Why do athletes pay up to 33% of their earnings to agents?
Is it really that complicated to sign a contract.
Read a freakin' book and figure it out dude.
Due to free agency and the arrival of greedy scum suckers like Scott Boras costs have skyrocketed, but are the players really benefiting?
Agents are also causing many problems with college players by luring them with bucks, illegally.
Do we really need a whole new industry called sports agents, a new major in college??
How about if owners refused to negotiate with agents?
All sports should have a different salary structure with not just a minimum salary as they have now, but also a maximum.
Why should a hot shot running back or qb who is the first round draft pick get paid more than veterans?
Agents.
Lawyers by a different name.
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Very interesting post. As a contracts professional I can tell you, yes, they are quite difficult. I've been in some contract negotiations that have lasted almost two years. Contrary to what you might think, the hard part is not negotiating on price. The hardest part is agreeing on the terms and conditions of the contract by all parties involved.
ReplyDeleteI will agree with you, people like Boras are nothing but scumbags. At this point they are just being greedy because he can. Think about it. You represent a hot commodity that everyone wants to buy, and there is only one of them. (i.e. that hot RB or QB) That is huge leverage for a contract negotiator. As an agent, I would absolutely do everything in my power to be able to represent that person and get a 33% cut.
The question is why do we need them though. Simple. You have dumb kids that know nothing about business making a deal, all they know is how to play X sport. They need someone who is knowledgeable with legal and business jargon to make sure they don't get shafted. The abuse of this power of course is another matter.
In my line of work, I am governed and must abide by the laws of the International Traffic in Arms Regulation. Several acts and treaties between countries and many other laws and regulations. Sports contracts abide by no law or regulation. Capitalism and economics in a pure form. Salary structure has nothing to do with it. That's where you change it. You regulate and enforce those contract negotiations.
I disagree with your last point. Overall, veterans get paid more than a first round picks. Most of the rookie contracts have a lot of money up front, because of their perceived value. You can't tell me that Eli as a rookie is worth less than a veteran kicker. After the short time, you see the real value of what you bought. (Demarcus Russell or Tom Brady) The goal for the team owners is to make those rookie contract short term, so you lower your risk.
This is American Capitalism at work my friend.
A-Rod doesn't have an agent and seems to handle his contracts pretty well. I think my dad's point wasn't that contracts are easy and athletes should do them on their own. The point is, as with anything, with enough reading and research a person can do anything by themselves. Pretty much the underlying tone of the best seller "Freakonomics". If young athletes took the time to read about contracts and hired people they trusted with legal experience they would be better off.
ReplyDeleteWrong. A-Rod's agent is Scott Boras.
ReplyDeletehttp://en.wikipedia.org/wiki/Scott_Boras
There's also a lot of information online also about investing. With enough reading and research, yeah you can do smart investments yourself. But if you had the opportunity of having expert advice on your life savings wouldn't you take it? I think you would.
It's the same situation. Athletes need to worry only about playing, not the business end. That's because only one of those pays the big bills. Unfortunately there are downsides to everything.
Your right, I guess he is still using Boras but I remember a while back something about him firing Boras. This is the only thing I could find about it...
ReplyDelete"On October 28, 2007, Rodriguez's agent, Scott Boras, announced that he would not renew his contract with the Yankees citing that he "was unsure of the future composition" of the team. He received a slew of criticism from fans and writers alike not only for opting out, but also for not meeting with Yankee management before he did. He was further criticized for the timing of his announcement, during the eighth inning of Game Four of the World Series, as the Boston Red Sox were wrapping up their victory over the Colorado Rockies. After realizing that the situation was not handled very well, Rodriguez contacted the New York Yankees ownership directly, bypassing Boras. Subsequently, Rodriguez issued a statement on his website, saying that he wished to stay with the Yankees."
So if he is still using Boras, I guess he didn't need him to renegotiate his contract. I agree with everything you've said Cesar. Like players should worry about playing, contracts are confusing, and it's too much for athletes especially when most only graduated high school. But 33%? That seems like a lot to secure your money. After taxes how much are players really bringing in?
Wrong A-Rod and Boras split Sep. 3 2010. Boras is the devil incarnate!!
ReplyDeletehttp://bleacherreport.com/articles/449359-alex-rodriguez-leaves-famed-baseball-agent-scott-boras
Arod fired him. He's not his agent.
ReplyDeleteYou don't need an agent to sign a contract. It's not that difficult. If you can read and are intelligent you can get around the jargon and figure it out. It may not be easy but it's possible.
Athletes get agents to pump up their status, promote, get sponsors and all the time and energy that goes into that which only helps promote a higher potential signing for future contracts. Boras' major point in the Arod/Yankees contract was the amount of TV revenue that Arod brings in along with his merchandise. Previously contracts were based solely on ticket revenue and stats. Boras' points were partially helped by the overall promotion of Arod which is done predominately by the agent. Agents are by trade, lawyers. Very few agents are not lawyers as the finite portions of their jobs are the very specific contract negotions that go on including the terms and conditions that players get (Clemens not having to go on away trips, stipends on travel, and random crap they don't need given the amount of money they already make.)
Agents have their value but I don't think you are lost without one. I can see more veterans canning their agents in the latter half of their careers after they have a general "feel" for the process and how the MLB works and doing it themselves as Arod has done. As a rookie I'm sure it's all very intimidating so it's simply easier, albiet at at 33% cut, to have someone help you through the process. I can only imagine how much more intimidating it can be trying to decipher a contract in a second language.
Had The Sports Agent not gone the route of eternal greed and gluttony nobody would have thought twice about it but the lockouts, holdouts and astronomical contracts that each sport has put out has turned them into vile creatures. Which they are. They are everything that is wrong with sports, and America for that matter. They are the devils side of Capitalism.
Having said that I think, if it were me with the God gifted ability to play professional baseball, I would probably still get an agent because I think he would get more money for me than I was able to get myself in a contract, even if he does take 33%. Because I'm greedy and need more money? No, because I'm the kind of guy that will continue to work for less than what the same job pays elsewhere because I'm NOT greedy and can't bring myself to say something. That's what agents are for. To get you what you are worth. Unfortunatly, they've gone way past that.
Even if A-Rod fired him. Boras was the one that got him the 250M deal. Hell i wouldn't care how much i got paid after that contract and I'd do it on my own too. That kind of a cut is ridiculous I agree.
ReplyDeleteI will agree with Nate's dad though that they are absolute scumbags and are hurting college sports.
Southpark did a great parody on this a few weeks back btw. i encourage everyone to watch it, (free online at southparkstudios.com) Title of the episode is Crack Baby Athletic Association.