The agency Proformance Baseball is attempting to change baseball’s agency commission model by charging their clients significantly less than the industry standard, Darren Heitner of Forbes.com writes. Usually, agency commissions cost 4-5% of the salaries of players with negotiated contracts worth more than the MLB minimum, but Proformance now says that it will take just 1.5%.
“We saw a fiercely competitive landscape where everybody looked the same,” says Proformance co-founder Jeff Beck. “The agents basically offer the same services, pretty much the same fee structure whether it is 4% or 5%, and I could literally hear the sound in my ear from a meeting a couple of years ago where a guy was saying, ‘You guys are all really the same.’”
Proformance’s services will be different from the typical agency’s, Beck says. Proformance will see its clients less frequently than a typical agent might, and instead will focus fairly straightforwardly on negotiating deals. There will be little “hand-holding,” as Beck puts it, and Proformance will turn its attention away from minor league players. Such a limited approach might serve a non-superstar veteran who earns a reasonable salary, Heitner notes. “We are taking the album and saying you can buy your two favorite tracks like iTunes,” Beck says.