free agents

In The Baseball Dead Of Winter, An Old And Unresolved Ethics Problem Glows Bright

/ Jack Marshall / 14 Comments

From left to right: MLB, players, and the union.

…as Major League Baseball ignores it, as usual.

Ethics alarms test: Scott Boras, lawyer and player agent, represents two Washington Nationals free agents in their prime. One is Stephen Strasburg, one of the best and most sought after starting pitchers in the game. He was seeking, on the advice of his agent, a long-term contract of more than 30 million dollars a year. Another is Anthony Rendon, third-baseman, and the Nationals’ best player in 2019, their championship year. He also is seeking a salary of at least 30 million per year, over many years. He is a fan favorite in Washington, D.C., and obviously enjoys playing there. Contrary to popular belief, however, Major League baseball teams do not have endless supplies of money, though they have a lot. Mike Rizzo, Washington Nationals general manager, told the sports media and Washington fans that the team could not afford to sign both Strasberg and Rendon at the rates they were demanding and the marketplace dictated.

Is there a problem, and if so, what is it?

You shouldn’t need much time to answer, but then again, thousands of baseball sportswriters and the entire baseball establishment havn’t figured this out over many years, do I’ll give you a “Jeopardy!” period of reflection:

OK, contestants,what’s your answer? Continue reading →

Once Again, Baseball Agent Conflicts Are Hurting Players Who Don’t Understand Why

/ Jack Marshall / 36 Comments

Baseball writers are the tools of baseball player agents, useful idiots who write on and on about the underpaid millionaire players and the unfair owners, who won’t pay them what they “deserve.” They scrupulously avoid educating readers about the unethical player agents who manipulate the system and the players for their own benefit, not their clients.  I have written about the unregulated and largely ethics-free baseball agents before, but their conduct this off-season is unusually revolting.

At the top of the list, as usual, is mega-agent Scott Boras, who cleverly treads the line between being an agent and a lawyer—he is both—while having too many stars under his thumb for the sports organizations or bar associations to hold him to account. For example, as a lawyer, Boras would be absolutely bound to tell his clients about a settlement offer, and would be subject to disbarment if he rejected an offer without communicating it to his client (you know, like you regularly see lawyers doing on TV and in the movies). However, there are no player agent rules that require an agent to communicate a team’s salary offer to a player. Agents can, and presumably do, reject offers without their clients ever hearing about them. This, of course, avoids the problem of a baseball star saying, “Oh, hell, that’s more money than I could ever spend anyway. I know it’s less than we talked about, but go ahead and take it.”

Agents have conflicts of interest so grand, and apparently so little understood, that meaningful consent from the client, theoretically the remedy, is virtually impossible. Let’s look at Bryce Harper, Boras’s client who is seeking more than $300 million dollars over a ten year guaranteed contract. Harper is 26 years old and has already made 49 million dollars, not counting endorsements. The functional utility of each dollar he earns is less than the one earned before in his situation. Realistically, there is very little difference between a $250,000,000 contract and a $300,000,000 contract to Harper, except from an ego perspective. The extra 50,000,000 won’t make any difference to him. Boras, however, is a different matter. Let’s say his cut of Harper’s salary is 5%.  He’ll get 15,000,000 if Harper signs for the high figure, but “only” 12,500,000 if Harper agrees to the lower figure. $2.5 million means nothing to Harper: he could throw it down the toilet, and wouldn’t feel a thing. The difference to Boras, however, is much greater in practical, and add to that the marketing advantage of being able to tell potential clients that he set the new all-time record for a free agent contract for his client. Continue reading →

On Greed, Stupidity, And Reality: My Baseball Wish

/ Jack Marshall / 20 Comments

There is now rampant speculation that the twin prime-age free agents who have the so-called Hot Stove League in palpitations—the two are outfielder Bryce Harper (L) and shortstop Manny Machado (R), both 26, burgeoning superstars, and, in the estimation of many including me, assholes—will not sign contracts until February. I find this difficult to believe, since it would be jaw-droppingly stupid (and unethical), but I hope hope hope that it happens, because the ethics lessons the consequences might teach couldl be momentous.

