Boras company tied to lending money to prospects

[southsider2k5]

http://sports.yahoo.com/mlb/news?slug=ap-boras-loans

 

NEW YORK (AP)—Baseball agent Scott Boras’ company supplied tens of thousands of dollars in loans and payments to the families of needy prospects in the Dominican Republic, The New York Times reported Tuesday.

 

The report cited people with ties to Boras. The Times said the loans and payments raise questions about whether his company broke Major League Baseball Players Association rules governing the conduct of agents.

 

 

Agent Scott Boras says his company has "aided" prospects and their families.

 

(Greg Fiume/Getty Images)

Boras is perhaps baseball’s most powerful agent. The Times said that in a statement he declined to say whether any loans were made, but he acknowledged his company had “aided” players and families in the past.

 

Boras said such assistance has always been “consistent with” players’ union rules, which are in place to prevent prospects from becoming financially obligated to agents, The Times said.

 

According to union regulations, loans of more than $500 per year made by agents to players and their families are forbidden unless the reason for the loan is revealed to the union, The Times said.

 

A spokesman for the players’ association declined to comment about whether the loans made by Boras’ company had been disclosed to the union, The Times said.

 

“This is a serious issue that raises concerns about the business practices of agents who have played a prominent role in the game,” a spokesman for Major League Baseball said in a written statement to The Times.

 

Domingo Ramos, a former big league player who works for Boras’ company, told The Times that the company typically represented a few top Dominican prospects each year and made loans to a majority of them. The money was usually used for food, housing and other needs, he said.

 

“Sometimes we get it back, sometimes we don’t,” Ramos told The Times. “Sometimes, it’s tough to get it back. It’s as simple as that.”

 

The Times said Boras’ company loaned teenage client Edward Salcedo and his family about $70,000 from 2007-09, according to the shortstop’s brother, Thommy, and Martiris Hanley, a former Boras employee. They said the money was to be repaid out of Salcedo’s future earnings.

 

Salcedo, however, hired a new Dominican trainer in 2009 and landed a $1.6 million contract with the Atlanta Braves last February, The Times reported. One of Boras’ employees called the family days later and demanded immediate repayment of the loan, Thommy Salcedo told the newspaper.

 

“We thought that if we went with another agent, Boras was going to put more pressure on us for this money, and my mother had so much debt that she couldn’t pay it,” Thommy Salcedo said.

 

He told The Times that his brother returned to Boras.

 

Edward Salcedo, 19, batted .197 with two homers and 16 RBIs in 54 games at Class-A Rome this year. He said he was still represented by Boras and had not repaid the money, The Times reported.

 

“We’ll get it back,” Ramos told The Times.

[Texsox]

Sending money to the poor in disadvantaged countries = good.

Boras sending money to the poor in a disadvantaged country and hoping for some back = evil.

 

I'm feeling bad for expecting my Kiva.com loans to be repaid.

[Balta1701]

Sending money to the poor in disadvantaged countries = good.

Boras sending money to the poor in a disadvantaged country and hoping for some back = evil.

 

I'm feeling bad for expecting my Kiva.com loans to be repaid.

WTF?

[Texsox]

WTF?

 

So Boras spreads a few dollars of his millions around South America. He gets some back, some he loses. Yeah, he's gambling that some of these kids will bring in future commissions. And since it is Bora$, it must be evil. But I honestly can't get worked up over it at all. In fact, pump a bunch more money into that economy. Why not build a league and pay these kids a little salary.

[southsider2k5]

So Boras spreads a few dollars of his millions around South America. He gets some back, some he loses. Yeah, he's gambling that some of these kids will bring in future commissions. And since it is Bora$, it must be evil. But I honestly can't get worked up over it at all. In fact, pump a bunch more money into that economy. Why not build a league and pay these kids a little salary.

 

Great, except it is illegal the way he is doing it.

[Texsox]

Great, except it is illegal the way he is doing it.

 

I guess I missed the part about it being illegal. Which country's laws is he breaking?

[Quin]

And that kids, is how Scott Boras was banned from being an MLB Agent.

 

/hope

[ScottyDo]

I don't think it's hard to see how having poor prospects and their families owe Scott Boras money is a bad thing. You clearly can't assume Boras is above exploitation.

 

Also, kiva.com is amazing. Microlending FTW. Completely different, though.

[Texsox]

I think we can also see where loaning people money who can't get a loan through regular channels may be a good thing. The only difference here is the expectation of getting paid back. Waitm that's something people usually expect when they loan someone money. The expectation is Boras will be the kid's agent. If the kid never signs a pro contract, he probably would never have the resources to pay him back. So the kid happens to owe one of the biggest sports agents money. I wonder how hard that agent will work for his client? Are we worried that Boras has a conflict of interest?

