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Monday, September 22, 2008
Pirates sign draft pick, avoid labor confusion

A couple of weeks ago, I linked to commentary on a brewing dispute between the Pittsburgh Pirates and their top draft pick, Pedro Alvarez, that threatened to raise some open issues of the labor agreement. Well, the question is moot (the car is mine); the Pirates and Alvarez have agreed on a contract worth approximately $ 6.4 million, slightly more than the original purported agreement, but over a longer term.

Update, 6:30 p.m. E.D.T., Monday:

Mark Fenster at PrawfsBlawg (whose original commentary I linked to and who comes at this as a life-long Pirates fan), gives his thoughts on the deal. Note, by the way, discrepancies as to the precise amount of the final deal.


Good for him! I think it was a good move on his part to ditch Boras and sign on his own. Boras was only looking out for himself and trying to drive the market up well above slot pricing.

Blogger Pbenn001 -- 9/22/2008 3:12 PM  

By Dejan Kovacevic | 1:27 p.m. Monday

The next step toward the Pirates' finishing a contract with top draft pick Pedro Alvarez, with the financial agreement having been struck last night, will be resolution of the grievance filed by the Major League Baseball Players Association against commissioner Bud Selig's office. Talks are underway to that effect this afternoon.

The next hearing before arbitrator Shyam Das is scheduled for tomorrow in New York, so there is some urgency.

There has been no date set yet for Alvarez to come to Pittsburgh for his physical.

Blogger Pbenn001 -- 9/22/2008 3:24 PM  

Did he ditch Boras?

Anonymous Anonymous -- 9/22/2008 8:02 PM  

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Blogger Frequent Reader -- 9/23/2008 7:24 AM  

Yes, he dropped Boras because Boras wanted him to take $400k more than he wanted, which risked him signing after the deadline and not playing in MiLB this season, so Alvarez ditched him and signed on his own.

Blogger Pbenn001 -- 9/23/2008 10:59 AM  


Can you link to an article showing where Alvarez dropped Boras?

I haven't seen that any where.

Anonymous Anonymous -- 9/23/2008 12:33 PM  

I tried posting a correction to my comment, but it's not showing up. Basically, Alvarez went behind Boras's back and signed the deal with the Pirates because they were dangerously close to not making the deadline.

That is why Boras filed a grievance with the Union. He is still Alvarez's agent, however. Sorry for the confusion.

Blogger Pbenn001 -- 9/23/2008 12:47 PM  

A couple of notes, just in case anyone is interested:

Jim Callis of Baseball America and Dejan Kovacevic of the Pittsburgh Post-Gazette have all kinds of details on the Pedro Alvarez situation:

* After Bud Selig testified on the first day of the hearing, Scott Boras and the Pirates got in touch (it's not known who broke the ice). The Pirates renegotiation doesn't look great for president Frank Coonelly, who was publicly against the idea.
* Callis implies that MLB and the Pirates may have made a calculated move by finishing the Alvarez deal after the deadline. Maybe Boras and Alvarez aren't the villains here, after all. Unlike the Julio Borbon signing in '07, the Pirates didn't contact the players union for approval of the extension. Hopefully Alvarez is given a fair shake by baseball fans.
* Callis considers the new deal an improvement for Alvarez and Boras, despite the present-day value of $5.67MM. The Pirates save face with the lower number, but ultimately it looks like Boras and Alvarez won this battle.

Blogger Pbenn001 -- 9/23/2008 12:50 PM  

Accounting for interest and inflation, Alvarez's final deal is worth $5.67 million (which is less than the $6 million minor league deal he originally signed).

Blogger Pbenn001 -- 9/23/2008 12:56 PM  


You can't just look at the present value of the deal. It's a major league contract, which puts him on the 40 man and gives him 3 option years (meaning he has to be on the 25 man in 4 years). This is a better deal for him.

Blogger Rick Karcher -- 9/23/2008 3:46 PM  


Thanks for the correction. I completely misread that it was a major league deal instead of a minor league deal. Alvarez definitely came out on top considering what his previous deal was going to be. Good for him.

Blogger Pbenn001 -- 9/23/2008 11:14 PM  

Recent Finance issue nearly caused an insurance company to bankrupt.

Who fault? Shouldn’t we take this opportunity to tune back the incorrect system, or we will wait till the next few generations to meet the similar issues again…..?

Should the top management bare responsibility....?

The top management of the ( not private company ) listed company salary should be tied a portion of it to the shares.... so when the shares price drop, it don't just penalize the investors, but those who don't take care of the company.....

They only talk about how bad the crsis will be, but they did not give regulation measures…..

Since the congress is discussing….. Shouldn’t we concern about its individual congress members standpoint and their opposition candidates standpoint within their own states…….

Should $700b be pump into the all industries of the economy instead?


是谁的错。。。。? 不在这个时候扶正回来,难道要等到下几代在遇到同样的事吗?





Anonymous Anonymous -- 9/25/2008 11:30 AM  

Some more reading just in case anyone is interested:

Baseball America's Jim Callis was told by Pirates' GM Frank Coonelly that there was no premeditated plan to negotiate after the deadline.

Also, Coonelly suggested that Alvarez's new deal is comparable to the original, to which Scott Boras jumped in saying that it was a favorable change and much different from the original:

Blogger Pbenn001 -- 9/25/2008 5:32 PM  

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