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Baseball Primer Newsblog— The Best News Links from the Baseball Newsstand
Wednesday, August 27, 2008
Scott Boras phoned from California to give this quote: “The Pirates violated Major League Baseball rules and have issued a nearly 600-word statement, made their actions look to be my fault. I think it’s time for the Pirates and Mr. Coonelly to come clean with the fans of Pittsburgh and let everyone know about their dealings with Mr. Alvarez.”
Yinzers rise up to defend Boras? Blaaahhaahhahhaaaaa!!!
s.zielinski
Posted: August 27, 2008 at 07:38 PM | 107 comment(s)
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We know.
I have literally no knowledge that would lead me to be able to make a proper analysis of the above statement, but to a layman it looks pretty difficult to get around. I dunno, I'd love for someone better informed to chime in.
Sure, but it generally implies MLB can lay down the hammer in any way they see fit. Which they can, can't they, with the anti-trust exemption and all that fun stuff?
Is this really necessary?
I assume he means that they submitted the contract past the deadline- which is what the Union is complaining about...
If that's all Boras has on the Pirates he's really pushing in the wrong direction this time
The voices aren't commanding me to do it, if that's what you mean. It's half contempt and half respect for the man. Nobody is better at squeezing every last drop of value out of contracts, for better or worse.
True. Preferred usage is Bora$$.
I know, but I can't tell you.
If his argument is 'MLB extended the deadline, we both signed a deal after the prior (but no longer operative) deadline knowingly, and now I want out of it' that's pathetic and unconvincing.
The real shock is that he didn't wait until the middle of the decisive game of the World Series to announce this.
I think he's trying to get Alvarez declared as a free agent - basically, by the league acting unilaterallly in extending the window of negotiation past that allowed by the CBA, they violated Alvarez' rights under the CBA. At the same time, by signing him to a contract, they've also removed his ability to return to school as an amateur. Thus, the only reasonable thing to do would be to void the improperly negotiated contract and allow him to freely negotiate with any team.
Incidentally, the above is massive speculation on my part.
According to the PIT Post-Gazette, Boras would prefer to re-do the negotiations:
Also from the blog entry:
How come Boras didn't complain about THAT one? [In P-G speak, I think that means Julio Borbon, the OFer - I've always noticed the PG tends to muff more than a few details]
My one business law class has me thinking there's no way a deal covering longer than a year and at $6 million can possibly be valid if it isn't agreed to in writing but that doesn't seem to be the sticking point.
Yeah, but isn't finding a way to get a highly regarded amateur declared a free agent Boras's white whale?
Why doesn't Boras like the deadline anyway, there has always been a deadline of some sort (reporting to class, next years draft), does he think August 15 is just too soon after draft?
I think Alvarez is going to end up with the Pirates and not get any more money.
Why doesn't Boras like the deadline anyway, there has always been a deadline of some sort (reporting to class, next years draft), does he think August 15 is just too soon after draft?
I think Alvarez is going to end up with the Pirates and not get any more money.
Because he was trying to iron out the details (i.e. increase the bonus) on Alvarez's contract. Once thirty days had passed and the Pirates put Alvarez on the restricted list, that changed.
My take is the agents like to use the leaked information of the other players' draft bonuses so they (the agents) can use those figures in negotiations. With a shorter window it's easier for teams to keep the figures under wraps until the deadline has passed.
I just assumed that the extended deadline was a tad "fuzzy." The agreement has to be reached by both parties before the deadline, but MLB isn't going to hold the parties to having all of the paperwork signed because it's just too complex. The same thing happens with trade windows all the time. MLB isn't going to kill a transaction that everyone wants to happen because someone's email server breaks down or something. 99% of the time its not a problem...
Since Hosmer apparently wants to play for the Royals, I'm interested as to how Boras is planning to get PA's deal renegotiated, but without invalidating Hosmer's.
