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Posted: Tuesday July 22, 2008 11:24PM; Updated: Wednesday July 23, 2008 10:15AM

Ties between Dominican prospects and bookie raise concerns for MLB

Story Highlights
  • Edgar Mercedes helped develop Michel Inoa into an MLB prospect
  • Mercedes runs a legal sports book in the Dominican Republic
  • A 2006 law capped the amount a buscon can take from a signing bonus
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Raymond Abreu and Billy Beane and Michel Inoa and Edgar Mercedes
When Michel Inoa was introduced by the A's earlier this month, he was flanked on his right by Oakland GM Billy Beane and on his left by Edgar Mercedes.
AP

By Melissa Segura, SI.com

HAINA, Dominican Republic -- Edgar Mercedes has made a fortune taking bets. So when the bookie saw 13-year-old Michel Inoa throw 78 mph off a mound in 2005 he knew that the lanky, 6-foot-3 right-hander was worth the wager. He's workable. He's workable, Mercedes kept saying to himself as he thought of the adjustments he would make to Inoa's delivery: the flick of his wrist, the angle of his waist. Mercedes, whose own career as a catcher had been derailed by injuries, had found the next best thing to being a professional ballplayer -- developing them.

Now, after three years under Mercedes' tutelage, Inoa and Mercedes sidled up to one another for a photo-op at the press conference that the Oakland Athletics hosted on July 2 to announce that they had just bestowed a record $4.25 million signing bonus upon the 16-year-old Inoa. The amount nearly doubled the largest bonus ever issued to a Latin American amateur not from Cuba and signaled the increasing dependence that major league teams have on Latino prospects.

But just as Inoa represents the face of a new generation of players, so too does Mercedes, 39, mark a new breed of buscones. Once marginalized, often poor, has-been (or never-were) baseball players looking to latch on to -- and profit from -- the island's national sport by training and then marketing promising prospects to major league teams, buscones have gone mainstream.

Mercedes is emblematic of the new buscon: educated, wealthy and savvy. More agent than coach, more administrator than fungoes-hitter, he and other well-heeled Dominicans have seen the tremendous business opportunities in developing baseball players for profit. Using his financial muscle, Mercedes has established Born to Play, a baseball academy that lures some of the best amateur coaches, nutritionists and English teachers from the island with the promise of a steady, healthy paycheck. Amenities like these help attract top prospects, who pledge buscones such as Mercedes a percentage of their future signing bonuses.

In 2006 Dominican president Leonel Fernandez signed legislation called the General Law of Sports, which included a section capping the amount that a buscon could claim from a player's signing bonus to 15 percent for a buscon who invests two years training a player and 10 percent for a year or less of work. In 2007 one high-ranking Dominican government official told SI.com that the limits were law in theory but a suggestion in reality, because there were no means to enforce them. Sources say many buscones take anywhere from 10 to 40 percent for providing a player with coaching, equipment and food. But supplying these services requires seed money -- something that most buscones do not have. So today's smaller, less-financially solvent buscones usually sell their prospects to a larger operation or player academy, adding another layer to a complex, informal and unregulated player development process. With unofficial estimates placing the number of buscones anywhere from 300 to 1,300, one agent representing Dominican prospects says, "The players are now traded like cattle."

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In the town of Haina, just 10 miles west of Santo Domingo, down a narrow road and behind a towering gate, sits a tree-lined baseball diamond that Mercedes leases. He is able to afford the cost of operating Born to Play -- which also includes a three-story townhouse filled with bunk beds to accommodate most of the 25 prospects in his program -- in part because of his success owning and operating Out 27, a sports book in the Dominican Republic. With a swanky sports book bar in Santiago (the sort of place where most wagers are made) and 45 branches around the island, Mercedes won't say how much he has made off his sports books other than to admit that he's done well. Sports books are legal in the Dominican Republic and are licensed and regulated by the country's State Secretary of Sports, Physical Education and Recreation (or SEDEFIR, as it's known by its Spanish-language acronym in the Dominican). Since Major League Baseball does not employ, sanction or in any way oversee buscones, it has no rules to bar a bookmaker such as Mercedes, who sets the local betting lines on professional baseball games played both in the Dominican Republic and the U.S. and commutes two days a week from his Out 27 office in Santiago to Haina to supervise his academy.

Inoa, Mercedes and the Athletics have not been accused of any wrongdoing. But that a bookmaker has a cozy relationship with MLB-bound players -- and particularly a high-profile prospect like Inoa, described by various scouts as a once-in-a-generation talent -- is enough to make some in the game wince. "It's something we considered," says one scouting director whose team pursued Inoa, "because you also consider the character of the kid." A's spokesman Bob Rose told SI.com in an email last week, "[General manager] Billy [Beane] told me that the negotiations were handled solely through Inoa's agent, Adam Katz, not Mercedes. Beyond that, we don't have anything to add."

In many cases buscones broker deals with major league teams directly, but Mercedes says he retained Katz, a U.S.-based agent who is well-versed in large contracts, about a year before negotiations for Inoa began, "because Michel was a special case."

"I could not have done this without [Mercedes]. He was an outstanding partner. He was outstanding to work with," Katz told SI.com on Tuesday, stressing that Mercedes is not an employee of Katz's agency and that their relationship is informal. "I don't know the nature of the [Mercedes sports book] business. It's my understanding that everything he does is legal but I don't have comment on it."

When asked about the potential problems caused by his work as a bookie and (as he prefers to consider himself) an agent, Mercedes is adamant that there is no wrongdoing on his part. "There's no way I can have any influence whatsoever in any major league game with any kid," says Mercedes, who points to European soccer teams with gaming house logos on their jerseys as evidence that sports and betting are not necessarily like church and state. "I'm just working with 16-year-old kids. It's legal in this country. It has never been an issue. It has never come up. People who know me know that would never happen. We [sports book owners] have no need to even go down that path. It's no way we could even fathom going down that path. There's an association that watches for those things. You can't even think of it. You don't need to own a sports book to try and talk someone to do something wrong. We're totally against that because it hurts the business. Anyone that is licensed, that's the most stupid thing anyone could do. You would automatically know when someone would do that."

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