Our featured pro this month is Rick Oliver, president of RTO Sports Management and a baseball sports agent.
Rick, being a professional sports agent may be one of the least visible activities in professional baseball. The agent’s role is generally public only during high profile contract negotiations for super stars. So, how do agents actually function in the world of baseball; what limitations do the union and leagues impose on agents? How do you interact with the players you represent?
“Agents do tend to be unknown to the general public. But, yes, when a player like Alex Rodrigues, ‘A-Rod,’ of the New York Yankees signs a 10-year deal for around $225 million, the agent’s name may make headlines. Otherwise, we tend to toil in anonymity,” Oliver said. “But, let’s face facts. The story is about the players, not their agents. You my be surprised to hear there are about 200 active agents, nationally, working year round putting together deals for both unknown and big name players.”
Oliver went on to identify four areas where agents devote a lot of effort.
“We start at the high school level, where a player is eligible to join the June draft, but only after becoming a senior. Next in line are the college players. They are also protected by rigid rules and cannot join the June draft until they are either a junior or 21 years old,” he said. “NCAA guidelines do allow an agent to become a ‘family adviser’ prior to eligibility, but absolutely forbid the player to sign with an agent.”
He continued describing the remaining two areas.
“Within the ranks of the minors and majors, players are always seeking agents to represent them. Agents are only allowed one-year representation deals with the players. Both the player’s union, MLBPA, and the team owners, MLB, decided to install this rule to protect the players.”
“Free agents” are the last area, and include foreign players not eligible for the June draft. Incidentally, Oliver mentioned that most foreign players enter the leagues as free agents — an important portal, since at least 33 percent of current Big League players are from Latin America alone. Also, great players from Japan are now appearing in greater numbers.
I asked Oliver how agents discover which players are of interest to the teams.
“We attend key tournaments, the showcase events, making evaluations of the players, pour through publications devoted to baseball, trying to identify prospects, and do heavy-duty networking with contacts in the business — excluding the team scouts, who are not normally allowed to discuss prospects with agents.”
None-the-less, Oliver gives the team scouts a lot of credit.
“Agents should develop good relations with the team scouts since they are so important in the discovery process.”
Every MLB team has literally dozens of scouts looking at players all over the world. The scouts often watch players for years, from Little League through college, assessing their progress and rating their ability to eventually to play in the big leagues.
Agents and scouts look forward to a couple of showcase events each year. Major League Baseball sponsors summer play at Cape Cod, where the best college players from around the country compete. Ten teams play throughout summer, providing great baseball games and a chance to exhibit their talent for very attentive scouts and agents. Top-prospect high school players also meet in tournaments, including a big event in Jupiter, Fla. In Jupiter, around 400 of the best high school players compete for a week, again under the close scrutiny of Major League scouts and, of course, agents.
Oliver participates in the Major League draft each year.
“Here is where the real action occurs. The players we sign are entered into 40 to 45 ‘rounds’ consisting of 30 players per round. Players in the top five rounds are normally the hottest prospects for the teams.”
Competition is intense as teams try to draft the players and then sign contracts. “As an advisor, I have to deal with the players and their families explaining the various offers from competing teams. I also deal with team representatives to get the best contract for the players I represent.”
Keep in mind that bonuses and salary offers tend to follow a pattern established in the prior year, so an advisor’s job is to get terms at or above the base for his players.
I couldn’t resist asking Rick the million-dollar question: At what point in a player’s career do the big contracts come into play?
“Agents actually negotiate a new contract each year for their players; however, they are eligible for salary arbitration after three years of Major League play. At this point, their salaries can increase significantly.”
The really great players are the stars every team wants, and the price is usually high. Oliver continued, “Although this is a critical step in the players career, it really just sets the stage for ‘free agent’ status.”
Players become ‘free agents’ after six years of Major League service. We all know that teams gain and lose players in the free agent market. The Orioles lost Mike Mussina to the Yankees through free agency several years ago by not meeting the market price for him.
What does Oliver like best about being an agent, and what does he do for his players?
“I tend to get involved in their lives. Watching a player progress from essentially sandlot baseball to the Majors is a thrill. I played in the Minors for eight years, so I have a personal knowledge of what my clients experience.”
Educating a player about the negotiation process and potential contracts is a big issue. Some of the problems Oliver handles include helping guys when they get homesick. Some don’t speak English, which can be hard, especially when traveling. Most players need financial advice, so Oliver gets them good advisers. He has helped the “lovelorn” keep their head on straight.
“One of the greatest challenges is keeping players healthy,” he said. Every good agent must have a team of top-notch physicians available to help when an injury or illness occurs.
According to Oliver, baseball is a strong character-building sport, good for the body and mind.
“Playing well depends upon good mental attitude, great conditioning, and strong determination.”
Regarding his responsibility to his clients, “The players I represent can depend upon me to do my best for them in all situations. But, I also depend upon them to give their best every day on and off the field – period.”