How Agent Gustavo Vazquez screwed Salvador Perez and why Giants brass tabled Sandoval talks

Close your eyes and imagine this for a moment. It's 2008 and Katy Perry's magical song about kissing girls is brand new. An intriguing 21 year old 3B/C named Pablo Sandoval has come out of nowhere to hit .345 in only 41 games. No one quite knows how good he can be, or that one day he'll be an All-Star or a World Series MVP. No one knows about the Panda-monium.

Perez may be smiling now, but he won't be
later when he realizes how much money
he'll be missing out on in the future.

Now, I want you to substitute Kansas City Royals catcher Salvador Perez for your vision of Sandoval. You can't picture Perez? Well, that's a shame, because he's one of the best young talents in the game that you probably haven't seen play-- unless you watched him catch Mariano Rivera in the All-Star Game last year at Citi Field in New York.

Then, Salvador Perez was a 22 year-old All-Star; a guy who was once signed by a rickety old Royals scouting program in Venezuela for a measly $65k. Probably similar to what Sandoval got from the Giants.

Like Panda, Perez was called up for the first time as a 21 year old, and promptly hit over .300, showing excellent defense and instincts. Recalled the following year in June of 2012, "Salvy" as he's known, hit over .300 again with 11 HR and a .993 fielding percentage in only 76 games.

Take this quote from Royals Scout Art Stewart:

“He’s one of the best young catchers I’ve seen. You gotta go back to Pudge (Ivan Rodriguez) and guys like that. He’s got the ability to be an All-Star for many years. As long as he stays healthy.”

Read more here: http://www.kansascity.com/2013/05/11/4230813/perez-has-been-quite-a-catch-for.html#storylink=cpy

Most teams would stand pat, and enjoy the fact that they had this young talent under team control through pre-arbitration and arbitration years-- usually 6, sometimes 7 years. The Royals, sick of losing games and losing their players to richer teams, decided to be aggressive and lock him up.

Indeed it is unusual for a team to offer a multi-year deal to a player still so deep under team control. There are examples of this, but the likes of Ryan Braun and Evan Longoria are just not good comparisons. Those two were blue-chippers who've been told they're great from age 10 and have behaved accordingly. They commanded big deals in comparison (but not compared to their production on the open market), and preferred to stay in their small market havens a couple years into free agency while being able to sign an open-market deal before they turn 30.

Perez's deal is different. It's completely irresponsible.

While researching this, I came upon McCovey Chronicles' fearless leader Grant Brisbee's take on the contract via SB Nation's "Baseball Nation".

It fascinated him, he couldn't stop thinking about it. It was just plain interesting. A young, rather unproven guy still under control for years signing a seemingly creative contract that was almost a no-risk deal for KC. On the other hand, it was some guaranteed money for Perez if he couldn't hack it. A win-win it seemed.

Now it's just a win for the Royals; the type of thing Royals GM Dayton Moore thinks of when he has a bad day to cheer him up. Kansas City made out like bandits, they knew it, and Pablo Sandoval's agent Gustavo Vazquez is to blame.

Until very recently, as I detailed here, Vazquez was a member of Morgan Advisory Group (MAG), and held the title of Senior Baseball Director. He was charismatic, and was an excellent recruiter. MAG's stable of players was primarily Latin American, and mostly Venezuelan (including of course Sandoval and Perez). The players felt comfortable dealing with "one of their own", and became good friends with their representation.

Gustavo Vazquez

That's where Gustavo Vazquez's skills as an agent end.

For all his skills wooing potential clients, Vazquez lacked the shrewdness and knowledge necessary to structure contracts, and there is no better example than the Salvador Perez deal.

According to a source (and yes, a legitimate source that I'm not making up, because I take this seriously), Vazquez took liberties with the Perez-KC negotiations that culminated in Perez signing "one of the most irresponsible, team-friendly contracts in the last 20 years".

The reason it was so fascinating at the time is because it didn't make sense. What player would sign away most of his promising career for $23MM at most??

