Agent/Advisor 101

A good book about an agents life written by Jerry Crasnick of BA and ESPN who documented 1 year in the life of baseball agent Matt Sosnick. The link below points to the Amazon review.

License to Deal

A couple of comments

"Jerry Crasnick’s ‘License to Deal’ is the best independent look at the baseball agents’ world ever written. He weaves the tale around maverick agent Matt Sosnick, and explores every facet of the business from the draft to the Players Association to Scott Boras. A must-read for anyone who wants to understand baseball’s very important subculture.’’ - Peter Gammons, ESPN

"License to Deal is a fascinating look at a subject about which so much is heard, but so little is known. It’s a classic story of haves and have-nots, and favorites and underdogs. By looking at the baseball agent world through the eyes of Matt Sosnick, Jerry Crasnick puts a human face and a personality to what is often viewed as a cold and impersonal business. At the end, you find yourself rooting for the little guy.’’ -Billy Beane, Oakland A’s general manager

"There have been thousands of books about baseball, but Jerry Crasnick has written a remarkable original, about the game among agents: the lawless competition to lure clients, the wars to keep other agents from stealing their players, and the endless internal battles over whether they are serving the player or serving themselves. A must read for anybody who wants to understand Major League Baseball.’’ -Buster Olney, ESPN, author of the New York Times best-seller "The Last Night of the Yankee Dynasty’’

"Jerry Crasnick takes an in-depth look at an often misunderstood facet of the modern business of baseball. His writing is compelling and his depiction of his main characters is remarkably human. In a business where agents are often vilified and their personas exaggerated, Jerry helps us to understand a very compassionate and personal side of the relationship between player and agent and how that dynamic influences the current landscape of baseball.’’ -Mark Shapiro, Cleveland Indians general manager

While I can relate to your observations and concerns, I think the bigger picture can provide an idea where I come down.
First of all, when the players are negotiating for that money, they are negotiating in most cases a few hundred thousand with owners worth $1,000,000,000, or more. They are negotiating with an industry generating $6,000,000,000 per year.
Additionally, they are negotiating with an industry which "owns" them, within the context of an industry afforded protection from the antitrust laws(one of the very few.) As opposed to your situation where you can leave tomorrow if you are not happy with the raise and negotiate a raise with some other employer, these players either negotiate with that owner, or they don't have a job.
Finally, it might provide some illustration to provide a glimpse of those you don't see. During it's Winter meetings, the multi billion dollar industry runs a job fair. Most of those who are seeking a position are directly out of college. The available positions pay close to minimum wage or are volunteer internships. Nearly every position is only for the season.
For the young people most aged 20-30, with very little money, they get charged close to $250 each to participate. MLB has far more who want to work for them than they have positions available. That is true at every level, including the Milb, the clubhouse people, the trainers, and the players.
If you don't like what they pay, you can leave, but not find another job especially if you are a player.
Those might be some of the reasons why agents are needed.

Advisor/Agents just like everybody else have different ways of doing business.

That's why it's important if you do decide to work with one in particular, that a player and his family fully understand that and trust his advice.

Experience and relationships with teams for the long haul, may be more important for some, than an agent who is going to help get as much as you can s*ck out of the system.

I agree that the book is a must read for anyone.

Very true infield dad,
It seems EVERY job in professional baseball has to go though their own "minor league system."A college grad with a degree in sports management may be stuffing envelopes or selling cotton candy and putting in 12 hr days as an unpaid intern. Broadcasters start in the short season rookie ball in a backwater town, umpires ,scouts,coaches and a host of others trying to work their way up level by level, traveling to jobs around the country for very little money and fed by dreams.
I very much admire most of the people I've met doing their time in the minor leagues ..... and you really do not hear anyone complaining

Sounds like I need to read "License to Deal."

infielddad
great analogy about the dream.
while we are very new to the "business" of baseball. i would urge parents players etc. to enjoy .....savor the high school and college experience. it will never be like that again. sure the baseball played on the field is the same game, that's where it ends.


a big business disquised as a little boy's dream.

There are many reasons to use an agent. There are many reasons not to use an agent. For those who sign for big bucks I can not emphasize the importance of seeing a local estate planner (attorney). This is especially important for tax purposes. I can't help but wonder about all the conflict of interest that arises when agents and attorneys get together to handle an athlete's estate.