But it wouldn't be dumb, it's genius. This Alvarez kid is dangerous. He might be real good, and cause an expectation that the Pirates will actually spend money on draft picks. If this blows up spectacularly, the Pirates can say "see, we told you so", and go back to signability picks.
That fits much better with your theory than simple incompetence ;-)
Link, plz?
This is why I think the 8/15 deadline was most likely a specifically anti-Bora$ tactic by the owners.
See, you're making fun of me, but it does make sense as a possible tactic they'd use.
My understanding is that verbal contracts are perfectly binding, the only difficulty is in verifying the terms. Art auction for way more than $6M are conducted verbally.
If there was a conference call with MLB on the line that shouldn't be an issue.
I'm only half making fun. Your theory is just plausible enough that I can't outright dismiss it, but it's still a 1 in 1000 chance of being true, so I feel free to make fun of you a little :-)
After all, in the pre-salary floor days, the TB Buccaneers followed a strategy of losing, basically on purpose. They didn't really even try to hide it. The Marlins seem to have hit on the same thing, except they try to win once every 6 years or so.
Of COURSE there was an oral agreement. What party up to a few hours ago acted inconsistently with the idea that there was one? Did anyone contradict the myriad of public reports announcing it?
Scotty the Middleman has now had two marquee players in the past few months -- Alex Rodriguez and the second pick in the draft -- ignore him and accept deals on their own. He can't have his incompetence and relative uselessness exposed for all the world to see.
It's essentially a letter of intent. This happens in business all the time and is pretty standard stuff.
Plus there's plainly a course of dealing among the parties that establishes that an oral agreement before the deadline suffices to beat the deadline.
Also, aren't most of the details of a minor league contract standard?
The only thing that really needs agreement is the signing bonus; or am I missing something?
Nope, not a thing.
...sometimes. There's a contractual doctrine called the statute of frauds, which has (to the best of my knowledge) been adopted by every state in the country, under which certain contracts must be made in writing. One such type of contract is one in which the terms of the contract cannot possibly be performed within one year of the formation of the contract. My uninformed hunch (I'm sure there've been cases on the issue; I haven't bothered to look them up) is that a multi-year sports contract would fall into that rubric. So my hunch is that Miss R. is right.
standard disclaimer: the above is intended to be descriptive only and does not constitute legal advice yadda yadda
But that has nothing to do with whether an oral agreement between the parties before the signing deadline suffices to beat the deadline. Of course, Scotty the Middleman can go scorched earth and try to say that beating the deadline can only be done in writing but he'd be potentially undoing the contracts of a lot more people than Alvarez (since the clubs would be free to renege also). The other agents might not be too happy about that.
Verbal contracts are not binding if they violate the statute of frauds, in which this case, they would (performance to last at least one year). But that doesn't seem to be Boras' point of contention. Which I don't get, because if they did argue the contract violates the statute of frauds, that makes the contract voidable - Boras would have the option of taking the $6 million, or voiding it. The possibility of voiding it gives him leverage. But if he's just saying the contract is void, how can he get more money from the Pirates? They have no contract and the deadline has passed. Alvarez would have go back into the draft, delaying his chance at FA and arb by a year. So I guess he's banking on Alvarez being ruled a free agent, which seems like a long shot at best.
And yes, for the most part, oral contracts are perfectly binding, with some exceptions, including as in post 41. (Also contracts for the sale of real estate, and, under the UCC, some contracts for the sale of goods over $500. Neither of these is applicable.) But as post 42 indicates, the issue here is whether an oral agreement complies with MLB rules, not the legal enforceability of the contract itself.
And every other last-minute contract would be voidable or deemed not in conformance with the deadline.
But if he's just saying the contract is void, how can he get more money from the Pirates? They have no contract and the deadline has passed. Alvarez would have go back into the draft, delaying his chance at FA and arb by a year. So I guess he's banking on Alvarez being ruled a free agent, which seems like a long shot at best.
There's no chance Alvarez will be deemed a free agent since there's an established procedure for players who don't have valid contracts before the deadline.
