November 19, 2013

AGENT BIAS

Scott Boras is a brash agent who speaks his (bias) mind.

In a recent ESPN story, he lashed out at several clubs, including the Cubs.

Despite the Cubs being15th in payroll this year($101 million), Boras said the Rickets family, which bought the team four years ago, has put too much emphasis on the redevelopment of Wrigley Field and not enough on major league payroll.
"You're developing the infrastructure, but fans don't come to see seats, grass, cement. They come to see players," he said. "They've done a great job in the draft and development and they've got a really good core of young players coming, but it is just not what's expected when you have a (family) buy a major-market club."

The agent speak is that more of the $500 million redevelopment project should go to costly free agents whom he represents than in revenue generating fixtures.  Boras and other agents have to be realizing that the free agent market is shrinking: more teams are spending money on minor league signees and international players. The days of A-Rod $250 million deals are all but over.

But then, Boras flipped on his own logic in the ESPN article.  Boras compared the Rays' situation to Charles Dickens' "Tale of Two Cities," saying there was "the one they're in and the one they should be in." The Rays repeatedly have said Tropicana Field in St. Petersburg is inadequate, and they drew a major league-low 1.5 million at home despite reaching the playoffs for the fourth time in six years.
"They need a new ballpark. They need to address that," he said. "But certainly the bell's been answered by the organization as far as putting a product on the field that would normally attract fans."

So, the Cubs are spending too much money on real estate development costs, while the Rays (and the community) have not spent enough money on the team. A new Rays park would generate more revenue which would increase the team payroll budget which means Boras and his clients could get raises in the future.

Boras joked about the Astros, who traded veterans and cut payroll to around $29 million -- $13 million less than any other big league team. Houston went a team-worst 51-111 and the Astros' 324 losses over three years matched the 1917 Philadelphia Athletics for third most in major league history.

"The Astros," he said, "they're like Disneyland. If the kids come, it's a great attraction."

The Astros, under new ownership, paid dearly for the franchise. The move to the AL West would be a costly broadcast revenue issue for the team going forward. The owner decided to tear down the organization and build it up from scratch which meant cutting the major league payroll to bare bones and signing high quality prospects. (This is actually the same plan the Cubs have started, except for the deep cuts at the major league level).  The Astros have decided to be bad for many years in order to save money. There are no high profile free agent signings in Houston's future.