We've always used the horse-n-cart analogy when looking at the agent/player relationship. The player is the horse who does the work and gets the cart to the next location. The cart is the agent who carries the baggage, picks up the passenger (endorsements), collects the fares (negotiations), but, most important he and his passengers have the best view of the horse.

This relationship needs to change when the cart gets in front of the horse, or, the cart is no longer picking up fares.

However, with that said, the cart may also have to retire the horse if it is no longer useful.

RZM1:

I agree. My concern however, is the new "one stop shop" agency where they have the agent, estate planner, media marketer, attorney etc.. While this does provide the player a more convienant avenue, it may not be the best. I say this because in the end, they will act in concert with one another. Sometimes for the benefit of the player and sometimes towards the detriment. Since we are not concerned with the benefits, it is to the detriment that we scrutinize.

newagent


Again I ask what is your experience in the field such that when you "scrutinize" and report to we parents that we should trust and believe what you say?

As I see it you left a career being a criminal lawyer because you saw a HUGER POT OF GOLD as an agent.


Anyone can research and spout words on a website---what is you experience as an agent---so far you have shown me a lack of experience especially in your wood bat thtread

By the way---you never called to chat a bit about who and what you are all about---

TRhit:

You apparantly don't read my posts thoroughly as I have never grouped every parent of an athlete together.

Further, whether you believe or disbelieve what I say is up to you. I only scrutinize posts of 1)ignorance and/or 2) arrogance. Unfortunately for you and a few others several of your postings falls into one or both of the above.

Yes I did leave my field of criminal defense. And yes one of the reasons was money, and since we are a capitalist country I assume you see nothing wrong with wanting to make more money, do you?

As for my wooden bat thtread (didn't you criticize my spelling), I wanted to know what the people, not the sponsors, not the companies, not the retired grad of St. John's University thought. One of the people I represent does not care what kind of bat he uses, so long as it has a heavy barrell. That is what sparked my question. One of the things I am learning about this site is the attempt to intimidate new posters or differing views. I must admit, at first I was intimidated. But as I read more of some of the intimadators' posts I soon realized that some of them really have no clue as to what they are talking about. And in my experience there is nothing more dangerous than clueless individuals who are armed with nothing more than intimidation. Armed with that knowledge, I am ready to soldier on, post to post, commenting, questioning, and criticizing those who seek only to post and never to research. So why did I not call you...My time is valuable and there are certain things you can't unlearn.

newagent,

Good luck in your new endeavor.

Being in Florida, you are smack dab in the middle of some of the best baseball and football talent in the country.

With the new slot system in the baseball draft, how would you circumvent the system to get your player the best deal possible?

In years past, I have seen more mediocre players in my view sign for larger signing money than is presently being offerred. I saw one third round pick offerred less money than the value of a college education.

What would you do to get the most for your player while protecting his interests financially at the same time?

quote:

Originally posted by newagent:
RZM1:

I agree. My concern however, is the new "one stop shop" agency where they have the agent, estate planner, media marketer, attorney etc.. While this does provide the player a more convienant avenue, it may not be the best. I say this because in the end, they will act in concert with one another. Sometimes for the benefit of the player and sometimes towards the detriment. Since we are not concerned with the benefits, it is to the detriment that we scrutinize.

Many times I shop at Walmart Super Saver because I can get almost anything I need with one stop and I trust what I buy there. If I don't trust the product I go elsewhere, that is my right as a consumer. I think that analogy can be carried forward to the baseball agent situation. My sons agent has that "one stop- full service"alternative. In our case my sons girlfriends father is a tax/investment consultant as a profession and he goes there for those services. No problem with anyone involved about who's sevice he uses.

Now the kicker. I think that Ryan would be no where near making that intelligent decision if he had not gone to college. In other words, that kid out of HS may be more likely to being reeled in by some "money-grabbing" agent unless having close family guidance. Only another reason that college has it's advantages

newagent

Again you dont answer all the questions but that seems to be your operating method so I will accept that.

As for intimidation I truly feel sorry for you or any other poster who feels intimidated by words on a computer screen.

Are you licensed by MLB to be an agent?


