The Pittsburgh Pirates released this statement today regarding their contract with 1st round draft pick Pedro Alvarez.
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.
Boras’ assertion is that since the Pirates and Alvarez agreed to their deal after the midnight deadline, the contract is not valid. This could also have repercussions for another Boras client who agreed to an after midnight deal, Eric Hosmer with the Kansas City Royals.
Once again, Boras attempts to exploit every possible loophole in the draft process. Proving yet again that MLB needs to do something to fix their broken system.
Ronny | 27-Aug-08 at 2:33 pm | Permalink
Hold up, does this mean our second pick now drops to 12 overall?
Andrew S. | 27-Aug-08 at 2:35 pm | Permalink
If somehow Boras and Alvarez can escape this (and find some loohope) then our 2nd pick goes to #11. Pittsburgh would get pick #3 as compensation.
Andrew S. | 27-Aug-08 at 2:36 pm | Permalink
loohope = loophole*
Brian Oliver | 27-Aug-08 at 2:38 pm | Permalink
I am not sure about that. Baseball America went back and forth about that this past off-season. I’ve seen reports where the situation plays out like Andrew suggests. However, I have also seen reports that the pick is after the ninth pick in the draft as opposed to the #9 pick in the draft, meaning the pick will remain 10th overall.
Ronny | 27-Aug-08 at 2:39 pm | Permalink
If the same thing happens to Eric Hosmer our pick will drop to 12. Nice going Boras, mess it up for everybody.
Berndaddy | 27-Aug-08 at 2:39 pm | Permalink
Agents suck!! Brian’s right we need a new system for the draft. I doubt we’d see that by next years, though.
Does this mean of we want Strasburg we’re paying $8-$12 million??? Wow, for an untested player…Wow…
Brian Oliver | 27-Aug-08 at 3:02 pm | Permalink
Just got confirmation from Jim Callis over at Baseball America during his weekly chat. The Nationals pick is tied to the regularly slated #9 pick not 9th overall. If the contracts of Alvarez & Hosmer are invalidated and they end up not signing, the Crow compensation would be the 12th overall selection in the 2009 draft.
1 Washington (2009 #1)
2 Seattle (2009 #2)
3 Pittsburgh (Alvarez compensation)
4 San Diego (2009 #3)
5 Kansas City (Hosmer compensation)
6 Kansas City (2009 #4)
7 Pittsburgh (2009 #5)
8 San Francisco (2009 #6)
9 Cincinnati (2009 #7)
10 Atlanta (2009 #8)
11 Oakland (2009 #9)
12 Washington (Crow compensation)
All of this is way too early to get too agitated over.
Positively Half St | 27-Aug-08 at 3:04 pm | Permalink
Seriously too early for agitation. I need to continue being agitated that we did not sign Crow!
John | 27-Aug-08 at 3:09 pm | Permalink
Actually, I’ll take the number 12 overall if it means Alvarez and Hosmer are in the 2009 draft. They’ll either be there at 12 or push down other players. IMO, both will likely go very early again.
John | 27-Aug-08 at 3:17 pm | Permalink
I can’t see this working for Boras. They had a verbal agreement and I assume had to make a request for MLB to get an extension on the deadline in the first place. It appears that all three sides agreed to the contract and the time it was agreed upon. I don’t see where Boras has any legal footing.
Brian Oliver | 27-Aug-08 at 3:22 pm | Permalink
John - I believe Boras is basing his argument on the point that Alvarez’ agreement was not legitimate because there was not an approved extension from MLB. If MLB, the Pirates & Boras did not agree on the extension, the contract signing did take place after the midnight deadline.
That being said, I doubt anything comes of this … aside from reinforcing how the draft process needs to be scuttled and rebuilt from the ground up to prevent this type of thing.
First order of business, the midnight deadline cannot be extended EVER.
