December 23, 2009

Highlights of the year in sports law:  rookie contract negotiations.

In 2009 two rookie contract negotiations received much attention. One in baseball, the other in football. Stephen Strasburg, drafted number one by the Washington Senators, and Michael Crabtree, a first round draft choice of the San Francisco 49ers, both signed with their respective teams, but it was the process of each of these deals that garnered such attention.

Since moving from Montreal, The Washington Senators have not exactly inspired fan enthusiasm in the nation’s capital. The cellar dwelling team needed to give their fans hope for the future; particularly after failing to sign their 2008 first round draft pick pitcher Aaron Crow. Well, along comes Stephen Strasburg, who many were calling a once-in-a-decade pitcher. The Senators, with the first pick in the draft, had little choice but to select Strasburg. What might stand in the way of getting a deal done would be Strasburg's agent Scott Boras. Boras had a history of having draft picks sit out a year if the money did not match the value Boras had envisioned for the player. One of the more famous examples of this occurred with JD Drew in 1997, when the Phillies were unable to come to terms with Boras and Drew.

Between the draft and the August 18 signing deadline all sorts of rumors were flying around. Talk of Strasburg seeking a bonus of close to 50 million was heard frequently. Talk of Strasburg leaving the country and heading to Japan to pitch was also popular. It seemed Boras had the Nationals with their backs to the wall. They had to get a deal done to keep any hope alive in DC, but they couldn't mortgage the franchise to do it. Yet, Boras also had pressure: it certainly wouldn't be good PR for Boras to have another draft choice sit out a year. Would the deal, in fact, get done? As the deadline neared it was finally announced that a deal was reached. There wasn't a 50 million dollar bonus, but Strasburg ended up with 15 million dollars guaranteed, which was still a record setting deal. So it did get done, the Senators got their man, and Boras took care of his client.

Here are two links: from June after the draft; and after the deal was reached.

http://planetnj.net/nats/?p=334

http://www.borasblog.com/borasblog/stephen-strasburg/

Michael Crabtree had a been a standout wide receiver at Texas Tech.  Crabtree's finest moment came in Tech's 2008 upset of Texas with his last second heroics. Crabtree and his agent Eugene Parker had expectations that Crabtree would certainly be the first wide receiver selected in the 2009 NFL draft; however a foot injury would keep Crabtree from working out at the combine and Texas Tech's pro day. Next it was deemed Crabtree would need surgery to give him the fastest chance to heal the injury. With questions surrounding Crabtree's health, Crabtree fell to the 49ers as the 10th overall pick in the first round and the second wide receiver taken in the draft.

The 49ers viewed Crabtree as the tenth player drafted overall. This view did not match the Crabtee entourage's expectations and a prolonged holdout ensued. The usual threats and counterthreats then took place and before long Crabtree had missed the first several weeks of the NFL regular season. At this point in time the pressure increased on Crabtree's agent, Eugene Parker, to get a deal done, and by early October enough movement came from the 49ers to produce a contract. It may not have been exactly what Crabtree had envisioned, but it allowed him to start his rookie season rather than missing it altogether.


For further details review the following three links.