Both young men are reportedly seeking contracts in the range of ten years at 30+ million dollars a year. Both have player agents who are telling them such exorbitant goals are reasonable.  Machado has already made about 34 million dollars in his still-brief Major League career.  Harper had made almost 48 million. Both are in a position in which they could pick out the city and team they want to live in and play with, and say to their agents, “This is where I want to be. Make the best deal you can, and make it happen.” That is what a rational person would do, and indeed, that is what some players, not players with the potential earning power of these two but ones with more brains than Harper and Machado have between them, have done, though rarely.

It is important to note that unless these guys have developed an addiction to eating diamonds or something similarly extravagant, they don’t need to work another day in their lives now. What is their motivation to be paid more than a third of a billion dollars over the next decade, other than having avaricious, unethical agents steering them in that direction? Ego? Insanity? Stupidity? Harper or Machado could call up any one of the 30 MLB teams, ask, “What can you pay me for the next five years?” and have a contract for at least $100,000,000 dollars within 25 hours. How much different will their lives be with those “low-ball” contracts than if they received the longer, richer ones they covet? Not different at all, and quite possibly better. Continue reading →

Sick-Bed Ethics Warm-Up, 11/14/18: Ethics Among the Sneezes [UPDATED]

/ Jack Marshall / 48 Comments

Good whatever it is….

1. Bottom line” Don’t trust Facebook. From the Times: “Facebook failed to closely monitor device makers after granting them access to the personal data of hundreds of millions of people, according to a previously unreported disclosure to Congress last month.” Surprised? As with Google promising moths ago that it was no longer reading our mail, then admitting months later that it had resumed the practice, the big tech companies have proven repeatedly that that we cannot believe what they say, or their motives, or their pledges of good will and public service. More from the Times story:

Facebook’s loose oversight of the partnerships was detected by the company’s government-approved privacy monitor in 2013. But it was never revealed to Facebook users, most of whom had not explicitly given the company permission to share their information. Details of those oversight practices were revealed in a letter Facebook sent last month to Senator Ron Wyden, the Oregon Democrat, a privacy advocate and frequent critic of the social media giant.

In the letter, a copy of which Mr. Wyden provided to The New York Times, Facebook wrote that by early 2013 it had entered into data-sharing agreements with seven device makers to provide what it called the “Facebook experience” — custom-built software, typically, that gave those manufacturers’ customers access to Facebook on their phones. Those partnerships, some of which date to at least 2010, fall under a consent decree with the Federal Trade Commission drafted in 2011 and intended to oversee the company’s privacy practices.

Read the whole thing. I just assume that anything I put on Facebook, regardless of the alleged settings,will be sold to or otherwise obtained by potentially malign entities.

2. Just what we need now, a rogue First Lady. First Lady Melania Trump publicly called for the President’s deputy national security adviser, Mira Ricardel, to be fired.  In a word, well, two: Shut up. The felicitous circumstance of marrying someone who is later elected President of the United States confers no expertise or authority. The position of First Lady has no Constitutionally recognized duties, nor does it carry any real power. There is nothing anyone can do to diminish the influence and spouse may have with the President behind closed doors—and that is a problem—but she or the inevitable he must not confuse, confound or otherwise seek to influence affairs of state with public comments and opinions. Why Melania wants Ricardel fired is irrelevant. It’s none of her business.

I just want to point out that I sneezed six times while typing those last four words. Applause, please. Continue reading →

Sunday Morning Ethics Warm-Up, 3/11/2018: Baseball, Bannon, and Chaos

/ Jack Marshall / 30 Comments

Good Morning!

1 Great. Now I have to defend Steve Bannon. What greeted me this morning, as I surfed the Sunday news shows, Diogenes-like, searching for an honest journalist, but the sight of Steve Bannon in France, addressing the far-right National Front party yesterday and saying, speaking of the party’s effort to stem unrestrained immigration, particularly from Muslim countries,  “Let them call you racist. Let them call you xenophobes. Let them call you nativists. Wear it as a badge of honor.” On every channel, this was interpreted as if Bannon was endorsing racism, xenophobia and nativism. Naturally this was then reflected on Trump as part of the “Trump is a racist” Big Lie that Democrats and the news media push virtually every day.