[lostfan]

Yes Tex, it's a pretty blatant conflict of interest

[Texsox]

Yes Tex, it's a pretty blatant conflict of interest

 

 

Yeah, Boras has to make certain his client gets a contract, what a terrible conflict for an agent to have. What if staying in the DR and working at a hotel would be better for the kid than coming to America and playing minor league ball. The kid has to work hard to be major league ready, what a terrible conflict of interest to have. Maybe it is in the kid's best interest to just get a regular job instead of signing a minor league contract.

 

Those poor kids and their families getting money upfront from an agent. Agents should wait until they are getting paid to pay any attention to these kids. Damn agent making an investment in some kid at an early age. Terrible, just terrible. f*** these kids until they can afford an agent. Then have the agents swoop in to collect. That's the American way!

[southsider2k5]

Yeah, Boras has to make certain his client gets a contract, what a terrible conflict for an agent to have. What if staying in the DR and working at a hotel would be better for the kid than coming to America and playing minor league ball. The kid has to work hard to be major league ready, what a terrible conflict of interest to have. Maybe it is in the kid's best interest to just get a regular job instead of signing a minor league contract.

 

Those poor kids and their families getting money upfront from an agent. Agents should wait until they are getting paid to pay any attention to these kids. Damn agent making an investment in some kid at an early age. Terrible, just terrible. f*** these kids until they can afford an agent. Then have the agents swoop in to collect. That's the American way!

 

Yeah, um, I don't think you read the whole article about how exactly this was happening, because it was closer to extortion than getting families money.

 

Salcedo, however, hired a new Dominican trainer in 2009 and landed a $1.6 million contract with the Atlanta Braves last February, The Times reported. One of Boras’ employees called the family days later and demanded immediate repayment of the loan, Thommy Salcedo told the newspaper.

 

“We thought that if we went with another agent, Boras was going to put more pressure on us for this money, and my mother had so much debt that she couldn’t pay it,” Thommy Salcedo said.

[Milkman delivers]

I'm not as angry about this as Tex seems to be, but I really don't see a big problem with this. It might have its disadvantages, but I'm thinking overall that it is probably a good thing for the players.

 

In regards to that specific story about Salcedo, it says he was tendered a $1.6 million contract. If you owe somebody money and you come into $1.6 million, people are going to come back expecting to be repaid and Salcedo would be a huge jagoff to not honor his debt.

 

I doubt Boras is hounding the guy who borrowed $5,000 and never received a contract from anyone.

[ScottyDo]

I'm not as angry about this as Tex seems to be, but I really don't see a big problem with this. It might have its disadvantages, but I'm thinking overall that it is probably a good thing for the players.

 

In regards to that specific story about Salcedo, it says he was tendered a $1.6 million contract. If you owe somebody money and you come into $1.6 million, people are going to come back expecting to be repaid and Salcedo would be a huge jagoff to not honor his debt.

 

I doubt Boras is hounding the guy who borrowed $5,000 and never received a contract from anyone.

Signing a $1.6M contract does not necessarily mean you have $1.6M in the bank a few days later. I think it's pretty clear that Boras is exercising leverage in an unfair and unregulated fashion. It's bad news.

[Texsox]

I'm not as angry about this as Tex seems to be, but I really don't see a big problem with this. It might have its disadvantages, but I'm thinking overall that it is probably a good thing for the players.

 

In regards to that specific story about Salcedo, it says he was tendered a $1.6 million contract. If you owe somebody money and you come into $1.6 million, people are going to come back expecting to be repaid and Salcedo would be a huge jagoff to not honor his debt.

 

I doubt Boras is hounding the guy who borrowed $5,000 and never received a contract from anyone.

 

I'm not angry at all. IO don't have a problem at all with what he's doing. The palyer's union allows loans up to $500. So the issue becomes why they allow $500 but not $5,000 or $50,000. Boras, instead of waiting until the guys are signing ready, then swooping in to grab a paycheck, is putting some cash up front with these guys. And yes, he expects to be their agent when they sign a deal. And yes, he expect to be repaid. I agree, I doubt he's chasing down guys for $5,000 who never sign. That's the cost of doing business.

[StrangeSox]

The problem comes from taking advantage of people by flashing money in their face and then getting them hooked into your services long term.

[Texsox]

The problem comes from taking advantage of people by flashing money in their face and then getting them hooked into your services long term.

 

And what does an agent do later? Promise big bucks and hook them into your service long term.

[Paint it Black]

Signing a $1.6M contract does not necessarily mean you have $1.6M in the bank a few days later. I think it's pretty clear that Boras is exercising leverage in an unfair and unregulated fashion. It's bad news.

 

You don't want to know what actually happens in some of the Dominican camps if you are that offended at what Boras did. In fact, this isn't really a story at all. Boras loaned Salcedo $70,000, and then the kid ended up getting a $1.6 million signing bonus from the Braves. Agents do things like what Boras did all the time. They just have to file such items with the Union. Boras did so.

[Paint it Black]

The problem comes from taking advantage of people by flashing money in their face and then getting them hooked into your services long term.

