CSP, level bonus, and family goodies.

The legalese is pretty standard after that. Why an agent??

As I said here before, I know a D1 2007 SS with a nice grant who told his Dad he wants to play baseball, not work at the books. I suppose he would take the 50th round, even though he has Top 10 round talent.

Any scouts want to PM me. The kid is good!!
njbb's son was a 7th round pick and is a terrific prospect.
While I don't mean to speak for her, there are many things a parent and player cannot ever know about the "business" of MLB.
Some illustrations:
1.) Attending Fall Instrux or not/going to school can be negotiated.
2.) In this years CBA, it is now agreed that pro rated signing bonuses must be returned by the player if they do not play for 6 years, unless released by the club or injured and unable to play.This can be negotiated and should be mandatory for every parent/player to consider.
3.) How the new CBA and the mandatory 8/15 signing date with change negotiations/slot money, if at all, will likely need specific expertise.
4.) Understanding the 40 man rule and the new Rule V draft/implications will be of great assistance for player/parent alike.
These are just some of the reasons to have an advisor and ultimately an agent. IMO, your son needs to have the best of help and assistance because he is the one enterring a situation where he is playing a game that is now run like a business, and run by people who know their business.
infielddad-

Thanks so much for the info. When you say "pro rated signing bonus" what exactly do you mean. The stuff we got from the Phillies says the player get 1/2 of the bonus in 30 days, and the remainder the following year(end of Jan). No mention of this 6 year obligation.
I do kind of wonder why every scout has asked about our using an agent.

Thanks so much. This site has been more helpful than anywhere...
OPP has told me on many occassions that he wished his son had better representation out of HS.

infielddad is correct, lots of things can get overlooked when you sign.

I know of a player (have discussed with infieldad) who did not negotiate an ok for fall classes and left early and was in some heat with his team.

Lots of things we think are standard (as told by the scouts) need clarification BEFORE one signs.
nc42dad, you have been given the information on when a bonus will be paid.
My understanding is the most recent CBA provides that if a player quits before completing the 6 years(the term of the standard contract) that player will be required to repay the team, on a pro-rated basis, for the term of the contract that was not completed. If the player quit after year 3, he would repay potentially 1/2 of his bonus, unless something different is negotiated into the contract.
If your son is picked anywhere in round 1-5, that is an issue that cannot be left unattended.
After you hang around minor league baseball, you find there are a lot of things that are unknown about the baseball business.
Last edited by infielddad
Thank you infielddad, you are much better at explaining things than I'm.
There can also last min, phone calls on draft day that would be better handled by an agent. There have been situations where a player gets a call "We pick next, will you sign for $$, need your answer now yes or no."
You can prepare all you want,but when a mlb team is on the phone on draft day and its your dream,its a whole other story. Eek
Last edited by njbb
There are clubs that make deals before the draft, we will take you higher than you should go if you will agree to sign for X amount- Draft Day -phone calls ,hey, we dont think you are going to go as high as we expected we can grab you if you agree to sign for X- my normal response we will get back wtih you. Also sometimes a scout knows the agent or vice versa-they make a deal,have never liked that one, not sure if players best interest is always protected, but it save the chance of risk.
With both my guys it worked out fine, not all clubs share info but many do. Last kid was a 3rd rounder to Yankeees, a very nice bonus.
Teams really do have the ball in their court! If they hold a college kid to that 6 year term, most would be 27 years old by the time they fill out their obligation. You don't see too many 27 year old minor leaguers. The question would be, do the guys "give it up" or do they get their "release." Very interesting info here.
quote:
You don't see too many 27 year old minor leaguers. The question would be, do the guys "give it up" or do they get their "release." Very interesting info here.


You would be surprised at the number of 27-30 years olds on AAA rosters. Players at that stage are free agents and many AAA teams are pretty big revenue generators. The combination allows players to earn upwards of $10,000 per month, and more on occasion for a season. They also provide a type of "taxi" player for the ML club in case of injury.
With that said, most players get released within the term of the contract. Perhaps an equal number give it up. Along the way, injuries play a major role in both.
Our son will, hopefully, start his 4th season in March. In his draft, 25 of players drafted in the first 30 rounds are still playing. None came from high school. Each of them know a lot of players will be released come April 1. It can be very emotional.
It was a big surprise to me to find out the club provides a uniform. you buy the rest...during the season you use 2 pair turf shoes,4 pairs of cleats, 2 gloves, 12 pairs of batting gloves,2 pairs sliding shorts, cups, underarmour (long and short sleeve)oakley glasses...$$$$$
If your signed with an agent they provide equipment. Agents handle the business of baseball and allows the player to work on the game of baseball
Last edited by njbb
In most cases the more money spent determines how long of a shot you get in minor leagues, just as in many cases the Minor League manager isnt making out the lineup, the brass decides who plays, again many times based on their bonus. This is also why you have to be careful when adding bonus clauses in contracts for AA-AAA, depending on the club if its going to cost them more money you might not ever get promoted unless your just tearing it up. It has always amazed me how the big club watches the money in the minor leagues, yet, many times with waste millions on a major league chance, trust me all money and effort is spent at the major league level.
"I HEARD not sure, taking a bit below slot can get you out of that one."

