FanPost

Long-Term Deals for Bright Young Stars

 

Pursuant to a discussion which developed in the initial Hosmer call-up thread, I thought it would be a good chance to spur conversation.  Eric Hosmer, assuming he develops as expected, will likely be beyond the price range of the KC Royals at maturity.  This is nothing new to small market clubs, and most have taken to signing their young stars early, offering financial security in exchange for buying out prime years at what are likely discount rates (never forget the marginal value of your first $20M or so.)   The most extreme example so far is likely Evan Longoria, who was signed long-term almost immediately after debuting in MLB.  In the article below, Hosmer's agent Scott Boras seems to put the kibosh on the idea. 

 

Were you KC, what would you do?  Generally, do you think large-scale investment in largely unproven commodities is a worthwhile strategy?

Agent Scott Boras, who represents Hosmer, scuttled those hopes Thursday by telling Yahoo! Sports that baseball’s changing financial picture argues against such an extension at this time.

“Athletes have to know that you have to look at the market you’re in,’ Boras said. “You can’t look at the markets of the past. For players like Hosmer, as you go back and look, as (Mark) Teixeira had his own market and (Prince) Fielder had his own market, Hosmer will have his own.

“And something tells me it's going to be a rather eventful one.”

The Royals have not expressed any interest publicly in signing Hosmer to the type of long-term deal as a rookie that Tampa Bay negotiated in 2008 with third baseman Evan Longoria.

Boras’ message seems clear: Don’t bother trying. He cited the anticipation of increased television revenues in coming years that should impact Hosmer’s expected eligibility for arbitration after 2013 and free agency after 2017.

“The arbitration markets and free agent markets are going to be vastly different,” Boras predicted. “Sports are not DVR’d. People stay and watch it. They don't flip channels. There's a broader way of understanding the market. There's huge values in sports broadcasting rights.”


Read more: http://www.kansascity.com/2011/05/12/2871403/royals-notebook-coleman-says-first.html#ixzz1MEUfucRo
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