 

As opposed to teams taking advantage of a foreign players ignorance to United States laws on contracts? And was does "hooked into your services" even mean? I mean seriously, if Boras is basically lending these kids pennies compared to what just their signing bonuses are. They can pay it back easily even after taxes/agent fees and whatever else. It doesn't mean a player is locked in for 10 years with that agent. Agents do this all the time, it's called recruiting new clients. A player wants the best agent he can get, and hell I don't blame anyone for using Boras. I would do the exact same thing.

[ScottyDo]

You don't want to know what actually happens in some of the Dominican camps if you are that offended at what Boras did. In fact, this isn't really a story at all. Boras loaned Salcedo $70,000, and then the kid ended up getting a $1.6 million signing bonus from the Braves. Agents do things like what Boras did all the time. They just have to file such items with the Union. Boras did so.

 

 

As opposed to teams taking advantage of a foreign players ignorance to United States laws on contracts? And was does "hooked into your services" even mean? I mean seriously, if Boras is basically lending these kids pennies compared to what just their signing bonuses are. They can pay it back easily even after taxes/agent fees and whatever else. It doesn't mean a player is locked in for 10 years with that agent. Agents do this all the time, it's called recruiting new clients. A player wants the best agent he can get, and hell I don't blame anyone for using Boras. I would do the exact same thing.

 

Yup, a bunch of crap that happens in Latin American recruitment is bad. The teams exploiting Latin American players is bad. Why does that make this Boras stuff less bad?

[Paint it Black]

Yup, a bunch of crap that happens in Latin American recruitment is bad. The teams exploiting Latin American players is bad. Why does that make this Boras stuff less bad?

 

Because a lot of what happens in Latin America is an agent taking 50 to upwards of 70% of a players salary simply because some players have no other options. Boras loaned a good prospect 70 grand (again, remember, it's not that much money when compared to what the kid got from a pro team). Boras called the loan back. The kid got paid. All are happy (well Boras didn't get the client he wanted but no harm no foul). I fail to see how anyone has been wronged here. Are people championing this kids cause because they hate Boras that much?

[StrangeSox]

It's potentially exploitation. He's offering loans to people who probably have little money otherwise, and before they're going to be getting serious agent representation offers. By doing this, he's taking advantage of their current situation and short-cutting the process later on so that, when they are ready to move to professional baseball, he's the first in line as they already owe him money.

[southsider2k5]

It's potentially exploitation. He's offering loans to people who probably have little money otherwise, and before they're going to be getting serious agent representation offers. By doing this, he's taking advantage of their current situation and short-cutting the process later on so that, when they are ready to move to professional baseball, he's the first in line as they already owe him money.

 

I was struck by how similar the process is to human slavery and prostitution being propagated. Usually there is some form of "debt" that is used (normally money) to force an obligation that has to be worked off. Boras is doing the exact same thing here with his loans. If the person thinks about leaving, the debt is used an excuse to remind them exactly what their standing is (just like Boras did by calling the loan at an inopportune time).

[Paint it Black]

Wait, loaning someone 70 grand (who you expect to easily pay this loan back) is now a form of human slavery? Seriously lets turn the narrative down just a bit. Hell I would MAYBE even consider one of the opposing arguments above if Boras had ever done anything that was dishonest in his career. He hasn't, nor would he because of the possible damage to his reputation (and thus, loss of clients).

 

And why would Boras loan a kid 70 grand if he didn't think he could pay it back? Boras shoulders the risk: If the player succeeds, he pays it back, and if he fails, Boras loses his money. If anything, it increases (very marginally) Boras' incentive to help the player succeed.

 

If you want to discuss human slavery, look no further than the NCAA. But you won't find any in this thread.

[southsider2k5]

Wait, loaning someone 70 grand (who you expect to easily pay this loan back) is now a form of human slavery? Seriously lets turn the narrative down just a bit. Hell I would MAYBE even consider one of the opposing arguments above if Boras had ever done anything that was dishonest in his career. He hasn't, nor would he because of the possible damage to his reputation (and thus, loss of clients).

 

And why would Boras loan a kid 70 grand if he didn't think he could pay it back? Boras shoulders the risk: If the player succeeds, he pays it back, and if he fails, Boras loses his money. If anything, it increases (very marginally) Boras' incentive to help the player succeed.

 

If you want to discuss human slavery, look no further than the NCAA. But you won't find any in this thread.

 

Great sidebar, if anyone had actually excused the NCAA for anything.

 

It has more to do with having your financial situation dependent on the same person who is negotiating your contract. And don't give me this crap about Boras being honest. He lies to people and teams all of the time. It is documented all over the place with mythical offers coming from one and the like. Hell he flat out lied to the White Sox about Magglio Ordonez not having had any surgery when they snuck Maggs off to Europe to get him operated on in secret. He's a crook. The idea that he would exploit kids for a few bucks makes perfect sense.