The super agent Scott Boras often gets a bad ‘rap’ for squeezing every last nickel out of a deal, but that is why many players choose Boras to represent them as the number of years to maximize income in sports is very limited and players want to capitalize on it. Generally Scott Boras delivers big results, and earns his fee in the process. Boras gets paid well for his services which goes far beyond just negotiating contracts, and it’s rumored that Boras gets a 5% commission (the maximum allowed by the MLBPA) on all salaries and even a higher percentage on sports marketing opportunities.
Vince Gennaro the author of “Diamond Dollars: The Economics of Winning in Baseball” and a consultant to MLB teams while also appearing regularly on MLB Network talks all the time about the “Scott Boras Effect”. Gennaro is a proud stats geek and the President of the Society for American Baseball Research (SABR) while teaching Sports Business Management programs at Columbia University, and he calculated back in 2011 that Boras negotiated 6% of the 959 MLB free-agent contracts signed between 2004 and 2011 while capturing 21% of the total dollars committed, with the average Boras client earning $25.8 million more than the average non-Boras client. Controlling for factors such as player age, expected performance, and “marquee” value, Gennaro also estimated that Boras using expert negotiating skill, was responsible for 39% of that $25.8 million premium. That’s the “Scott Boras Effect”.
For years there has been the grandstand chatter that Scott Boras has too much influence on the Washington Nationals. When the Nats signed Max Scherzer earlier this year, Barry Svrluga wrote an article titled, “Does Scott Boras run the Nationals?” and Svrluga followed that up with,
“There has been, over the past four days, a bit of a conspiracy theory surrounding the Washington Nationals, who you might have heard bought the services of right-hander Max Scherzer for seven years and a cool $210 million. Scherzer is represented by Scott Boras, the most prominent agent in the game.”
When Scott Boras talks, people listen as evidenced any time you see him at the Winter Meetings, GM Meetings, or even the All Star game festivities. Boras appeared on MLB Network radio to talk about several subjects from the CBA to Chen to Chris Davis to Denard Span.