At this point he's out for only himself and will throw out anything that might work. If he has to lie about some scenario that didn't happen ("Well, Pedro REALLY thought the Pirates were offering $6.3 million ..."), well, that comes as easy to him as breathing.
I confess to having little more than law school, hornbook knowledge of the legal principles and it probably takes a little more here. Wouldn't an established pattern of dealing -- i.e. both parties agreeing through established action -- demonstrating that a valid "contract," even an employment contract for more than a year can be formed the way all amateur draftees' appear to be formed trump the statute of frauds?
If not, maybe Scotty has lucked into something, though I'm not sure what it gets him in the end, since it just means Alvarez is treated as someone who didn't sign before the deadline.
In any event, it's plain as day that the middleman has only his interests in mind, not his principal's.
Where course of dealing -- between MLB and the MLBPA -- could come into play here is in interpreting what the CBA requires to satisfy the 8/15 deadline. But again, that's an entirely separate issue from whether the contract between the Pirates and Alvarez is enforceable. (But nobody is trying to enforce that contract; it's not like the Pirates are suing Alvarez for breach.)
Scawt, quit jaggin' arahnd wit' dat cawntract 'n'at!
Custom is also valid in determining whether the parties intended for their oral agreement to constitute a binding contract.
In this case it doesn't matter (I don't think) because MLB uses written contracts.
This is the part I've been mulling over. It seems the restricted list is the usual recourse for teams when they have a player violating an existing contract. The Pirates have yet to announce intentions to go after Alvarez financially but that doesn't mean they have no right to do so.
If the Pirates believed they had an enforceable contract don't you think they would behave in the fashion they have been thus far?
If your first name was two syllables and your last name was one syllable ending in "Ee", you technically were not subject to the draft.
Lee was initially drafted as the second pick in the 1996 Rule 4 Draft by the Twins, but was declared a free agent by MLB after the Twins failed to tender him a contract within fifteen days of the end of the draft.
For Travis Lee, the old CBA required the team to make a contract offer within 15 days of the draft or else the player would become a free agent. The Twins called Boras/Lee and were told, "Lee's concentrating on the Atlanta Olympics. We'll negotiate with you as soon as they're over."
Of course, as soon as the Olympics were over, Boras said, "The Twins never offered us a contract."
I can see some overlap in the issues if the argument becomes "an agreement by the deadline means a contract enforceable at law by the deadline." But arbitrator says, "Yeah, I agree," what happens then? All 2008 draftees who only had oral Ks by 8/15 go back in the draft? If Alvarez can get out of his oral committment, why not a club? You can certainly envision a scenario where it would want to -- maybe a top guy has proven to be awful in the minors, or has developed a bad arm.
Is that nuts?
That's true, but you're swinging at air: I didn't intend to imply that the statute of frauds was particularly important in this case; I was simply responding to Snapper's post, #32.
edit: Ah, I take it back. In my original post I also wrote: "So my hunch is that Miss R. is right." Shows me for responding too quickly: I meant to respond only to Snapper's post, and wound up agreeing with more than I actually agreed with.
So to clarify: I agree with Miss R. insofar as the statute of frauds would generally apply to contracts like the one at issue here; I disagree with him (her?) insofar as he asserts that the statute of frauds is of great importance in this instance. mea culpa.
I imagine that Hosmer and all other first round picks (besides Aaron Crow) actually has a written contract now, albeit one that was signed after the deadline.
So that's why hookers keep looking at me funny...
No "fire in the belly"- I read that about him somewhere- he had a "surfer dude" personality
Also a 103 OPS+ as a 23 year old 1B ? Here's every 23 year old 1B (from 1980-2008) with 400+ PAs and an OPS+ within 10 points of Lee's rookie year:
10 Darin Erstad 112 605 1997 23
11 Pat Burrell 106 474 2000 23
12 Gerald Perry 104 419 1984 23
13 Brad Fullmer 103 547 1998 23
14 Travis Lee 103 630 1998 23
15 Mark Teixeira 102 589 2003 23
16 David Green 101 478 1984 23
17 Nick Johnson 99 441 2002 23
He did later have a better year- in 2003 with Tampa, and a roughly equivalent year- 2001 with Philly- then he got hurt after 2003. It's not so much that he "tanked" it's that he never developed and had a disappointing career.
