MLB Agent’s New Game Plan for Representing Players

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Aug. 15 (Bloomberg) –- “Performance Baseball” Co-Founder Jeff Beck discusses his business model for representing professional baseball players. He speaks on “Street Smart.” (Source: Bloomberg)

And has represented all these stars, including all kinds of guys.

Let me ask you about your business model for representing all these athletes, and why it is a unique approach.

1.5% is the commission you are asking for?

Yeah.

Thank you for having me.

I want to clarify.

My partner being stringfellow is the one who negotiated the deal's for billy wagner and bautista and coco.

Why come forward with 1.5%? it is competitive.

I would rather pay 1.5% of my salary than 5%. right.

When we started the business, it was 5% and then 4% and we had a player negotiate us down to 3%. i am seeing what happened when schwab came into the traditional brokerage industry.

They prove the relationship -- that the economics were more important.

We think it is a more professional rate.

We are not reducing our fee, though.

How do you say you're not reducing your fee?

Is it because you are getting that much more money for your clients or you have high profile clients?

If you could have charged 3% and now you are charging 1.5%, you're obviously getting less.

What we have done is restructured our business grade we have restructured the cost structure of the business.

Our services are now focused and specialized just on the business of baseball.

We do contracts, we advise players on issues throughout their career, and we negotiate -- we don't do all the other things -- we don't do the marketing, the investment work.

We simply focus on one thing.

[inaudible] i better tell my agent to get on it.

I don't think he's doing my taxes.

Jeff, before i let you go, what kind of reaction are you receiving from other people in the industry that do what you do?

I think they see it coming.

I think we wanted to be the first there.

We are trying to escape to where the [inaudible] is going to be.

I think it hurts a lot of folks here it is going to clean out a lot of riffraff in the business, i can assure you that.

There are over 400 agents in the business for 750 active players, plus a few guys on the d.l. you have 400 agents trying to represent these players.

It is fragmented, and it really needs to be [inaudible] thank you very much, jeff beck with pro performance.

This text has been automatically generated. It may not be 100% accurate.

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