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Tuesday, August 26, 2008

Pitt Post-Gazette: Kovacevic: Getting antsy for Alvarez

Scott the Pest at work?

Ten full days have passed since the team and its first-round draft pick agreed to terms on a $6 million signing bonus, but Alvarez has yet to report for his physical or introductory news conference. And there remained, as of late yesterday afternoon, no indication when he will.

Alvarez’s perceptible indifference — belligerence? — matters because

Alvarez has not physically signed his contract, but his verbal consent minutes before the Aug. 15 deadline essentially made him a team employee, as $3 million of the bonus was payable immediately.

It’s unclear what present or future value Alvarez derives from this situation. I can’t think of any. I thus wonder if prospective Boras’ clients realize that their and Boras’ interests differ?

s.zielinski Posted: August 26, 2008 at 04:24 PM | 26 comment(s) Login to Bookmark
  Tags: business, pirates

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   1. The Kids Are Enright (1k5v3L) Posted: August 26, 2008 at 04:51 PM (#2916487)
My guess is Boras feels Alvarez might fail his physical right now
   2. kubiwan Posted: August 26, 2008 at 05:07 PM (#2916511)
So can someone tell me what Boras's interest would be in doing this? Just a power play to show all who is in charge?
   3. s.zielinski Posted: August 26, 2008 at 05:07 PM (#2916512)
So far as I know, Alvarez recovered from his hand injury and did not suffer a new injury.
   4. s.zielinski Posted: August 26, 2008 at 05:19 PM (#2916533)
2:

Boras reportedly did not care much for the 8.15 deadline. He may believe that the deadline has given teams too much leverage in these negotiations. Both Weiters and Alvarez signed for less than Boras' asking price. Both, presumably, were Boras' marquee players in their respective draft classes. If Boras can't get his clients deals which exceed the market rate for a specific kind of player, then why would prospective Boras clients choose him over another agent? In other words, Boras not only competes with the teams with whom he negotiates contracts, he also competes with the other agents for prospective clients.

Naturally, Alvarez has no rational motive to defend the interests of Boras' future amateur clients.
   5. Greg Schuler Posted: August 26, 2008 at 05:31 PM (#2916553)
Wow - Boras is already greasing the skids for Alvarez to leave town. Amazing.

Although, until Justin Zent shows up, you could work this into his grand conspiracy theory. The Pirates "signed" Alvarez, but then for some reason or another, they don't actually sign him, get back the bonus money and voila, back to square one.

How is a verbal consent legal in this instance? Shouldn't there be a signed contract?
   6. MM1f Posted: August 26, 2008 at 05:50 PM (#2916571)
How is a verbal consent legal in this instance? Shouldn't there be a signed contract?

The deadline makes it necessary for verbal consent to apply at least temporarily, so teams and Boras can call the commissioner's office and say "He has accepted the deal" before the deadline hits and both sides lose the ability to sign.

With this Alvarez case though, the story I read said that they had agreed on every word in the contract, except for signing bonus number, and when Alvarez said "I accept" on the phone they immediately faxed out a copy with Alvarez's bonus typed in and all Alvarez had to do was sign it and fax it back... all the nitty gritty language was already ironed out and agreed to.

Go figga
   7. Russ Posted: August 26, 2008 at 05:54 PM (#2916574)
This is pretty retarded on Alvarez's part. He has pretty much lost all of his leverage, because I'm guessing the Pirates can hold onto this rights now indefinitely (after all, he agreed to a contract). Now Alvarez is just flushing money down the toilet by delaying how soon he could reach the majors.

Loads of stupidity on the Alvarez/Boras end right now.
   8. JPWF13 Posted: August 26, 2008 at 06:02 PM (#2916584)
So can someone tell me what Boras's interest would be in doing this? Just a power play to show all who is in charge?


He's still negotiating terms with the Pirates- he wants to see how far he can push it- he figures the Pirates really want Alvarez and so are not gonna go to the Commish and say, "Ok we didn't sign Alvarez by the deadline afterall, I guess we get a compensation pick next year"

After all, Boras got to be where he is today by seeing how far he could push things.