Andrew S. | 27-Aug-08 at 3:26 pm | Permalink
John, not sure Hosmer would be in the 09 draft. That is a really trick situation. Alvarez would have to take the Indy Ball route ’til 09 but Hosmer…has a commitment to ASU yet an agent spoke on his behalf and classes have all ready started on campus. Maybe he could go to a Juco. Not sure, but it isn’t a given that he would be available next year.
Dick | 27-Aug-08 at 3:27 pm | Permalink
Wow, can you imagine the angst in Natsland if Crow had done this? It was bad enough that he didn’t sign. A draft with Strasburg, Alvarez, Hosmer and Crow back in it should ensure something good is around when we make our two picks.
If Hosmer is unsigned, that puts him in some limbo regarding college. I assume he goes to community college or something. I wonder if he is okay walking away from $6 million.
It seems to me that midnight on August 15 was some time ago so Boras just made Hosmer and Alvarez join Crow, right?
John | 27-Aug-08 at 3:32 pm | Permalink
Andrew S. My impression is he doesn’t want to go to school. Daniel Webb is a pitcher that had a commitment to Kentucky and turned it down to go to a Juco, so it can be done. I don’t think it will happen though.
Brian: If MLB said it was done in a timely fashion as the statement says, that counts as them approving in my opinion. I agree that nothing will come of it.
I also agree that the draft process is bad, but I believe that can’t be changed until there’s a new CBA, right?
John | 27-Aug-08 at 3:36 pm | Permalink
Dick: I don’t think so. Apparently, all Boras wants is an extra 200K so Alvarez’s bonus will match Posey’s as the highest in the draft.
I think he’s hoping the Pirates will cave since it’s a relatively low difference. If I’m the Pirates I call his bluff and see if he really wants to lose two top clients as I believe both Hosmer and Alvarez would fire him if they lose their contracts.
Brian Oliver | 27-Aug-08 at 3:43 pm | Permalink
John - Correct. It cannot be renegotiated until the next CBA which runs through 2011.
Boras is always going to test every loophole he possibly can. He was the guy behind the 1996 draft move that made John Patterson, Bobby Seay, Travis Lee & Matt White all free agents. Teams had until 15 days after the draft to tender selected players a contract. The Expos (Patterson), White Sox (Seay), Twins (Lee), and Giants (White) did not do that and MLB was forced to make them free agents.
John | 27-Aug-08 at 3:48 pm | Permalink
Ok. Now I read on BA that Boras once claimed A-Rod’s contract that Seattle presented had different terms than the one agreed to and tried to use that as a reason to re-negotiate. I wonder if he’s doing that here.
If he can prove that the terms on the paper don’t match what Alvarez agreed to, he may have something. That would also prevent MLB from throwing Hosmer at him. That’s a much smarter strategy.
I wonder what proof he has, if any that the terms are different.
Andrew S. | 27-Aug-08 at 3:52 pm | Permalink
Boras is good at his job so he must see something we aren’t.
Pedant | 27-Aug-08 at 3:56 pm | Permalink
It cannot be renegotiated until the next CBA which runs through 2011.
There is no reason why MLB and the MLBPA can’t reopen the issue prior to 2011. They’ve amended the drug testing provisions about a thousand times mid-CBA the past few years. But there’s no indication the parties would want to.
Andrew F | 27-Aug-08 at 4:50 pm | Permalink
Yeah, signing Strasburg next year will be a piece of cake.
Pilchard | 27-Aug-08 at 4:57 pm | Permalink
Yes, MLB and the PA can renegotiate now, but the PA has no incentive to do so. They had a huge reason to renegotiate the drug testing issue because the PA leadership was getting hammered by Congress and the court of public opinion for their opposition to enhanced drug testing. Also, the majority of the players supported changes in the drug testing system. None of those factors are at play here.