The answer? A player who became too buddy-buddy with his agent, who in turn did not follow directions from his agency.

Let me ask you this. Would Scott Boras tell Salvy Perez to sign that deal? Absolutely not. Scott Boras would laugh in the Dayton Moore's face and book a tee time on his iPhone immediately. That's how ludicrous this deal was.

According to the source, Vazquez was told not to include any free agency years or any club options in the Perez deal-- a standard thing. Of course Vazquez made sure the contract included all of that stuff and more. Name one young player that gave up free agency years in a contract extension that isn't making significant money. Think Posey, Longoria, Braun.

It simply doesn't happen-- and that's why this deal was so egregiously irresponsible.

From Cot's Contracts:

Salvador Perez c
5 years/$7M (2012-16), plus 2017-19 options

• 5 years/$7M (2012-16), plus 2017-19 club options
• signed extension with Kansas City 2/27/12
• 12:$0.75M, 13:$1M, 14:$1.5M, 15:$1.75M, 16:$2M, 17:$3.75M club option,18:$5M club option, 19:$6M club option
• award bonuses, including $50,000 for All-Star selection
• 2017-19 salaries may increase by additional $5M overall based on performance and awards in 2012-16 (earns bonuses by reaching 4 points, with 1 point each for All-Star selection, Gold Glove, Silver Slugger, top 15 in MVP vote)
• 1 year (2011)
• contract purchased by Kansas City 8/10/11
• signed by Kansas City 2006 as an amateur free agent from Venezuela

Honestly, when I first saw this, knowing how valuable Perez is, I did a triple take. Huh? 5 years, $7MM? That's barely a raise over what he'd make already-- the minimum. Then, you look at all his arbitration years ('15-'17), completely swallowed up-- years where knowing what we know now, he'd certainly eclipse those totals. On top of it, the Royals either get an out in the form of THREE club options, or can retain Perez through his 29th birthday at the rate of a backup catcher. The incentive system is childlike, absurd, and who knows if any of that will vest. I mean... a point system? My 5th grade teacher had a point system for when we got out of line. 3 points and we got sent out of the classroom.

Again, why would Perez sign this deal?

You're talking about a poor kid from Venezuela who had his mom pitch him corn kernels while he hit them with a broomstick. He was a 22 year old from from South America in the middle of Kansas City, Missouri. Most Americans at that age are naive fools as well. I don't blame him necessarily. I also don't blame the Royals. There's a reason there are agents and lawyers and a Players Union-- to protect players from being taken advantage of.

It was pure negligence on Vazquez's part-- a guy who simply signed whatever KC put in front of him and effectively signed away his client's best years for peanuts. If Perez were to become just a third of the player Buster Posey is, he'd be making $48MM over that 8 year period-- very similar to the initial 6 year deal signed by Longoria.

This contract was also an embarrassment to Morgan Advisory Group, who trusted their supposed "Senior Baseball Director" to follow directions that came from the top-- presumably, but not confirmed, Ryan Morgan himself.

And if you look at the timeline of the Perez contract, more interesting facts come to light.

The deal was made official on 2/27//12. On the surface, you'd think this is irrelevant. However, a closer look at what this date corresponded with is telling.

MAG represents a good deal of NFL players and rookies trying to get drafted. It is now the biggest part of their business after Gustavo Vazquez and Michel Velasquez stole their entire MLB Portfolio in a rogue move that I talked about yesterday.

And where do agents and players go before the NFL Draft? The NFL Combine in Indianapolis.

The Combine was held in Indy from 2/22/12 until 2/28/12, and presumably, most of MAG was either there or focusing on that while Vazquez was mortgaging away his client's future in Kansas City or at Spring Training in Arizona.

What does this have to do with the Giants?

Vazquez and his henchman Velasquez are now "representing" the maddeningly lovable Pablo Sandoval, who is set to hit the open market after this season. Brian Sabean is "at the end of his rope" and contract talks have been tabled. As I said yesterday, you cannot blame Sabean or Bobby Evans for suspending talks. You're dealing with two geniuses that are getting sued by their former employer for $5MM after stealing equipment, money, and MAG's entire MLB client list in a stupid scheme. It's like talking to a brick wall.