If I'm the Pirates, unless I think Alvarez is really all that, and that the chance of him turning out like Bush/Montenez is zilch... I'd really have to be thinking of cutting bait at this point.
(You know just quickly scanning recent draft histories- position players taken in the top 3 in recent drafts have really turned out pretty well all things considered- the complete busts have been rare.)
   9. RoyalsRetro (AG#1F) Posted: August 26, 2008 at 06:02 PM (#2916585)
I had no idea you could come to verbal agreement by the deadline. For some reason I thought you needed to fax a written contract to the Commish's office. Interesting.

How is a verbal consent legal in this instance? Shouldn't there be a signed contract?


Its not a legal contract, so it could be challenged in court. However, I don't see any reason for Alvarez to challenge it, at least not yet. But the Pirates probably should get it in writing as soon as they can.
   10. The Kids Are Enright (1k5v3L) Posted: August 26, 2008 at 06:05 PM (#2916589)
Did the Pirates actually send any money to Alvarez/Boras yet?
   11. s.zielinski Posted: August 26, 2008 at 06:16 PM (#2916597)
Re: 10:

$3 million of the bonus was payable immediately


If Alvarez/Boras cashed the check....
   12. Bring Me the Head of Alfredo Griffin (Vlad) Posted: August 26, 2008 at 06:17 PM (#2916598)
"For some reason I thought you needed to fax a written contract to the Commish's office."

They notified the commissioner by e-mail, so I guess any type of written notice counts.

"Did the Pirates actually send any money to Alvarez/Boras yet?"

According to the article, about half the signing bonus. So around $3M.
   13. ECBucs Posted: August 26, 2008 at 06:18 PM (#2916601)
Boras likes making the other side sweat (he owns stock in Proctor and Gamble).

He probably told Alvarez that he was not going to play in minors this season so he can relax until Fall Instructional League.
   14. Toolsy McClutch Posted: August 26, 2008 at 07:43 PM (#2916688)
I'm sure this will make those Pitt fans warm up to him quickly.
   15. Rocco's Not-so Malfunctioning Mitochondria Posted: August 26, 2008 at 08:01 PM (#2916712)
If Alvarez/Boras cashed the check....


Yeah, I'm sure they sent a check for $3M.

Whether or not there's an actual contract, Pittsburgh can probably argue promissory estoppel at this point.
   16. J. Michael Neal Posted: August 26, 2008 at 08:41 PM (#2916769)
How is a verbal consent legal in this instance? Shouldn't there be a signed contract?


A verbal agreement is a valid contract, unless it falls within the statute of frauds. I don't see any reason that this contract would do so, so the verbal agreement is binding. The reason verbal contracts are a problem isn't because they aren't binding; it's because they are hard to prove. That's also not an issue here.

One contract law class can make someone dangerous.
   17. JPWF13 Posted: August 26, 2008 at 09:17 PM (#2916808)
A verbal agreement is a valid contract, unless it falls within the statute of frauds. I don't see any reason that this contract would do so, so the verbal agreement is binding.


More to the point- if the Pirates sent a written contract to Alvarez/Boras- along with a check for the bonus money and that check was deposited- or wired the money somewhere pursuant to Boras/Alvarez instructions- the act of accepting money would be seen as an act confirming the written contract sent along with the money-
   18. Van Lingle Mungo Jerry Posted: August 27, 2008 at 06:31 PM (#2918799)
Jim Callis reported in his ESPN chat this afternoon that Alvarez has been placed on the restricted list and Boras is claiming that he signed after the deadline and wants to renegotiate.
   19. DKDC Posted: August 27, 2008 at 06:44 PM (#2918826)
The Pirates sound pretty pissed.

Connelly Press Release

At the Pirates' request, the Office of the Commissioner today placed Pedro Alvarez on Major League Baseball's Restricted List. The Pirates were forced to request that Pedro be placed on the Restricted List because we were informed by his agent, Scott Boras, that Pedro will not sign the contract to which he agreed on August 15. Boras further informed us that Pedro will not report to the Club unless we renegotiate his contract and agree to pay him more than the $6 million signing bonus to which he agreed.

...

The Pirates made several attempts to commence negotiations immediately following the draft and were willing and ready to agree to pay Pedro a $6 million signing bonus from the very outset. Predictably, however, Mr. Boras refused to engage in any negotiations at all until shortly before the August 15 deadline and even then an agreement was reached only after Pedro took control of the negotiations.