The fact is that agents (Boras, the Hendricks brothers) do not want a slotting system because it would render agents superflous for the MLB draft. Now that the NBA has a slotting system and max contracts, some NBA players don’t even need agents. Agents have a very powerful voice in the MLBPA and I don’t see them conceding this issue without something huge in return (e.g., requiring teams like the Marlins to have a minimum payroll). Regardless of what the MLBPA looks for in return, I don’t see anyway that the MLBPA will voluntarily agree to negotiate this issue prior to 2011.
Rocket Surgeon | 27-Aug-08 at 5:05 pm | Permalink
John- Minor point of clarification- Daniel Webb committed to KY but didn’t qualify academically, so went to a OWC JUCO.
Cole | 27-Aug-08 at 5:16 pm | Permalink
Hosmer supposedly is already playing for pay in the Royals’ system. That should rule out playing any kind of college ball.
estuartj | 27-Aug-08 at 5:38 pm | Permalink
Eric Hosmer has played two games for the Idaho Falls Chukars in the Rookie Pioneer League.
Pilchard | 27-Aug-08 at 5:40 pm | Permalink
^^^ True. Hosmer has played 2 games for Idaho Falls in the Pioneer League — the Royals entry. Would be bizarre if he was pulled for the Royals at this point.
Ronny | 27-Aug-08 at 6:43 pm | Permalink
Brian is on the Nats pre-game show right now.
Andrew | 27-Aug-08 at 6:51 pm | Permalink
My guess is that if Hosmer is pulled, he would have decent legal grounds to keep his bonus. He’s not a member of the union, nor is he subject to the collective bargaining agreement; he had a contract with the employer- if the employer backs out it would be interesting to see how it would play out.
Ronny | 27-Aug-08 at 6:56 pm | Permalink
Good job of dropping some knowledge on the show Brian.
RD | 28-Aug-08 at 12:38 am | Permalink
Legal grounds won’t mean a thing to the NCAA.
They did not allow Mike Williams to return to USC a few years ago, even after the rule was switched to allow sophomores to declare. He declared, the rule was overturned, but Williams was not allowed to come back to school. He had to sit out the season then be drafted again.
The NCAA doesn’t make the logical move, so there’s no way Hosmer would be allowed to go to ASU. I don’t know how that would effect JuCo status though.
I imagine he’d just go the independent route, if he was going to go to JuCo. Might as well make some money if you’re sole intent is to be redrafted again next year.
expo_ram | 28-Aug-08 at 11:37 am | Permalink
I agree with those saying that if MLB says the contracts were in by midnight, the arbitrator will rule in their favor and the contracts stand. Now, Hosmer is signed (literally), so he would continue on. Alvarez never actually signed, so I have a feeling he goes back in the draft next year…
Here’s a good question - if MLB let Boras and the Bucs re-open negotiations, you think Jimbo will be on the phone to MLB asking for a 2nd shot on Crow? After all, we were supposedly honest in ceasing negotiations at midnight…
BIM | 28-Aug-08 at 7:19 pm | Permalink
In response to a comment by Pilchard: I, for one wouldn’t mind seeing a minimum salary requirement - It might drive the “carpet-baggers” like Loria out of the game.
BIM | 28-Aug-08 at 7:28 pm | Permalink
To Andrew: Did Hosmer sign a Major-league or minor-league contract with K.C.? If he signed a MLB contract, I think he is automatically a member of the MLBPA & subject to their rules. If the agreed-upon contract for Hosmer was recieved at MLB-HQ after the Alvarez contract, that will only hurt Boras’ claim against PIT. Even though I personally think Boras is a snake-oil salesman, I can’t believe he’d do something that could void one of his clients’ contracts in favour of another.
Brian Oliver | 28-Aug-08 at 7:30 pm | Permalink
Hosmer signed a minor league deal with Royals
BIM | 28-Aug-08 at 7:35 pm | Permalink
To expo_ran: I can’t logically (or ethically) see that the arbitrator would allow negotations to be re-opened. If the contract wasn’t signed, Alvarez goes back into the pool (like Crow), and can’t sign with a Major-League club until after next years’ draft.