They would all be void under the Boras Principle.
That's what I meant in the other thread about Boras approaching these things like a lawyer rather than a broker. He's not in it just to get a deal done as quickly as possible. He actually reads the rules.
EDIT: I see other people responded while I was with a client. But this isn't right:I know it plays into the whole Boras is evil thing, but (a) negotiating has nothing to do with the rule, so there would be no reason that Boras's alleged quote there would be relevant, and (b) it was four players, not two, and Boras didn't even represent all of them.
Sounds like "overlawyering" to me.
Not really. Teams got exclusive rights to a player by doing one simple thing -- tendering them a contract. You can't blame Boras (and the other agents) if the teams were stupid enough not to do that one simple thing.
If that's the case, why is he still talking about keeping negotiations open with the Pirates? The rules say that Aug. 15 is the deadline, so doesn't that mean that Alvarez needs to wait until next year to talk to any team?
Assuming that the union "wins", then yeah.
I still think that Boras was aiming at a nice, quiet shakedown here, and he never dreamed that the Pirates would tell him to #### himself and then take the dispute public.
I'm starting to think that's what happened too, teams and agents (Boras included) were making it a habit of violating the "deadline" and negotiating past it- Boras figured the Pirates wanted Alvarez and he could squeeze a few extra bucks out of them even past the deadline- so long as he had Alvarez hold out on signing the contract.
It was a bad habit, it was in the rules and wasn't being honored - in the real world (ie outside sports arbitration) generally speaking courts are loath to suddenly enforce dormant rules, laws and regulations unless there is some prior warning - a party usually can't suddenly decide to unilaterally enforce a rule that same party had ignored in the past- that's what estoppel is for.
What Boras had going for him was that any course of past dealing he, Boras, had with teams in disregarding that rule was legally irrelevant* - the arbitrator would ask if Travis Lee had any past course of dealing with regard to ignoring that rule- and of course he had not- so he could not be estopped from enforcing a rule that had never been enforced.
*Of course what Boras did was morally and ethically questionable- he knew the rule was ignored- he himself had played along with ignoring the rule- then he sprung- without warning. Compare that with when Marvin Miller advised players to play out their option year and attempt to declare free agency- teams had fair warning they knew that was what some players intended to do.
I still think that Boras was aiming at a nice, quiet shakedown here, and he never dreamed that the Pirates would tell him to #### himself and then take the dispute public.
I'm starting to think that's what happened too, teams and agents (Boras included) were making it a habit of violating the "deadline" and negotiating past it- Boras figured the Pirates wanted Alvarez and he could squeeze a few extra bucks out of them even past the deadline- so long as he had Alvarez hold out on signing the contract.
- i'm REALLY confused here
boras knows who coonelly is/was.
do yall really think he thought he could get his original asking price? or a ML contract without a physical? or even another 200K
boras is NOT stupid. so why would he do all this over 200 measly K??? and why would alvarez agree to this? i can't see how he would get alvarez declared a FA. unless the real truth is that alvarez doesn't really care about the $$$ but he does NOT want to play for the pirates and doesn't want to do the JD drew rejecting philly thing
does anyone think it is possible that it is the pirates who are not keeping their end of the oral agreement?
1: We don't know it was just $200K
2: I suspect that both this year and last year, agents (incl Boras) may have been able to squeeze a few post deadline concessions before contracts were finalized (ever notice how contracts and bonuses many times wind up being different than originally reported? We assume the original reports were wrong- but maybe they weren't...