You're talking about a couple of guys operating on, essentially, stolen capital that is almost certainly beginning to run out. These guys want need to make a huge splash with their biggest client with their new agency. If for example, Pablo were to make the wise decision and go back to Morgan or even choose Scott Boras, who he was seen speaking to in LA, Vazquez's house of cards would collapse immediately.

These guys would likely sell their own mothers to improve their situations, and that's how they view Sandoval-- as their meal ticket.

Unless their 5 years, $90MM is met, they basically have nothing to say. No matter that comparing an injury prone 3B who has only achieved an OPS over .800 twice in 5 full seasons to a 5 tool OF that never misses a game is absurd. They want Pence money, and they want it now.

The comparison baseline doesn't even make sense.

If they want to compare him to someone and reach for the stars, why don't you start with David Wright or Evan Longoria, and work your way down to the closest comparison, Ryan Zimmerman of the Nats.

Zimmerman is almost assuredly overpaid, and has now developed an arthritic throwing shoulder in the first year of a 6yr./$100MM deal. It's a cautionary tale indeed. Now they're hoping  to move Zimm over to 1st or teach him how to throw sidearm.

So yes, the deal these clowns seek is valid when compared to Zimmerman's deal in some ways, but that is assuming that Pablo is Zimmerman's equal. He simply hasn't been. Zimmerman is a career .286 hitter with 180 career HR. Pablo has a slightly higher career average, but just doesn't have the track record.

The Nats made a mistake with that contract, and now it's the baseline for Sandoval. Isn't it great how this works?

As I've said, it's not the money factor that bugs me about this situation, or even Sandoval's on-field play. It's about two unprofessional shadesters unwilling to negotiate with an organization that is unquestionably the most loyal in baseball.

The Giants have locked up (for better or worse) every single player that has either helped them win, or is loved by fans. Aubrey Huff, Scutaro, Bumgarner, Posey, Lincecum, Vogelsong, Cain, Pence, etc., etc. They even gave Barry Zito more dignity and chances at redemption than Pope Francis would have.

They want to keep Sandoval in San Francisco, but if you're dealing with a couple of dopes that won't negotiate or be reasonable, then you face the near certainty that the player you're trying to re-sign will end up hitting the open market and a bidding war will ensue.

To be honest, that's how I see this shaking out. It has never been Vazquez's goal to get a deal done with the Giants. His goal is to have his client fought over and overpaid, and that's what we're looking at.

Whether or not you think any of this is relevant, I don't know, but it is an interesting story that directly affects the Giants, and I cannot for the life of me understand why this facet of the Sandoval negotiations has not been blown up yet. If these guys feel the heat on them, they may be more likely to cut bait with their hardball stance and sign whatever the Giants put in front of them, just like they did to Salvador Perez.

Sandoval contract talks cut off partly due to shady agents

Like you guys, I'm a bit giddy over the Giants' hot start. They're crushing the ball everywhere, and it's nice to know that it's Brandon Belt's world and that we're just living in it.

Other than some early concerns about our rotation, I'm most concerned by the Pablo Sandoval contract situation, and hope that this doesn't turn into a sour-tasting circus.

Gustavo Vazquez while still with Morgan Advisory Group.

Their website is down for construction as they lick their 

wounds and pick up the pieces.

As you know, he is in a contract year. He certainly knows it because he lost a bunch of weight, and has (mis?) placed his trust in his team of agents-- who themselves are about as shady as the absurd 5 year, $90MM contract demands they're making.

Sandoval is demanding Hunter Pence's contract as a STARTING point. Having the gall and huevos to even start there is reason for alarm-- and we're not even talking about Panda's on-field play and weight issues. Secondly, Pablo has chosen a couple of real winners to represent him, and they're out for a payday just as much as The Panda is.