Still waiting for that one on one phone convo

If an agency is considerd "one shop", it is up to the player and family to decide what is important due to his needs. They are not forced to do anything. My husband is an RIA (registered investment advisor) but my son does not use his services, mainly because the person who was recommended deals with professional sports players and is not a part of that agency. And he did his homework from those he knew who uses his services as well (same way you have to do your agent homework). He pays his own bills and needs no one to do that or get paid to do so, that was his choice. He used an attorney outside of the agency for planning his estate. Part of the services is free tax service, which can get involved for pro athletes living in one state, playing in another, etc. No one forces him or every made him feel he HAD to do something by way of using someone affiliated with the company or not.
I also beleive his education (especially those business and finance classes) helped him to understand what the purpose of investing vs. spending is and to understand what was being explained to him at 22.

MLB does not license agents.
Licensing is regulated in some states, not all, and through the MLBPA.
Is that what you meant.
Aren't you the one who trashed a new poster recently for coming on this site without doing their research?

Another thread driven wildly off topic!

infielddad

I think if you check you will find that MLB agents are to be certified by MLB

Check the Sports Agent Directory---they talk about "aspiring" sports agents

biggerpapi,
License to Deal is a very good and required read. But it also has it's issues since it is more about contracts and bonuses than what happens from that point forward.
That would make sense because what happens afterward is tedious, not very glamorous, and where the good agents end up being the most help, many times.
One thing that has to be said in this thread is the importance of having a good agent. They are not necessarily easy to find or easy to judge, but are critical when an individual player, age 18-21, is dealing with a billion dollar entity and the resources that group has available.
When A'rod was reported to have negotiated his contract, he actually didn't. Appears to have had a good deal of assistance from Warren Buffet advisors.
Hopefully, some of this will get this back where you hoped.

From MLBPlayers.com:

" Q: How does an individual become a certified player agent?
After a player on a 40-man roster has designated an agent as his representative, the agent must apply for certification by the MLBPA. Agents who have been designated by a 40-man roster player and who are not yet certified should call Rebecca Rivera at (212) 826-0808 for further information."

Why would MLB certify agents for the players? There has been at least one massive lawsuit against the NFLPA because one of it's certified agents assertedly bilked a number of players out of millions. Do you propose that MLB owners wish to assume that type of responsibility and potential liability?
No charge for doing your "research."

Another good read is the business of sports agent. There you will see just how low some ofb the agents go. You will also learn about the evolution of the athlete agent business. There really are some horror stories in this book. It also provides a new perspective of the Ricky Williams and No-Limit Sports representation. I highly reccommend this book as well.

Infielddad is correct.

FYI, one can call the MLBPA to inquire about the agents reputation and performance.

Also be aware that some agents will hire others to do their soliciting, I am not sure if this is legal.

Quincy:

The slot bonus is a very intersting concept. It should be noted that but, for baseball's antitrust exemption, the cap violates Section 1 of the Sherman Act (Remember the NCAA case). However, the answer to your question falls to incentives also known as performance bonuses. For instance bonuses could be handed down for: promotion, games played, fielding pct., OBP (which I think is much more important than Avg.) etc...

As for your comments aboout some players being signed for way more than they are worth, I completely agree. Professional sports is one of the few professions where people are provided money up front to keep with no strings attached (Micahel Vick). Remember, for every player over priced player signed to a club, there was some overzealous agent who gained the trust of the organization and convicnced them of the players worth. With that said, clubs will think twice when tendering an offer to the player represented by the agent. Remember, there is so much that happens behind closed doors.

As for advising the athlete. I start with this premise, unless there is $500,000 signining bonus out of high school, the player should in most cases opt for college (subject to a number of exceptions). College can increase a college player's draft stock. It can also ruin their arms(R.A. Dickey). Pitchers tend to have higher era's in college (something to do with metal bats) this means they also face more batters, this also leads to more wear on the arm. Each player is unique. Therefore, my answer only scratches the surface.

As for my learning experience, I am currently taking CLE (Continuing Legal Education) courses on estate planning, taxes, and trusts and estates. For a short time I worked at an estate planning firm and learned first hand the pros and cons of Revocable and Irrevocable Trusts. Palm Beach is also home to some of the most well respected trust companies and hedge fund directors. As you know, that is the area that made Warren Buffet rich.

quote:

One thing that has to be said in this thread is the importance of having a good agent.

