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Drama Over Pedro Alvarez Contract

4:51pm: Jim Callis' analysis is a must-read at Baseball America.  There is a legitimate chance Alvarez is treated as if he didn't sign, and will become eligible for the '09 draft.

2:08pm: Jonathan Mayo, Jenifer Langosch, and Kevin Goldstein dig up more details.  Turns out Hosmer turned down $5.5MM prior to the deadline, but agreed to $6MM during an MLB-approved extension.  The Nats may have had an extension for Aaron Crow as well.

THURSDAY, 8:19am: MLB and the Pirates say the grievance is without merit, while Boras says the Bucs violated MLB's rules and need to "come clean."  Dejan Kovacevic says the sides have not yet discussed the idea of more money, dismissing the idea that Boras demanded another $200K.  An arbitrator will make a binding decision on this case on September 10th.  Most believe Alvarez will remain a Pirate with a $6MM bonus.

By the way, Royals GM Dayton Moore is not concerned about Hosmer's contract.

WEDNESDAY, 5:07pm: MLB.com's Jonathan Mayo has been digging all day on this topic.  Many questions remain, but it's a good read.

2:27pm: Baseball America's Jim Callis offered thoughts on the situation in a chat today.  He heard Hosmer was granted an extension by MLB, and signed a bit after the deadline.  Alvarez may have been granted one as well.  Alvarez apparently took control of the negotiations toward the end, which may be the cause for Boras' complaint.  A similar situation happened in '93 with A-Rod, and the grievance didn't go anywhere.

Also, it should be noted that the Players Association filed the grievance, not Scott Boras.

2:07pm: MLB.com's Jenifer Langosch talked to a source who said Boras wants another $200K, so that Alvarez's bonus matches Buster Posey's.

12:57pm: Turns out Pedro Alvarez has not reported to the Pirates yet for a reason - the Players Association filed a grievance on his behalf today.  They're saying Alvarez verbally agreed to his $6MM bonus after the midnight deadline on August 15th.  Scott Boras informed the Pirates that Alvarez will not sign the contract unless it is renegotiated at a higher number.  Royals top pick Eric Hosmer may also become tangled up in this mess, since his contract was submitted after Alvarez.

The Pirates issued a statement, showing their displeasure with Boras' tactics but expressing confidence the grievance will be dropped.  The team also indicates disappointment with Alvarez himself, as he ultimately approved this grievance.  In a way, it seems like Boras is taking a stand in general against the idea of the midnight deadline.


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Boras is just trying to squeeze out some extra cash over a claim that is not valid. If his claim goes through then he will lose Alvarez and Hosmer their signing bonuses. I don't see Huntington dishing out another 2 million that Boras probably is asking for.

Boras is a c*nt

Sorry for the language

Oh. My. God. Boras sucks. Is there a way that MLB can ban this guy, he makes trouble every year. Sooner than later, players are going to not use him because teams are skipping Boras clients at the draft.

Full press release here. Absolutely beautiful work by the Pirates front office and PR staff.

"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 Major League Rules provide that a player who refuses to sign a Uniform Player Contract to which he has agreed and report to the signing Club shall, upon a report of the signing Club, be placed on the Restricted List until he signs a contract reflecting the terms to which he has agreed. Such a player may not sign a contract with or play for any other Club. While demanding that we renegotiate his contract and pay Pedro more than the $6 million signing bonus to which Pedro agreed, Mr. Boras has contended that the contract we reached with Pedro was consummated after the Aug. 15 deadline. This claim was not raised on the evening of the 15th when we informed Mr. Boras that Major League Baseball had confirmed that the contract was submitted in a timely fashion. Mr. Boras asserted this claim several days later, after all of the draft signings had become publicized.

"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.

"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."

You know I don't even feel bad for Alvarez he basicly brought this on himself by not telling Boras to shut up and just reporting. This makes me wonder if Alvarez is hiding an injury or something like that. If he has an injury sice he signed a minor league deal the Pirates can nullify it if their doctors say he isn't ok.

I do feel bad for Hosmer because if they do nullify Alvarez's contract his gets nixed too.

I don't think Hosmer's deal would get nixed without a formal claim being made.

Gimme Some Tabata.

Two points

1. It says right there in the release that Alvarez displayed fortitude when he agreed to the contract. Obviously Boras was too busy being an ass.

2. The pirates cannot void his contract now because of injury. What kind of terrible organization would not require an extensive physical before agreeing to a contract?

"I don't think Hosmer's deal would get nixed without a formal claim being made."

It would almost have to be. If the only reason Alvarez's contract is nixed is due to timeliness and hosmer's was submitted after, wouldn't MLB have to act?

Meoveryouok, I'm not saying that a determination by someone (arbitrator?) that Alvarez's contract isn't valid wouldn't set a precedent and give Hosmer a chance to make the same claim. However, if neither Hosmer or the Royals are complaining about it, I don't think MLB would be required to take any steps.

