Agents, Fees, Contracts and Pay

by robertmelvin on Feb 24, 2005 10:59 PM PST

I've had some questions bouncing around in my head for awhile, and I am sure there are AN guys and gals out there with opinions, and maybe some answers.

1. How important are agents? Why does everyone now need an agent? Why does Ken Macha need an agent? [besides preventing BB from stealing his pants.] Did Billy Beane have an agent when he negotiated with the A's, or have an agent on his ill-fated (thank God!!) one-day stay in Boston? When did all this agent stuff start, anyway?

2. How much percentage do agents generally receive from each contract they negotiate? [I heard Dave Stewart at Fan Fest jokingly say his fees are 4%, not 5% in an off-the-cuff remark during a Q & A session.] Do they get a percentage of bonus amounts also? Are agent percentage fees fixed by MLB, or the players' union, or can they be any percentage? Are there guidelines on agent's fees in the standard MLB contract? Is there even a standard MLB contract? If so, is it published anywhere on line?

3. How often do players get paid: Weekly, Bi-Monthly, Monthly? Once the player gets paid, does he then turn around and pay his agent his percentage from each of his salary payments? Are salaries paid on a 12 month basis, or based on the 6 month baseball season, i.e. if a player's salary is $1.2 million, would he get $100,000 each calendar month, or $200, 000 each month during the season?

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Agents

I think the Agents are paid x% of the contract as the players get paid, and the players I think are paid monthly during the season.

The Cut-off limit of how much an agent can make is 5%. I am not sure how much an avg agent would get, but Im guessing 3-4% then.

As for why you would need an agent, its because the contracts are pretty damn confusing. There is also people wanting to use your image, sponsors, marchandise, etc. It adds up, and its better for hte player/actor/whomever to focus on what they are being paid to do rather then the contract.

Also Agents repersent many different clients, not just one, so its not like the Agent is slacking off all the time. An Agent is needed especialy for these large contracts. I mean, even the guy making the league min still makes a lot more most people make. $150-300k is a lot of money remember.

Its sort of the same thing as why do you hire someone to do your taxes? Because its really damn complicated and if you dont know what you're doing, your screwed.

"I still stand firm that Johnny Damon is really Jesus, The Unfrozen Caveman Lawyer..."

by Zonis on Feb 24, 2005 11:25 PM PST reply actions

actually

MLB has no limit to the perecentage cut an agent can take. The NBA has a 4% max set and the NFL a 3%. However, both MLB and NHL do not regulate how much an agent can charge (similar to salary cap structure in these leagues as well)

by faninphilly on Feb 25, 2005 7:33 AM PST up reply actions

send

lawyers, guns and money

"What I'm trying to do is set our pitching up for five years," said Beane

by Satchmo22 on Feb 25, 2005 7:05 AM PST reply actions

Pay and Stuff

Almost all players get paid twice a month during the season, although I know of one or two who got paid twice a month throughout the entire calendar year.

There is no limit on agent fees except that a player's salary minus his agent's fee cannot be less than the minimum salary. Agents get a higher fee for endorsement contracts (sometimes as much as 25%) than for playing contracts.

by rsquared on Feb 25, 2005 8:35 AM PST reply actions