Bannon has certainly made testaments at other times that raise a rebuttable presumption that he is a racist, but this wasn’t one of them, and the fact that so many journalists would intentionally represent the statement to the public as if it was tells us either that they can’t be trusted to analyze news events, or that they can be trusted to spin them to advance an anti-Trump narrative even when it defies language and reality. From NBC in a typical fake history description: “Bannon’s appearance in France was part of a European tour as he seeks an international platform for his closed-borders, anti-foreigner message that helped Donald Trump win the U.S. presidency.”  Trump did not advocate “closed borders,” nor was his platform “anti-foriegner.” That was the dishonest characterization of “America should enforce its immigration laws” by Democrats and the allied news media.

The words Bannon referenced have been part of the ongoing efforts to silence and demonize legitimate positions that oppose progressive cant, such as condemning rather than welcoming illegal immigration. What  Bannon was obviously saying —and I do mean obviously—is “Don’t let their reflex race-baiting and demonizing tactics discourage you or deter you. Calling sensible immigration laws “xenophobic” is a desperate lie. Calling it racist is a lie. Calling it nativist is a lie. Recognize that their tactics mean you are winning the argument. Be proud, not intimidated.”

The fact that many of those he was addressing may be racists, xenophobes and nativists doesn’t change the meaning of what Bannon said. The news media’s job is to report, not read minds.

I could imagine making the same kind of statement to a colleague who has been savaged as a racist on Facebook for opposing affirmative action, or attacked as a sexist for questioning #MeToo tactics, or called a “Trump apologist” (or a Bannon apologist) for demanding fair and honest treatment from the media for politicians regardless of who they are. “Be proud that they are stooping to name-calling. It means they can’t rebut you on the merits.”

Oh: Bannon also said, “History is on our side.” This really upset the “journalists,” because everyone knows that history is on their side. Continue reading →

The Other Alleged Collusion Scandal: Baseball’s Unemployed Free Agents

/ Jack Marshall / 45 Comments

Major management-labor troubles are brewing below the surface in Major League Baseball. With the 2018 Spring Training camps opening in a few days, over a hundred free agents remain unsigned, including many of the best players on the market. The Players Association is preparing to open a special training camp just for all the unsigned players, and shouting foul. They are alleging illegal collusion among the team owners to keep salaries down.

A lack of signings on this scale has never happened before, and agents and their player clients are increasingly hinting that dark forces are afoot. Fanning the flames are sportswriters and commentators, whose left-wing sympathies are only slightly less dominant than in the rest of the journalism field. The content on MLB’s own radio station on satellite radio has become an almost unbroken rant about how unfair it is that the players aren’t getting “what they have worked so hard for.” The theory appears to be that employees decide how much they are worth, and their self-serving assessments shouldn’t be challenged.

It is not that many of the free agents haven’t offers for their services on the table. It’s not that they don’t have multiple year contracts that will pay them millions of dollars on the table. They do, and thus  many of the unsigned players can substantially fix the bitter impasse by saying “yes.” Oddly, they are finding that public opinion is not substantially in their corner as they choose to bitch instead.

The poster boy for this controversy is, as luck would have it, a player who is sought by my very own Boston Red Sox. He is J.D. Martinez, a slugging outfielder just entering his thirties who had the best year of his life in 2017. Naturally, he wants a large, multi-year contract that will leave him set for life; this is his big and probably only shot. He also has the most aggressive, successful and, in my view, unethical of sports agents,  Scott Boras, who began the free agent auction season by announcing that J.D. would be seeking a contract worth 250 million dollars or more.

The problem is that not a lot of teams can afford such a contract, and those that can are, finally, wising up. Multiple year contracts have a way of blowing up in a team’s face. Analytics are now widely used to allow teams to make intelligent projections regarding just how much a player will add in value and wins. This year, most of the richest clubs are not hurting for home run hitters or outfielders, which leaves the Red Sox, who despite winning their division last year for the second year in a row didn’t hit as many homers in doing so as the spoiled Boston fans are used to, as the most obvious landing place for Martinez. Sure enough,  the team offered Martinez a five year deal reputed to be worth 125 million bucks. No other team has offered anything close, and it is unlikely that any team will. Boras and J.D. still say it’s not enough. They want a sixth year, and more cash. The Red Sox see no reason to bid against themselves, and have said, in essence., ‘There’s our offer. Take it or leave it.’  Somehow the baseball writers and the player see Boston as the villain in all this.

