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MLB Teams = Big Spenders

Immediately following this year’s August 16th MLB First-Year Player Draft signing deadline, I noted that I had heard from various sports agents and sports law scholars, that based on the strong possibility of a future mandatory (instead of the current “recommended”) slotting system, some of the big spending teams (i.e. Red Sox, Yankees) will be more willing to dish out cash to its top picks now and take chances later in the draft on players passed up by the smaller market/more stingy teams, while they still have the opportunity to pay the best players the money they deserve (or claim they deserve).

Since many people within the business of baseball have been talking up the 2011 Draft and downplaying this year’s draft talent, it appears that this year’s draft picks might have benefited a bit from teams just willing to spend more cash on their selections.  Bryce Harper received $9.9 million ($6.25 of that being a signing bonus), but he was certainly not the only bonus baby of the draft.  Overall, bonuses were up $5.5 million from last year.  If you include the guaranteed money for Bryce Harper, Yasmani Grandal, and Zach Cox, the disparity is even greater.  Players will take a total of $200.9 million from MLB teams just based on being drafted.

And it was not just the Yankees and the Red Sox spending money on their picks.  While The Red Sox were the #4 spender, they were beat out by the Washington Nationals, Pittsburgh Pirates, and Toronto Blue Jays.  Next time those teams claim to be “small market teams”, you can remind them of their draft budgets.  You could also just bring up Deadspin’s leaked financial documents.

Even though a vast majority of teams ignored MLB’s recommended slot values, The Atlanta Braves and Minnesota Twins remained extremely conservative, not going over slot with any of its picks.  But even the Braves and Twins might not be able to refrain from becoming big spenders next year; a year where it should be quite nice to be advising the top players in the draft.

“If you thought we were aggressive this year, wait until you see next year,” an American League scouting director said. “It may be our last chance to sign a lot of the high school players, and we’re going to take advantage. A lot of other teams will, too.”

If that’s the case, draft spending will surge further upward in 2011.

By Darren Heitner

Darren Adam Heitner, Esq., is a preeminent sports attorney and the founder of Heitner Legal, P.L.L.C., a Fort Lauderdale-based law firm specializing in sports law, contract negotiations, intellectual property, and arbitration. He earned his Juris Doctor from the University of Florida Levin College of Law in 2010 and a Bachelor of Arts in Political Science, magna cum laude, from the University of Florida in 2007, where he was named Valedictorian of the College of Liberal Arts and Sciences. Admitted to practice in the state bars of Florida, New York, and the District of Columbia, as well as multiple federal courts, Darren also serves as a certified arbitrator with the American Arbitration Association.

As an adjunct professor, Darren imparts his expertise through teaching Sports Law at the University of Florida Levin College of Law and Name, Image, and Likeness (NIL) at the University of Miami School of Law in the Entertainment, Arts, and Sports Law LL.M. program. His scholarly contributions include authoring several books published by the American Bar Association, such as How to Play the Game: What Every Sports Attorney Needs to Know, and numerous articles in prominent publications like Forbes, Inc. Magazine, and Above the Law. His thought leadership in NIL has earned him recognition as one of the foremost experts by The Wall Street Journal, USA TODAY, and On3, and he has been lauded as a “power player in NIL deals” by Action Network and a “top sports trademark attorney” by Sportico.

Darren’s passion for sports law led him to establish Sports Agent Blog on December 31, 2005, initially titled “I Want To Be A Sports Agent.” The platform, created as a New Year’s resolution, has grown into a cornerstone of the sports agency community, offering in-depth analysis of industry trends, legal disputes, and agent-player dynamics. His commitment to the field is further evidenced by his representation of numerous athletes and sports agents, as well as his prior role as an Adjunct Professor at Indiana University Bloomington, where he developed and taught a course on Sport Agency Management from 2011 to 2014.

Darren’s contributions have been recognized with prestigious honors, including the University of Florida’s 40 Under 40 Award, the University of Florida Levin College of Law’s Outstanding Young Alumnus Award, and designation as the best lawyer in Fort Lauderdale by Fort Lauderdale Magazine. He remains an active voice in the sports law community, sharing insights through his weekly NIL newsletter and his X posts, engaging a broad audience on legal developments in sports.