TPM, I would imagine there are a number of ways the return of the signing bonus could be addressed. The important thing in the contract is that it is addressed. Otherwise the CBA could be controlling.
As a result, if a player were to accept less that "slot," it would be critically important to include that the player did that in exchange for which the club waives/releases the player from any claim to return of any portion of the bonus.
It would be terrible for a player to accept less than slot, not have it explicitly stated in the agreement why he did that, and then try and quit before year 6. The reason it would be terrible is the player would likely lose money on both ends of the contract. Frown
When you look at the bonuses on BA, you rarely see the #100, or the #130 pick signing at the same bonus from year to year. Sometimes they vary quite a bit. Question is then, how do you really know what is below "slot." Can you believe what they tell you? I've played too much poker to really believe they are going to honestly tell you that number.
Some of those variations are not necessarily related to slot. They are as much related to a college senior sign vs options to return to school, the team with which you are dealing(small market vs big, etc) and how well you negotiate or advised.
To me, that is where an advisor/agent has a huge advantage over a player/parent. If you are involved with multiple players, you will be in contact with multiple clubs. By talking with multiple clubs about multiple players, you will be far more versed in slot , the willingness of a club to exceed slot, etc., than one family talking to multiple clubs.
I think njbb had a most poignant post. If your son is going to be picked in the first 10 rounds and he is other than a college senior, the variabilities and pressures to make decisions come draft day are considerable.
The amount of information you need to know, and the ability to negotiate them is not something we ever do and is something professional teams do all the time.
Every player and family would be helped by realizing that first contract is for 6 years. If you didn't get what you wanted, or overlooked things/didn't know things, 6 years is a very long time before your son gets any chance to change a term.
Last edited by infielddad
The more I read on this Forum, the more I tend to think this entire process may be better left to someone else. You guys bring up so many good points that I never thought of...I thought it was much simpler than it really appears. Who knows what will happen next spring & I truly believe it will all work out for the best. Thanks to everyone who has shared their experiences! I guess I know what to do next!
Thanks baseballmom, please note that the minimum salary for minor league players is for those that have been on the forty man roster and sent back to minors.
Wouldn't it have been nice for first year players. Frown

0S8,
FYI, you can't have an agent until after you sign a contract or one loses eligibility. Eek
Last edited by TPM
As I read through the posts on this thread, there seems to be one general thought. That being... a player needs an adviser/agent. I do think an advisor can be very helpful and in most cases having an agent once in professional baseball is very important.

That said... A couple things people should know.

In many many cases, players change agents. It is very common. Why is this????

There are many cases where "an" advisor did nothing of any value and just sat back and waited for the draft to happen and collect his percentage. The worst possible cases involve advisor/agents actually working more on behalf of the MLB club than the player they are advising. If someone can't figure out why or how that might happen, I would be happy to explain.

There are many "war stories" involving agent/advisors.

The thing that troubles me is when I hear things like "You need "an" advisor"! "An" advisor can do many things. Well... this is true! But it's the "an" that troubles me. What can be very worthwhile and important is having a "good" advisor/agent that truly has the "players" best interest as his intent. They will all tell you what you want to hear, but they don't all back up that talk with actions and results.

Sometimes "an" advisor can be a player’s road block in many ways.

Please understand, this is not the pretty side of baseball. Yes, there are many excellent advisor/agents! But understand there are even more whose “only” goal is selling you on their sincere interest in your son’s future.

What I’m saying is very simple… Having “an” advisor/agent can be good or terrible! Having a “good” advisor/agent will be valuable! The best situation is when several of the good ones are who you’re talking to. Please understand!!!! They are not all the same!!!!