As George Will likes to say, “Well.” Continue reading →

Ethics Quiz: The Marriage Mark-Up

/ Jack Marshall / 36 Comments

Wedding reception

The New York Times published a feature in December exposing how hotels and wedding service vendors typically charge more to couples planning wedding festivities than they do to corporations seeking the same facilities and the same services. Is the result of  gauging, market forces, negotiation inexperience by the happy couple, or something else? Is it unethical?

The article seems to conclude that the vendors are simply taking advantage of purchasers who have no sensitivity to price, especially so-called “Bridezillas.” They want what they want for their perfect day, and will pay whatever it will cost to get it. Are the venders being unethical to take advantage of what is an emotional rather than a rational mindset? After considering whether more price transparency in the wedding industry would help (the author thinks not), the piece concludes,

“Strong consumer preferences — about the flower type, bridesmaid dress, cake decorations, music style, whatever — mean less price sensitivity (what economists refer to as greater demand inelasticity). If the cocktail napkins must be blue, the happy couple will be willing to pay more for blue. So if there are enough brides out there with strong and specific preferences, who want their weddings to be the special day they always dreamed of, that’s going to push equilibrium prices higher, no matter how transparently they are displayed. In other words, the Bridezillas keep prices high for the rest of us.” Continue reading →

The Unforgivable Conflict of Interest: Sports Agents, Robbing Their Ignorant Clients

/ Jack Marshall / 13 Comments
The ethical course is to choose.

The ethical course is to choose.

Sports agents are rich, powerful, and ethically handicapped by inherent conflicts of interest. The first two qualities so far have insulated them from dealing fairly and openly with the second. This is wrong, and has got to stop. For it to stop, it would help if the players, their unions, the sports leagues and the sports media didn’t either intentionally pretend not to see the obvious, or weren’t too biased and ignorant to realize what’s going on.

Four years ago, I wrote about this problem in a long piece for Hardball Times, a baseball wonk blog of consistent high quality.  The specific agent I was writing about was Scott Boras, the king of baseball player agents, but the egregious conflict I flagged isn’t confined to that professional sport; it’s present in all of them. In the article, I argued that Boras, a lawyer, is engaged in the practice of law when serving as an agent and was therefore violating the legal ethics rules, which prohibits having clients whose interests are directly adverse to each other, specifically in the so-called “Zero-Sum Conflict” situation.

A lawyer can’t assist two clients bidding for the same contract, because the better job he does for one, the worse his other client fares. A lawyer can’t sue a defendant for every penny that defendant has on behalf of one client when he or she has another client or two that have grievances against that same defendant—if the lawyer is successful with the first client, he’s just ruined his other clients’ chances of recovery. There is some controversy over whether the legal ethics rules automatically apply to a lawyer-agent like Boras, but never mind—whether he is subject to the legal ethics rules or not when serving as an agent, the conflict of interest he is blithely ignoring still applies, still harms his clients, still puts money in his pockets, and still should not be permitted. Continue reading →

Ethics Hero: Gil Meche

/ Jack Marshall / 2 Comments

[ Finally reduced to hunt-and-pecking blog posts from an Arlington, VA. Starbucks as the result of a still-ongoing power outage at the Marshall home-office, I apologize for an uncharacteristically quiet day.]

All Kansas City pitcher Gil Meche needed to do to collect $12 million in 2011 was to show up, do his best to pitch—which his ailing right arm would no longer permit him to do—and cash the checks. But despite having an iron-clad contract (the last in a long-term deal he signed as a free agent), Meche decided to retire, thus ending the contract and forfeiting the money. Continue reading →

Baseball’s Free Agent Follies: Dumb Clients, Conflicted Agent

/ Jack Marshall / Leave a comment

Baseball’s super-agent Scott Boras has his annual off-season conflict of interest problem, and as usual, neither Major League Baseball, nor the Players’ Union, nor the legal profession, not his trusting but foolish clients seem to care. Nevertheless, he is operating under circumstances that make it impossible for him to be fair to his clients.

This year, Boras has three aging outfielders in his stable, all with some Hall of Fame credentials, all with fading skills, and all without jobs. Their names are Manny Ramirez, Johnny Damon and Andruw Jones. Thanks to a glut of unsigned hitters still on the market, the price for each of these three—once, when they were young, in the 8-figures a year range—is falling fast. According to an analysis by ESPN, only six, and possibly as few as three, possible teams are still looking to fill slots on their rosters suitable for Ramirez, Damon, and Jones, and none of them will sign more than one, if any. Continue reading →