Boras Almost "Steals" Another One

Four months ago, I discussed the merits of a complaint filed with the MLBPA against Scott Boras by Jim Munsey, the agent for Atlanta Braves catching prospect Jarrod Saltalamacchia, for soliciting his client in violation of MLBPA agent regulations. Boras' solicitation efforts involving the Braves prospect were ultimately unsuccessful, but I'm told by a reliable source that the fallout of Munsey's complaint was that the union (not surprisingly) just simply told Boras to stop doing it. Well, as one would expect, that didn't create any deterrence for Boras to stop soliciting other agents' clients.

Early last week, ESPN reporter Jerry Crasnick (and author of the book License to Deal) wrote that Carlos Lee, one of the top offensive players on the free-agent market this winter, informed the Texas Rangers that he was leaving his agent of eight years, Adam Katz, for Boras. However, just two days later, Crasnick reported that Lee changed his mind and went back to Katz. Crasnick's article begins by stating that Lee can expect to receive a multiyear contract this winter for at least $60M and then he poignantly notes, "The question is, which agent is going to collect the commission?"

Crasnick is right on, because that's what it's all about. The commission fee arrangement in the sports agent business is what fuels client solicitation and other agent misconduct. In fact, the economics are such that agents have a huge incentive to solicit and make all kinds of false promises to prospective clients. Think about it. If Boras makes a nominal investment in trying to land Lee as a client and just negotiates one contract for Lee this winter, Boras' standard 5% commission lands him a handsome $3M fee! So why wouldn't Boras and other agents have the incentive to spend a few grand soliciting (sorry, I mean "recruiting") Lee and doing what ever it takes to represent him? I discuss this issue in depth in my forthcoming article in the Willamette Law Review, which will be released in the upcoming weeks.

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