Sandoval is represented by Gustavo Vazquez and Michel Velasquez, who are not exactly the type of people you work with "in good faith". Most agents are by nature, serpentine sleaze merchants and fly-by-night shadesters, but most manage to keep their back alley dealings out of the papers.

These two are not such agents.

From ESPN's Jerry Crasnick:

Gustavo Vasquez and partner Michel Velasquez are defendants in a civil action suit filed in South Florida District Court by Morgan Advisory Group of California. The suit seeks more than $5 million in damages for breach of contract and fiduciary duty and fraud, among several other allegations. 

The suit alleges that Vasquez illegally conspired to use his new company against the Morgan group by "diverting away clients, misappropriating funds, and interfering with and harming the present and future business relationships between MAG and its former and current clients." 

The suit also seeks damages for baseball equipment, computers and other items that the defendants failed to return.

"This lawsuit is not about retribution or payback," said Darren Heitner, the lawyer for the plaintiff. "It's about seeking just relief for damages that were caused to Morgan Advisory Group. Ryan Morgan believed in these guys and pumped money into their fraudulent scheme, and the result is that he's been left without a baseball division."

 Vasquez left Morgan Advisory Group last year to form SPS Sports Group and took Sandoval, Kansas City catcher Salvador Perez, Pittsburgh pitcher Jeanmar Gomez, Atlanta reliever Luis Avilan and numerous other players with him to his new agency. 

So, essentially, these two guys decided to go out for themselves, and began an elaborate clandestine exit strategy that involved poaching every baseball client Morgan represented, equipment, contacts,  and property. Most of all, the suit alleges that these two dynamite individuals were fraudulently siphoning money to themselves in order to get their "business" up and running.

That's called embezzlement, larceny, and being total jerks.

This is what the Giants are dealing with: an immature, inconsistent player represented by scumbags. No wonder Brian Sabean said he's "at the end of his rope". Can anyone blame him? He has to talk to these guys. They're about as reasonable as a mentally ill junkie ranting and raving on a corner in the Tenderloin.

It's not even Panda's play, or talent, or anything else baseball related that's aggravating about the situation. It's more about his poor choices over the length of his still young career. Sticking with these sleazards to negotiate the first big contract of his career is going to end badly; whether it is because these guys trick him into signing away too much of his money, or him ending up on some lousy team and eating his way out of the league. They are blatantly using Sandoval to make their first big splash with their new agency, and he's their meal ticket to fancy cars and Cuban cigars.

Of course it could turn out okay, but the combination of Sandoval and these guys just seems less than ideal.

According to the Houston Chronicle, MLB puts no commission limits on player agents, and on average, MLB agents make between 4-10% of a player's contract:

An agent’s commission varies, based on the sport he represents. Generally, a sports agent earns between 4 and 10 percent of an athlete’s playing contract, though some leagues place limits on what percentage an agent can charge in commission. For example, the National Football League states that an agent can't receive more than 3 percent of player salaries. The National Basketball Association places the limit at 3 percent too. Major League Baseball and the National Hockey League don't have any limits on agent commissions, however.

Whaddayou wanna bet that the Vaz/Velas Dream Team take the full 10% commission (or more) on this $90MM Sandoval is supposedly worth. Yeah. Pretty solid bet. Then they're going to take that $9MM, buy giant houses in Miami Beach and swindle other impressionable Latin American talents into giving up too big a chunk of their salaries.

Michel "Michael" Velasquez (left).

Not to say any of this behavior is new. These guys are certainly far from the first to operate like this-- Albert Pujols's agent Dan Lozano comes to mind, the man dubbed "The King of Sleaze Mountain" in a revealing Deadspin article.

It makes me begin to think that Scott Boras isn't so bad after all. At least we know what we're dealing with when it comes to him.

I do really apologize for pissing all over our hot start parade, but there's a fire smoldering underneath the surface, and I'm just trying to put it out a little bit before it starts burning out of control. I also want you all to prepare yourselves for the possibility that this is the last year you see Panda in a Giants uniform. In the end, it's all about the money and good business. But in Sandoval's agents' case-- just about the money. Good business be damned.