My guess is that Boras feels the Scott Boras Corporation brand has been damaged by Alvarez getting less than Posey. What Alvarez is doing helping out the SBC brand eludes me, however: this action damages the Alvarez brand, without any compensation flowing from SBC.

For the rules geeks and lawyer manques here: should MLB affirm the signing but SBC/Alvarez play hardball and refuse to report, do the Pirates get pick #1A next year, but nevertheless retain the rights to Alvarez based on this contract more-or-less in perpetuity?

That would be a pretty neat trick.

I think if Boras pulls this off you'll see the Pirates inquire on Hosmer; hell maybe Hosmer sees an opportunity for more money, not that I think he's the dirtbag Boras is paid to be.

Point is, if Boras screws the Pirates over, the Pirates could easily look to screw Boras over by bringing up the Hosmer contract. It has to look bad for an agent if another team is capable of nixing a deal you got for a client.

Maybe the Nationals can have Alvarez and the Pirates can have Crow and call it good. That'd be fine with me. Too much drama this draft.

It cannot end well for Boras. The contract has been agreed to and if MLB affirms it was in a timely fashion, Alvarez/Boras only option is to sit out.

Sitting out because you're not happy with a contract you signed 2 weeks ago?

That is just sh!tty.

PNChopeful, actually according to the following article, Boras is holding out for only 200k, not 2M. The point being he wants the Pirates to match the Giants offer to Posey:
http://mlb.mlb.com/news/article.jsp?ymd=20080827&content_id=3375888&vkey=news_pit&fext=.jsp&c_id=pit

But really, this is absolutely pathetic by both Boras AND Alvarez. If there was any validity to the "Alvarez agreed after the deadline" claim then either another team would have complained by now or Boras simply gave approval without consulting Alvarez.

If I'm the Pirates, I hold out, if he's not in uniform by spring, make sure he stays a restricted player permanently. He agreed to a contract, he should play. Really, to make such a huge fuss over 200k, basically bragging rights over the top paid amateur player, needs to be met with force.

Meoveryouok says "2. The pirates cannot void his contract now because of injury. What kind of terrible organization would not require an extensive physical before agreeing to a contract?"

You are wrong. Alvarez verbally agreed to a minor league contract. A minor league contract is subject to a physical, even after the contract is signed. A major league contract can not be rescinded because of an injury, so a team really needs a physical before signing a draftee to a major league contract.

mrbig, do you have documentation on that? I haven't heard that before.

There's a reason Boras has a reputation as a d@#chebag. It's well-earned. I hate A-Rod, but big ups to him for leaving Borass out of the negotiations. He's part of what's wrong w/ baseball. MLBPA has too much power.

If he signed the contract he would rot before I'd give him a cent more.

ML baseball needs to just put down a hard line if you are drafted this is what you get, no more no less.

You want more money then work your tail off in the minors and get to the majors.

Any player that doesn't sign or worse tries to pull this crap I hope has their career go down the Matt Harrington path.

Unless I'm misunderstanding something, since he is on the restricted list, he:

A) doesn't get paid
B) cannot sign with any other team, ever

So in effect, he can never be paid to play (Major or Minor league) baseball.

If I'm the Pirates I just let him rot.

Honestly, I understand Alvarez is a great prospect, but after all this, with the late signing and holdout and such, do you really want someone like that on your team? Compare to Tim Beckham, who signed right away because he actually wanted to play. Is the desire for Alvarez there? Doesn't seem like it!!!

Boras = Jack Off nough said!

A hard slotting system would only work if they restructure the way service time is calculated. The draft is a player's last chance to negotiation a contract on an level playing field for up to 10 years.

"An level"? Oh, me.

I believe I read it at Dejan Kovacevic's blog leading up to the signing deadline (http://community.post-gazette.com/blogs/pbc/). I'm also pretty sure I read it in a few other places (maybe BA?).

To clarify my understanding: Major league contracts are guaranteed once signed, so any physical would have to be completed before the contract signing. Otherwise the team takes a huge risk. Minor league contracts are not guaranteed when signed, but can be made subject to a physical. I could be wrong, but I definitely read that in a few places.

Personally this has to be one of my favorite quotes ever from a team issued statement: "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."

Makes me want to be a Pirates fan.

Boras does the best he can for clients. He is hired to make them extra $ any way he can. These players know what they are getting when they hire him as their agent so why do we always act surprised when things like this happen?

All of Boras' clients should be on the same team, based in the Caymans where they do their banking. They should only play home games, because they don't like to travel. And if they ever run short on pitchers in extra innings, they have the option of calling the game a tie and just going home.

Pedro Alvarez, welcome to Club Schmucks.

