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Shocker: Scott Boras doesn’t like the Yankees’ 2014 payroll plan

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Via Jon Paul Morosi: Scott Boras is not a fan of the Yankees’ plan to get under the $189M luxury tax threshold, and he even went as far as calling the tax a “reward” for clubs generating huge revenue. “Are you going to put your brand at risk, when your brand is having more superstars than anyone else? Superstars are good for business. Superstars make money for franchises and their television networks,” he added.

Of course, superstars also make money for Scott Boras, which is something he neglected to mention. The plan to scale payroll back theoretically takes away a potential suitor for Boras’ clients, which limits his negotiation power and by extension, his earning potential. That’s pretty much the only reason he doesn’t like it, he doesn’t care about the Yankees brand. I don’t like the idea of the team scaling back payroll, not with the New Stadium just opened a lucrative new television deals being signed, but it would be kinda awesome if it was just one big negotiating ploy.

Boras on Cano extension talks: lol j/k

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Via George King, Scott Boras tried to play off rumors of a new deal for Robinson Cano as a joke. “[Brian Cashman] and I have talked three or four times in the last three days,” said Boras. “My statements were in jest. Cash always returns my phone calls. My conversations with Cash about Robinson have nothing to do with the options. We fully expect the options to be exercised.”

The two club options for 2012 and 2013 ($14M and $15M, respectively) were negotiated into Cano’s current contract by his former agent, Bobby Barad. Boras won’t collect any commission for Robbie until he negotiates a new deal, which frankly is something the Yankees should at least consider right now. A six-year deal is much easier to swallow from ages 29-35 than 31-37. Anyway, it’s kinda funny that Boras tried to play this off as a joke, the guy didn’t get to where he is by making statements in jest to the media. Everything he does is calculated.

Report: Boras looking to rework Cano’s contract

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(AP Photo/Bill Kostroun)

According to George King of the New York Post, Scott Boras has recently tried to get in touch with Brian Cashman about seeing the Yankees drop Cano’s two options for 2012 and 2013 (worth $14M and $15M, respectively) and work out a new contract at market value. For their part, the Yankees have indicated that they’re very, very unlikely to rework their deal. Boras likely knew this would happen, which is why it’s just a little bit odd to see him publicly request it anyway. It’s also why, perversely, a deal might be possible.

On one hand it isn’t odd. As Mike noted earlier this morning, Boras only gets paid vis-à-vis his relationship with Cano when Cano signs a new contract. On the other hand, Boras knows that the Yankees have little incentive to pay Cano more now and that Cano has little leverage to force them to do so. A market value contract for Robbie is likely a non-starter for the Yankees. While $29M over two years isn’t exactly a Longoria-esque bargain, the organization simply has no incentive to replace his current salary with a much higher salary right this instant.  Cano’s salary demand won’t likely be any higher a year from now than it is right now, even if he has another monster year in 2012.

As such, Boras could simply be saber-rattling and letting the Yankees know he expects a big payday for Cano any time between now and two years from now. Boras also could be hoping that the Yankees would be silly enough to tear up Cano’s current deal and pay him at market value. After all, it doesn’t hurt to ask. Alternatively, he could be amenable to working out something in the middle, slightly below market value rate, right now. This would certainly represent a departure from Team Boras’ modus operandi. Boras has typically been known for pursuing a very aggressive year-to-year strategy with clients under contract and then pushing them to the biggest payday possible in the unrestricted free agent market. Look no further than Prince Fielder for an example. This could simply be posturing for a new deal two years from now, but if it isn’t and his demand for a new deal represents a negotiating strategy designed to get Cano a new deal this offseason, it would be advantageous to see the Yankees pursue a deal.

Meeting Boras halfway and working out a long-term extension solves a lot of problems at once. It provides Cano the long-term stability and big-time payday he’s looking for, and gives Boras his new contract commission, not that the latter is anyone’s concern. From the Yankees’ perspective, it allows them to lock Robbie up through his prime and into his mid-30s at a slightly below market rate. A reasonable guess as to a new extension for Cano might be replacing his 2012 and 2013 options with a six-year, $100M deal. This would pay Cano $16.67M per year through the 2017 season. Mike threw around the idea of a six-year, $120M deal back in August, an average of $20M per season.