3: I think it was DMN who mentioned that Boras acts more as a lawyer than a broker- oddly enough We may have had a role reversal here- he was trying to "broker", but Coonelly had the hammer and no compunctions about using it. Also Coonelly may have long since decided that he was not going to negotiate with Boras- he's observed Boras in operation from afar for years and may have decided that the best way to deal with Boras is simply to never move- go over the cliff if you have to, but never move (a tactic Boras has used himself- if his client allows it).
I don't think Boras has ever really faced someone willing to hold to that tactic to the bitter end. (Actually the Phillies did with JD Drew- the difference being that the Pirates don't stand to lose as much as the Phils did- the Phils lost the pick period- the Pirates can get #3 next year- also comparatively speaking the Phils low-balled Drew, whereas the Pirates didn't low-ball Alvarez- or at least not to nearly the same degree)
Indubitably, but in the meantime, Mr. Alvarez is in danger of forgoing a substantial contract, as well as a year in organized baseball.
I don't have any problems with the ethics there: a lawyer is supposed to do what's in his clients' best interest. My problem's a little bit different. If Boras truly waited and "sprung" (which strikes me as completely plausible), then every client he had before Lee that could have taken advantage of the loophole received substandard, indeed unethical, representation.
If that's the case, why is he still talking about keeping negotiations open with the Pirates? The rules say that Aug. 15 is the deadline, so doesn't that mean that Alvarez needs to wait until next year to talk to any team?
He's probably trying to present that as a "middle road" type of solution.
It was in the original article on MLB.com, though it's since been removed, and replaced with a passage about Boras looking to match or exceed the Posey deal (which would be, coincidentally, an extra $200k).
I'd be interested to find out how Boras and other lawyer/agents deal with ethical problems. (Insert joke about lawyers and/or Boras and ethics here.) The way that MLB is set up (small number of individual players all going for the same cash) makes it look like a minefield. You're supposed to be representing your client's interest, but what if you have two competing clients on the market at the same time (like, the best two free agent first basemen?). And the idea of trying to take a stand for future clients by compromising a current client's livelihood is troublesome (as is the converse).
Fun fact: one of my law school classmates is Kobe Bryant's agent (and represents a number of other NBA players). I think he has had to deal with some ethical issues of his own (that's not me trying to be snide -- from what I saw, the guy was a freaking genius).
I've seen nothing, not even Boras' statement that would lead to that conclusion, he's complaining that the Pirates didn't follow the rules- not that they reneged on anything.
Boras deals with them by ignoring them and acting in his own best interest. He's likely done things that could get him disbarred.
If you have two clients with conflicting interests (like the two first basemen), you counsel one of them to get another lawyer. In fairness to Boras, it's more a fundamental flaw in the MLBPA agent system than with him in particular. It's hard to ethically be both player agent and lawyer.
And, frankly, I don't know why players don't just hire good sports law attorneys. I'd rather pay a good lawyer $750+ per hour than pay an agent a percentage of my salary.
They do that in the NBA, because the cap (and various mid-level exceptions) firmly dictates the price which will be paid for many of the top free agents - there's no real negotiation, other than the number of years. In MLB, where the salary (and bonuses, and perks) that a player can claim is a lot more fluid, it probably makes more sense to have an agent who has dedicated himself to studying that specific industry.
Completely true, and most of the NBA guys who hire a lawyer for their NBA contract negotiations keep an agent around specifically for the non-NBA contract stuff - both in terms of endorsements, media relations, non-contractual interactions between the player and front office, and so on.
- but again, the guy boras is dealing with is coonelly and he oughtta know ALL about coonelly. a nice quiet shakedown??? it is just really tough to believe.
