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

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

[ 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

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

Stupid Unethical Reporter Tricks

If true, what Sports Illustrated reporter Jon Heyman is being accused of by his colleagues is a major ethics breach. The context—a free agent baseball star’s negotiation with teams competing with each other for his services—is a narrow one, but it challenges us to ponder how often the same dishonesty occurs in other news reporting contexts. Continue reading