Perhaps the very easiest way to get involved in baseball is to become an agent/advisor. There are hundreds of new ones every year. Some with great intentions, others who are chasing the golden goose! The very best are not always the slickest salesmen, but they can be the most honest.

My suggestion to those who have reason to believe they might be drafted on the first day. Do your homework. Hear the testimonials, but go beyond that, testimonials are listed because they help sell. Try to find players who have changed agents and find out why! However, beware of what you hear there too. Lots of reasons for changing agents and players sometimes become part of the sales force (so to speak). Best if it’s a player you know and trust!

Card deals, for most players amount to practically nothing. If your son is a good draft pick, agents will be there after the draft as well. The best agents are most interested in your MLB future, not your draft bonus.

Don’t get overly excited about shoe and equipment deals. These things might help, but that should be the last reason for deciding on an advisor/agent.

Hope people know, I have no reason for saying this stuff. Take it for what it’s worth!

The good news - There are some very good advisor/agents.
The bad news – There are some very bad ones.
Last edited by PGStaff
PG,
Good post and good reminder about the advisor/agent process (along with all the other processes we have to process Eek).

I think it is important for anyone seriously considering signing to seek advice from an advisor.
But just like in recruiting make sure that person is the right "fit". Smile
PG, I agree there is a big difference between an advisor and a quality advisor. My experience, from dealing in the legal and medical world, is that it isn't easy to tell them apart if you don't do it for a living. Might actually even be harder because the agent/advisor market does not require a license and even if you Google, you won't find much at all about the industry or individual. It truly is a buyer beware potential.
With that in mind, I tried to fashion responses in this thread which would provide a player and his family with a number of items to discuss with potential advisors/agents. Through the questions/discussions on many of the items contained in this thread, hopefully, the player/parent will be able to select the someone with quality, ability, and integrity.
While it is correct that players can and often do change agents. that doesn't change the terms of that first contract!
Last edited by infielddad
In the State of Texas, Sports Agencies are licensed or "registered".
TPM, I made no reference or inference to minor league players salaries...only posted the link if folks wanted to read about the changes...FO had said in his post (a page or so back) that he had seen it posted on mlb, but it was no longer there...
The document referenced above, highlights many of the items which are being discussed here.
The basic agreement is some 234 pages, & should be read...it provokes many questions for all us novices & really points to the need for a very good agent/lawyer to interpret... http://roadsidephotos.com/baseball/BasicAgreement.pdf
quote:
infielddad,
Don't agents have to be licensed?


TPM, I believe licensing of agents is a state by state issue. If I recall correctly, not all states require licensing for sports agents. It is a relatively recent requirement in CA.

With that said, I used the term license on a comparative basis with a lawyer/doctor. A lawyer in CA has to sit for a 2 1/2 day bar exam and then complete upwards of 36 units of continuing education every 3 years. With that level of oversight, there are more I would not have represent me than I would care to describe. To my knowledge, licensing of an agent is not based on demonstrated skills and knowledge. More related to filing an application and paying a fee.
So as to not sound like a know it all… I’ve never heard of any lisencing, that is new to me.

My understanding… Agents are not recognized by MLB until they have a Major League player they represent. Anyone on earth (including all of us who post here) can fill out an application and become an advisor. For that matter you can become an advisor without even applying to MLB.

People would be surprised if they checked with MLB to see if someone is recognized as an agent. Those who do not or never have represented a Major League player will not be recognized by MLB.

All it takes is the ability to fill out an application. I personally have never heard of anyone who has ever been turned down. Maybe there is some state regulation, but I don’t think so. Most agents/advisors work with kids from many different states. Perhaps the agency (firm) has state regulations, but individuals only need to go to work. It’s not a well regulated field!

If I’m wrong, please give proof. I am wrong a lot!
PG, I looked it up and there are states that regulate Sports Agents (not talking advisors here but agents). It said nothing about being "licensed". I didn't think that agents were licensed (you know like a hairdresser who had to go to school and take a "state" board Big Grin), but needed to have a legit business which means, a "license" to do business in their state.

Also, you are correct, you have to be a recognized "agent" to do business with MLB. That includes becoming "certified" to do business with them, whatever that means.
Last edited by TPM
Seems to me you have leverage with the clubs out of HS. A 3rd or 4th year college player, good luck.

I wonder if the new CBA and the 8/15 date gives a little advantage to the ballplayer. Seems to me it puts more pressure on the clubs to sign the kids, or lose them. Maybe the kids could use this to their advantage.

What do I know.

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