If the Yankees have designs of keeping Cano around for the next half-decade, it would make sense to pursue this sort of deal now. It’s better to own Cano from 2012 through 2017 at $16 million per year than it is to own Cano from 2012 and 2013 at $14 and $15 million per year, respectively, and then from 2014 through 2019 at $20 million per year, assuming he can get that on the unrestricted free agent market.  Not only do they Yankees get a slight discount on the salary, but they also avoid paying him into his late-30s. It hardly even needs to be said that it’s dangerous to guarantee double-digit salaries to players throughout the inevitable decline that occurs as they enter their late thirties. If the Yankees can avoid that with Cano by paying him now and figuring out what happens after 2017 later, then they’re in a better and more flexible position than they would be if they signed him to the same deal two years later.

There’s risk, of course. Cano could regress back to the player we saw in his 2008 campaign and prove to be a poor value for the money, but it’s hard to find anyone who expects that to happen. Cano is among the very best players in the game, and he’s easily one of the best players on the Yankees.  Working out a deal now might be best for all parties. Something tells me it won’t happen, though. Boras is good at getting his clients the very best of paydays, and he may advise Cano to sit tight and wait until the terminus of the 2013 season if the Yankees aren’t interested in paying market value right now. They shouldn’t, of course, and they won’t. Brian Cashman wasn’t born yesterday.

A Torrid Love Affair

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AP Images/Kathy Willens

Well, it’s done. The Yankees have signed Rafael Soriano for three years and $35 million dollars. Given that Cashman said he was not interested in giving up the first round pick, it came as a bit of a surprise. In retrospect, though, everyone should have expected this.

Two words: Scott Boras. Boras and the New York Yankees have a long history, tied together by big numbers made by superstar players. This isn’t the first time Boras (with some help from the Yankees ownership) has managed to wiggle his grubby little hands deep into pinstriped pockets. As a matter of fact, it’s happened over and over. It makes perfect sense that the team with enormous financial power spends a lot of time dealing with the agent known for record-breaking contracts. Two powerhouses with complementary results should go hand-in-hand, but most of the time, both sides can’t win in a negotiation.

Exhibit A: In 1998, Bernie Williams was coming off a .328/.408/.544 season where he banged 21 homers and 100 RBIs. The offseason started off pretty bleak, though: George Steinbrenner had made it quite clear that his highest offer for the beloved center fielder was five years and $60M and not a dime more. Boras insisted that he had seven- and eight-year offers from mystery teams. There were plenty of people who thought this was a load of bull, but Boras held his ground, so the Yankees eyed Albert Belle instead. But Boras fought. He brought up meetings with both the Diamondbacks and the much-hated Boston Red Sox, who had were rumored to offer our dear Bernie seven years and $90M. When Belle signed with the Orioles, Boras pounced, and before anyone knew it, Williams was a Yankee to the tune of seven years and $87.5M, way above what Steinbrenner originally wanted to pay. In the end, the contract was a pretty good one: Belle suffered hip issues that knocked him out of baseball just two years later, and Bernie hit .298/.386/.480 and signed on for one last year in 2006.