Regrettably, we are not surprised that Mr. Boras would attempt to raise a meritless legal claim in an effort to compel us to renegotiate Pedro's contract to one more to his liking. We are, however, disappointed that Pedro would allow his agent to pursue this claim on his behalf. Pedro showed tremendous fortitude and independent thinking when he agreed to his contract on August 15.

The Office of the Commissioner has assured us that we have a valid contract with Pedro and that it will vigorously defend any claim to the contrary. Despite our disappointment, we continue to believe in Pedro Alvarez the person and the baseball player and remain excited to add Pedro to our system. We will sit down with Pedro and his family as soon as Mr. Boras' claim is rejected to chart a new and much more productive start to Pedro's career with the Pittsburgh Pirates.
   20. RoyalsRetro (AG#1F) Posted: August 27, 2008 at 06:49 PM (#2918832)

A verbal agreement is a valid contract, unless it falls within the statute of frauds. I don't see any reason that this contract would do so, so the verbal agreement is binding.


I flunked my first bar exam, but wouldn't it fall under the statute of frauds under "performance to last the duration of at least one year"?
   21. TerpNats Posted: August 27, 2008 at 06:55 PM (#2918849)
The release also states (italics mine):

"The Pirates are confident that the contract reached with Pedro Alvarez was agreed to and submitted to Major League Baseball in a timely fashion and properly accepted by Major League Baseball. In fact, the contract between the Kansas City Royals and Eric Hosmer, another Boras client, was submitted to the Office of the Commissioner after our contract with Pedro was submitted. Mr. Boras is apparently satisfied with the $6 million bonus that he secured for Mr. Hosmer and has not challenged the validity of that contract. Mr. Boras has been informed that if he pursues a claim that our contract with Pedro was not timely he puts Eric Hosmer's contract with Kansas City in jeopardy."

Maybe this is what Boras wants to do, ultimately having both contracts invalidated so his clients can go to wealthier, more attractive franchises. This had better be resolved soon, because if Boras represents Stephen Strasburg, things could get pretty wild next summer (speaking as a Nationals fan, and assuming they wind up with MLB's first pick next June).
   22. Van Lingle Mungo Jerry Posted: August 27, 2008 at 06:56 PM (#2918852)
I flunked my first bar exam, but wouldn't it fall under the statute of frauds under "performance to last the duration of at least one year"?


Perhaps Boras is arguing for application of the fertile octogenarian exception.
   23. RoyalsRetro (AG#1F) Posted: August 27, 2008 at 07:06 PM (#2918864)

Perhaps Boras is arguing for application of the fertile octogenarian exception.


Wrong thread. The John McCain jokes are in here.
   24. Toolsy McClutch Posted: August 27, 2008 at 07:36 PM (#2918917)
Wow, I think this is the most interesting non-field incident to happen for monthes.

I can't understand Alvarez passing on a several million dollar check and earlier FA-hood for I'm sure what will amount to a few (hundred thousand) dollars. I won't be stupid enough to ascribe any thoughts to PA, but I'm baffled.
   25. JPWF13 Posted: August 27, 2008 at 07:37 PM (#2918924)
Maybe this is what Boras wants to do, ultimately having both contracts invalidated so his clients can go to wealthier, more attractive franchises.


Could be, but all his old loopholes have been closed on him- maybe he thinks he found a new one- but all Boras would achieve would be to get his clients thrown into next year's draft- not declared FAs.

I also thought that Boras is very careful not to renege on a contract- he has in the past told MLB players that he would not renegotiate signed contracts - key word being signed-

Remember Hochevar? He got antsy, dumped Boras, got a new agent- verbally agreed to a contract with the Dodgers- Boras got back in, got Hochevar to renege - and Hochevar actually got more bonus money the next year because Moore had a brain fart.

It seems that Pedro blinked- not Boras- and Boras has reasserted control- which likely means that the Pirates public pronouncements during negotiations were meant to get their message to Pedro without Boras screening them.

Boras is probably willing to risk Pedro getting screwed just to tell MLB teams that they can't do that to him (Boras).

Where does this go now? Arbitration?
   26. Pops Freshenmeyer Posted: August 27, 2008 at 08:06 PM (#2918960)
I flunked my first bar exam, but wouldn't it fall under the statute of frauds under "performance to last the duration of at least one year"?

Yes and it's too high on dollar amount; it fails both prongs.

Anyhow, none of that matters because the baseball industry is governed by written agreements so it would be nearly impossible to argue that both parties intended for their words to be a formed contract.

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