What is also important is that if you don't have an agent just don't go out and find one, just to have one. Last year my son played in the NY-Penn and while agent and money talk is taboo between teammates, he estimated that more guys did not have agents than had them. Many times the good agent comes into play once you're established, and the gutter dwelling agents selling snake oil sit in the dark corners waiting for knee jerk selections from virgin players entering the system.

On a similar note. IMHO, an advisor is a good option if available. We considered like test driving a new car, if you like it you buy it, if not it goes back to the lot and you drive what you got until you find that perfect "fit". There's that word again The advisor is not going to provide real time profit but the best time to establish relationships is when nothing is at stake.

The best wangle in the 2007 draft was manipulating an MLB contract to get over slot. Very creative.

You are in a gold mine area of baseball. There is one organization run by some brothers of your profession in the Palm Beach area who have a great eye for players and player improvement.

You may enjoy watching some of their games, or playing some golf or donating time to them.

quote:

Originally posted by Quincy:
The best wangle in the 2007 draft was manipulating an MLB contract to get over slot. Very creative.

I've read somewhere (not my take) that wangle may not always be what it appears. The signing bonus is still slot, with the rest paid out over the time the player has to live his contract out. If for any reasons he leaves all of that money has to be returned.
The real bonus, IMO is that the player is now receiving MLB benefits that you may or may never receive.

Very true, most players in the lower minors do not have agents.

Its good to know one who handles household names

quote:

The signing bonus is still slot, with the rest paid out over the time the player has to live his contract out. If for any reasons he leaves all of that money has to be returned.

What are the slots #'s?

NewAgent:
Good information but please stand down from the defense posture. You have displayed your skills and I believe most are now aware you are very competent - if that was the mission,- Mission Accomplished. TPM and TR are more about being protecting of our youth than intimidating new posters. There is also a line not to cross when beating up beloved posters....and you are close to crossing the line...i am just the messanger.
That said, this is the information site for baseball and you have given valuable information. For that, Thanks

quote:

By newagent - Remember, for every player over priced player signed to a club, there was some overzealous agent who gained the trust of the organization and convicnced them of the players worth. With that said, clubs will think twice when tendering an offer to the player represented by the agent. Remember, there is so much that happens behind closed doors.

newagent,

With all due respect... Not sure you meant it that way, but...

That comment makes MLB organizations and Scouting Departments sound like they’re village idiots who can be entirely fooled by slick agents. Then do you really believe they would avoid a talented player they want because of the agent???

Agents (after the draft) can negotiate on behalf of the player… But it is ALWAYS the club (unless arbitration case) that decides the value of that player. If a club was that easily convinced of a players worth by listening to agents, they would be lost.

Sometimes agents can shop his player around to see who values him the most (if he is a FA), but they can’t pull the wool over the eyes of those running MLB Clubs. Agents can deal with arbitration, but again… even if they might win, they're not fooling anyone into paying more than the players value.

The good agents get what the player is actually worth in the eyes of the buyer. It’s not about fooling anyone. It is simply getting full value for the player. That value can differ from one team to the next and that is what can drive up the players overall worth.

Some clubs have more room to take risks than others. So if a player is worth 20 million to the Yankees it doesn’t mean he is worth 20 million to the Twins. It’s really the teams with the most money that drive up the value of a player. If someone will pay $20 million… that player is worth $20 million. This is what happens in free agency, but it really starts happening before FA, causing trades of players on teams that won’t be able to afford to sign them once their contact runs out. (Johan Santana) So they trade the high priced type for some good low priced players. If they don’t they just end up losing the player to the highest bidder and pick up a draft pick. At this point good agents are not only important but they are critical.

I think it is kind of a low blow for someone to claim agents are misleading MLB clubs into paying much more than what a player is worth to their organization. I also think that is giving agents way too much credit. The best agents get the player what he is worth in the eyes of the buyer. If the player does not provide that value for whatever reason the buyer made a mistake. There is no agent that can sell a club on a used Pinto for the price of a new Rolls Royce.

Here's some info regarding this discussion, read through.

http://www.baseballamerica.com/today/askba/264014.html

quote:

Originally posted by InTheMit:
There is also a line not to cross when beating up beloved posters....and you are close to crossing the line.