Exhibit B: Alex Rodriguez. People could write books about the Rodriguez-Boras relationship, to say the least. In another example of shrewd Boras negotiating, Alex Rodriguez snapped himself up a 10-year, $252M contract from the Rangers. The franchise seemed to have forgotten they actually had to have that money to pay it, and began searching for trade options. In 2003, there was an attempt to trade Rodriguez to the Red Sox, but the complicated negotiation would have involved losing $30M. Interestingly enough, the trade fell through not because of Boras (who was fine with Rodriguez losing the cash), but the MLBPA, who felt that losing guaranteed contract money set a bad precedent. As per usual though, Red Sox loss was Yankee gain, and the Yankees acquired Rodriguez in February of 2004. But where Boras really showed off his skills was when Rodriguez opted out of the remaining three years and $72M of his contract in 2007 in favor of renegotiation. This decision, as I’m sure you all remember, was leaked during the 2007 World Series and I bet the New York Post had some really, really good front covers discussing the matter in their, ah, unique way. To calm the storm of New York rage, Rodriguez tried to soothe things by contacting the Yankees office directly, at the advice of Warren Buffet. As Rodriguez attempted to repair his public image (never his strong front) Boras took advantage of the fluctuations of the Yankees front office to secure the absolutely insanely absurd 10 year/$275M contract Rodriguez plays under today. He had a bigger hand in the incentives: each time Rodriguez passes a person on the all-time home run list, it’s an additional $6M in his pocket. If Rodriguez becomes the all-time home run leader, his contract will exceed $300M, the first ever in professional sports. I’m sure I’m not the only one who grimaces and tries to ignore how much we’re paying A-Rod in favor of the numbers he puts up, but Boras will be Boras. Truly the best worst contract ever.

I’m glad to say that the story for Johnny Damon is much shorter and sweeter. It was December 2005 and the Boston Red Sox  refused to budge on their 3-year contract offer for their center fielder, the caveman-like Johnny Damon. Damon, who had already admitted that he doesn’t want to be a Yankee, was looking for more than three years, and the Sox would not negotiate down from Boras‘ five-year plan. Boras even tried to get in contact with the Sox’s owner, Larry Luchino, but to no avail, and soon enough, Damon was a Yankee to the tune of four years and $52M. He would go on to hit .285/.363/.458 in the pinstripes and looked significantly less like a yeti, both great things about his tenure in the Bronx. I’m pretty sure I’ll always remember his 2009 double steal against the Phillies. The story has a sad note for everyone who loved Damon as a Yankee, though, and for once Boras’ demand for cash came back to bite his client. Damon demanded no less than the $13M he was paid for any further deals, and the Yankees said no. When they refused to budge, Damon was forced to take a one year, $8M offer for the Tigers. He’s a free agent now, so we’ll have to see how that ends up.

The story continues. In 2008-09 offseason, the Yankees were coming off their first season without October baseball since the strike, and they were out for blood. What do you do when you’re the New York Yankees and you want to win? You use your biggest advantage: in a mindboggling display of financial might, the Yankees signed Mark Teixeira, CC Sabathia, and AJ Burnett. Teixeira, another Boras client, picked up the record for highest paid first baseman with an eight year, $180M contract of his own. While Teixeira’s 2009 numbers were strong (he lead the league in RBIs and home runs), his glacially slow start in 2010 contributed to a down season. Here’s hoping that he’ll be make himself close to worth the $22.5M he’ll be getting in 2011.

Soriano is only another chapter in the long story between Boras and the Yankees. “Like Williams and Rodriguez, he secured himself an exorbitant amount of money; his numbers from the previous year were stellar enough to pretend to justify both the years and the cost, at least for the Yankees. think it’s safe to say that Soriano and his three year, $35M contract won’t be the last time these two powerhouses meet. Andrew Brackman, for example, is a Boras client, and I’m interested to see how he develops as a pitcher and what Boras can do for him. While Boras clients almost never completely live up to their contracts, there is no doubt many of his clients have been incredibly important and still quite valuable to the current Yankees and those of the recent past. Let’s hope Soriano continues this trend.

The life and times of Scott Boras

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A year ago, Scott Boras and Alex Rodriguez suffered through a public and personal divorce. While A-Rod’s opt-out resulted in a $270-million, 10-year deal from the Yanks, his timing — in the middle of Game 4 of the World Series — earned him universal baseball scorn. With another top client jobless as Spring Training begins, Boras is again on the receiving end of some bad press.

According to a report in the Dominican-based Impacto Deportivo, Manny Ramirez may be on the verge of jettisoning Boras as his agent this week. The free agent could attempt to handle negotiations himself.