Can't MLB ban Boras the way that they ban illegal substances? The guy is worse for baseball than steroids.

He's doing the best he can....right...but does he have to acy like a total douchebag when he does it? What ever happened to honoring a contract when you agree to it? I hope the Pirates don't budge an inch and consign him to non-playing hell if he continues to press this. I'm not sure I even want Pedro on the Pirates anymore and I hope they sue the bejeezus out of Boras. What an idiot!

"You are wrong. Alvarez verbally agreed to a minor league contract. A minor league contract is subject to a physical, even after the contract is signed. A major league contract can not be rescinded because of an injury, so a team really needs a physical before signing a draftee to a major league contract."

You are telling me that as long as a player is signed to a minor league contract, the team can void said contract, at any time, due to injury?

You would think a physical would be standard operating procedure before signing any contract.

By the way, Alvarez did not simply verbally agree to anything. He signed his contract, it cannot be voided without some kind of compensation.

Anybody who whines and complains about Scott Boras, is a cliched douchebag.

yeah, and Boras is certified as an agent by the Players Association, They filed the grievance on Boras's behalf, so let's be realistic.

Meoveryouok: Alvarez hasn't signed...that's the issue. The first part of ESPN's article says

"No. 2 draft pick Pedro Alvarez refused to sign his contract with the Pittsburgh Pirates, and the players' association filed a grievance Wednesday..."

I'm not sure any of this has to do with an injury because one way or another it would come out. That being said, I also recall that if a player is signed to a minor-league deal it could be contingent on a physical. That doesn't mean it can be voided at any time due to an injury just something that's found in the initial physical. And they probably don't void it as much as they just adjust the money around.

All that aside, if the claim is that the contract was agreed to after the DEADLINE then how are they still claiming to want to renegotiate for the extra $200K? On one hand you're claiming you agreed after the deadline, but on the other you want more money on a deal that shouldn't be valid? What happens if the Pirates say "What the heck, here $200,001. Now go play." And then whoever is in charge says "Wait, that wasn't agreed upon before the deadline. Go independent or re-enter next year Mr. Harrington...er, oops, Alvarez."

The Nats are happy, because they no longer look like the biggest idiots from this year's draft.

Me, I'm just tickled that I called the situation. It's all about protecting the Scott Boras Corporation brand. SBC was probably out before the draft pre-selling its services to amateurs by telling them all to watch the SBC get Alvarez the highest bonus in the draft.

"The Nats are happy, because they no longer look like the biggest idiots from this year's draft."

You still don't have Crow. The Pirates are in a dispute over a player they have already given money to. You're still the biggest idiots.

Unless I'm misunderstanding something, since he is on the restricted list, he:

A) doesn't get paid
B) cannot sign with any other team, ever

So in effect, he can never be paid to play (Major or Minor league) baseball.

If I'm the Pirates I just let him rot.

==============================

Yeah, because we all know the MLBPA wouldn't do anything about that.......

"There's a reason Boras has a reputation as a d@#chebag. It's well-earned. I hate A-Rod, but big ups to him for leaving Borass out of the negotiations. He's part of what's wrong w/ baseball. MLBPA has too much power."

This move was all about the money from the start. The only reason that A-Rod fired Boras is because the Yankees wouldn't negotiate with him if Boras was involved. A-Rod doesn't love New York it's were he can make the most money. It was never about the I love New York factor.

A-Rod fired Boras? Pretty sure he was just excluded for contract negotiations. Boras got his cut.

The whole A-Rod negotiation process was about both sides saving face. Boras was made out to be the bad guy. He doesn't care as long as he is paid.

"A-Rod fired Boras? Pretty sure he was just excluded for contract negotiations. Boras got his cut."

He didn't even exclude him completely, A-rod just did the calls/face to face stuff to play nice. The man still got paid.

To the guy that said "I'm sure the Players Assoc would allow that" re: letting Alvarez rot on the restricted list - Minor league players that are not on the 40 man roster are not/can not be represented by the MLBPA ... so there really is nothing they could do about it.

I've already taken Pedro Alvarez out of consideration as a Pirates fan ... this kid is a fool for allowing Boras to go through with this charade.

This is the type of thing that could really backfire on Boras.

If the Buc's win Boras is forced to either wait-it-out, which I'm sure Alvarez will be against, or lose face and give in.

Either way it's just one more club, and maybe others, that shy away from dealing with Boras in the future.

Although it is collusion for all clubs to black-ball a player, I don't think the same rule applies to an agent.

nyyfan
a hooker is obligated to make as much money for her pimp when she can.
an addict will do whatever they can to make enough omney to pay their dealer
so i agree: why would we be surprised at an agent's behaviour?

can Hosmer's deal get nixed?he actually signed whereas Alvarez has not.

I don't think he can actually challenge a deal he signed.

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