IF it is all about getting rid of the aug 15 deadline, how could this help his client? that is the real question because it is obvious that alvarez IS going along with it. suppose boras got the entire contract called off. he can NOT seriously think that coonelly will give him more $$$ and since alvarez can't play college ball, he's got to go to the indys/back in the next draft.
i don't think boras is dumb enough to do the tommy tanzer thingy AND he is a LOT more experienced and he HAS to know the media and owners are just WAITING for him to fukkkup.
i don't think that alvarez would agree to be a curt floyd/andy messersmith for future generations
so the ONLY thing i can think of that makes sense is that something is wrong with alvarez wrist and so they are using a smoke screen to put off the physical
- sugar bear,
i SERIOUSLY doubt that boras has ever done anything that could get his azss disbarred. he KNOW bettern anyone else that mlb is drowning in $$$ and they would instantly spend whatever is necessary to get rid of him if he gave them even the teeniest sliver of something to grab at
I'm quoting somebody else here, but Alvarez would do that if Bora$ told him, 'look, I think I can get you made a free agent and get you at least $35 million guaranteed. And if it doesn't work out, I'll give you $3 million out of my own pocket.'
All Bora$ has to do is convince Alvarez that if he goes along with this, I can make you a free agent. The difference between $6 million guaranteed and $40 million guaranteed is large.
Also, I seem to recall Andy Messersmith's case worked out pretty darn well for him.
yes, But Curt Flood's didn't.
Boras is probably telling Alvarez, look, I'm not Tommy Tanzer, I've done this type of thing before, the worst thing that has ever happened to one of MY clients is instead of free agency or a huge increase in their offer they go back into the next year's draft- and that worked out well for guys like JD Drew and Luke Hochevar.
You don't need to be a lawyer to be a MLB player agent, so Boras could be disbarred and still continue his business.
There was an attempt a couple years ago to have him disbarred in Texas, due to the negotiations surrounding A-Rod. Essentially, he was accused of behaving unethically, in that he may have lied about other offers he had for his client's services.
I'm pretty sure it didn't go anywhere.
He could, but getting disbarred would be a huge blow to his credibility, and would undoubtedly hurt his ability to attract clients.
Which would be pretty funny, since Boras was Harrington's second agent, after Harrington fired Tanzer. Boras is the guy who told Harrington to turn down the Padres' $1.25M offer the second time he was drafted and pitch indy ball instead. Which worked out great for him, as we all know.
i don't think boras coule get alvarez a FA, and not just a renegotiation or even nothing and back into the draft after a year in the indys. i don't think the agents can just give clients $$$
it does not make cents to me (hahahaha)
David Nieporent Posted: August 28, 2008 at 04:02 PM (#2920653)
If lying could get an attorney disbarred, there wouldn't be enough left in the U.S. to serve the population of Bozeman, Montana
- i remember once i told you that you got no sensa yuma.
i was ronggggggggg
I have my doubts too, but it's not me or you Bora$ needs to convince to be able to go ahead with his attempt at bringing down the 8/15 deadline or perhaps even the draft itself; he just has to convince Alvarez of it.
Of course they can't. That would be totally wrong. And politicians can't take bribes from special interest groups or wealthy individuals, either. There are ways to make these sorts of things either look technically legit or never come to anyone's attention.
Actually Tanzer was still Harrington's agent when the Padres drafted him- he didn't fire Tanzer until some 5-6 months after that second draft.
Tanzer was the one who sent Harrington to the Northern League - where he got torched further eroding his value- Boras criticised that decision- afterall it was one thing to send a 21/22 year old JD Drew to the very hitter friendly Northern League- it was quite another to send a 19 year kid who hadn't pitched in a year there.
Harrington's bonus offer his first draft with Boras reputedly ranged from $5,000 to $20,000 - it was then that Boras advised Harrington that he might as well stay in Indy Ball to get himself into pitching shape- but Boras at least sent him to an easier league (American Association).
He had rotator cuff surgery a year after that...
I'm not sure myself, but I think it goes something like this: Boras tips off the Players' Association that the Commissioner's Office has unilaterally violated the CBA, MLBPA files a grievance, and then an arbiter finds for the MLBPA. In this scenario, part of the remedy is the discarding of the deadline or the draft. That last step seems pretty tenuous, though.
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