That is called message board banter and any "beloved" poster who puts their 2 cents out there should expect possible rebuttal. NewAgent has his opinions and he's being called out on them by many on this board but I see no one telling others to be kind to him. The HSBBW Old Timers should be callused enough to take it or get off the pot. Everyone is entitled their opinions and the same time should expect to argue their side, IMHO.

No 1 poster is bigger than the next and that is how different opinions get shared.

Sorry for the Hijack as this has been an informational thread for the most part.

Readng over PG's post brought something to mind.

Choosing an agent (if you do for your HS or college player) should not be about who is going to advise or get you the most money (maybe if you are the first few picks) at draft time, or sending you to someone to invest, or draw up your trust or doing your taxes.

That decision should be based upon that person's reputation, experience and what they will be able to help you with later on, a good reputation with MLBPA and familiar with arbitration, does business with good equipment companies, and be there to support you with any help you may need during those long years.

Anyone trying to sell themselves by saying he can get your player the most he can out of "the deal" at draft time and nothing else is not who I would prefer my son to do business with (though after hS that's his decision).
If your son wants to play proball and give up college out of HS and given the opportunity, no amount of what you are not going to get should stop that, if that is what he wants and understands what it will be once he gets there.

quote:

Choosing an agent (if you do for your HS or college player) should not be about who is going to advise or get you the most money (maybe if you are the first few picks) at draft time, or sending you to someone to invest, or draw up your trust or doing your taxes.

That decision should be based upon that person's reputation, experience and what they will be able to help you with later on, a good reputation with MLBPA and familiar with arbitration, does business with good equipment companies, and be there to support you with any help you may need during those long years.

Reality says this is a decision that combines those good and bad qualities. The qualities you don't like are those necessary for negotiating and "business" guidance, the ones you like are needed for player support. A "tree hugging" agent may put a smile on your face but how will he fill your wallet.

Besides negotiating, and providing equipment and services I think a good agent is a centering force in a crazy business. He understands the business of baseball and helps the player understand the process, so the player can focus on playing the game.

A good agent like a good player will get noticed. If an agent has integrity he will get noticed quicker. Integrity like ability is showcased through actions not words. There are some agents who blah blah blah, with a little sugar here, a little syrup there topped with a large amount of insincerity. However, there is also many a player who says all-star here, all-prep there, highly recruited here, letter of intent to play there and that is not limited to football. Some agents are in denial about there integrity. Similarly, some players are in denial about there (in)ability.

There is an interesting similarity that exists between aspiring ballplayers and aspiring agents. Some will work hard, always follow orders, and respect the rules. However, for some reason or another they won't make it. There are some really good people out there who could do twice the job as some of these "experienced" agents and because they possess integrity they can't compete. Its funny because whether its the agent who uses unjust means to obtain favorable results, or the player who injects steroids to enhance his performance, sthose effected will turn a blind eye. Why? Because for some, money is the bottom line.

I'm not sure of newagent's credibility, some of his comments don't sound like they're coming from a legit agent but who knows.
What I do know, as someone who is registered to sell securities & investments, is that I wouldn't trust 1 dime of my money to new agent.
The comment about what made Warren Buffet rich is one of the most incorrect, preposterous, & ignorant things I've ever read.
Linking and of Buffet's wealth to trust companies and hedge funds is miles beyond ridiculous. In fact, it couldn't be further from the truth.
I sincerely hope you have nothing to do with handling any portion of your clients money, not even a minor leaguers road per diem.

In Florida there are people who manage hedge funds

In florida there are people who manage trusts

Warrent Buffet obtained a lot of money, and his wealth came from Berkshire Hathaway.

And by the way, please define "Legit Agent"

Further evidence you have no idea what you're talking about when it comes to finance. None of Warren Buffet's wealth or that of Berkshire Hathaway is in any way associated with hedge funds nor was it invested by these "trusts" you mention???
While some of his personal money may now be held in trusts for tax purposes those trusts had no control whatsoever over what Buffet or Berkshire invested in over the years and had ZERO effect on his wealth.
Geography also has nothing to do with wealth. What are you talking about?????
Google "legitimate" or look it up in the dictionary.
You have much to learn before you ever have any influence over your clients money.
If you ever use such heinous and incorrect statements in front of potential clients and their parents are even somewhat financially savvy you'll be laughed and then escorted out of the home in a heartbeat.