For Scott Boras, losing Manny Ramirez at this point in his career wouldn’t be the biggest loss to the agency business. After all, Mark Teixeira, also a Boras client, just landed himself a $180-million, eight-year deal. Boras will draw a far bigger commission from that one Teixeira deal than he will throughout the rest of Manny’s career.

But on the other hand, Boras seems to play a dangerous game with his clients. He tried to steal the spotlight for A-Rod in 2007, and he completely misread the Manny market this year. Teams seem to be getting wise to his dealings. It’s tough to convince a GM that some unknown team is also in on the GM’s top target when the GM is expecting Boras to drop that line.

So instead, Boras the agent tells his clients that he can get them a better deal. Turn down the two-year, $40-million option; turn down the two-year, $45-million offer; turn down the one-year, $25-million offer. Somewhere out there is a three-year offer, and somewhere out there are a bunch of fans who aren’t going to look too kindly on a player haggling over a few million dollars while the American economy hits a recession.

Manny will probably land with the Dodgers. Joe Torre is expecting him, and the team is holding open a locker for the slugger. But he looks bad, and Boras’ players are finally deciding that perhaps the bad press just isn’t worth it. As teams grow tougher, it will be interesting to see how Boras maintains his empire. He didn’t get to the top without smarts, and he’ll have to adapt. It’s all part of the game of the business of baseball.

Boras steals the show

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So Joe and were just sitting around here in the press room, surfin’ the net and the such, when Scott Boras walks by followed by an army of reporters. I’m not kidding, there were about 40 or 50 people following him. He marched to the front of the room, stepped up on the little camera stage and launched into an impromptu press conference. Out of nowhere the guy storms into the room and commands everyone attention; it was pretty impressive.

Here’s the notable stuff he said:

  • When asked about how many teams have expressed interest in Manny Ramirez, he estimated that “nine or ten teams can use a three-four bat,” which wasn’t the question.
  • Boras feels the Sabathia deal “creates a path” for the remaining pitchers on the market, specifically citing Derek Lowe. He said Lowe’s received a ton of interest, ditto Oliver Perez, the “26 yr old lefty who’s pitched in big games the last few years.”
  • When asked if Jacoby Ellsbury would be open a Pedroia-esque long-term deal, Scott didn’t answer the question, instead noting that if it gets to that point his job “will be easier because it’s mid-January.”
  • He called the market for Felipe Lopez very good, noting that teams recognized his versatility, “his ability to start at second or play the outfield.” Lopez has played 17 games in the outfield in his eight year career.
  • Joe Crede’s recovery from his back injury is going well, he’s going to start “skills drills” in January. Boras also called Crede an All-Star 3B, which made me laugh until I released that he was selected as a reserve this year. The guy hit .252-.323-.463 in the first half; how much do you think Boras paid Tito to take him?
  • When asked if anyone other than the Sox have made an offer to Varitek, he went off into a ramble about how he wouldn’t get into the number of teams that have inquired.
  • He believes Eric Gagne will get a closer’s job somewhere. Good luck with that.

Mark Teixeira was the hot topic, so he gets his own little section:

  • He mentioned that he has received several concrete offers for Tex’s services and is currently in the counteroffer phase. It was the exact same question that he had ducked about Manny.
  • When asked if the Nats losing 102 games would turn Tex off from signing with them, he specifically mentioned Pudge signing the Tigers the year after they lost 116 games as an example of players doing it before. He also noted that it would be nice to play for a team with the first overall pick in the draft, but he didn’t mention Steven Strasburg (his client).
  • Boras doesn’t expect the Sabathia contract to eliminate the Yanks from the running for Tex, indicating that the Yanks have historically shown the desire to improve the team by any means necessary.
  • He mentioned all of Tex’s skills (hits for high avg, gets on base, hits for power, Gold Glove defense) and noting that the only comparable player on the market next year was Matt Holliday, and that Prince Fielder won’t hit free agency until after 2011. He’s already laying the groundwork for the future.

Someone also asked Boras if there was any conflict of interest since he was representing so many high profile players. He said no of course, and mentioned that he has a 15 person staff here. It was pretty cool, you can tell he loved the attention.