Perfect Game, the world’s largest youth baseball tournament and scouting service, is expected to officially agree soon on a multi-year memorabilia deal with Fanatics for an undisclosed amount. The deal involves Fanatics producing and distributing trading cards, collectibles and other memorabilia of Perfect Game athletes beginning later this year.
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While it’s seen as a landmark deal for Perfect Game, the contract has stoked worries among a group of baseball agents, many of whom believe Perfect Game’s requirement that amateur players sign away their name, image and likeness rights to participate in tournaments is exploitative, unethical and costing players future earnings.
The Athletic spoke to more than a half-dozen agents, each representing different agencies, and all had concerns about the arrangement.
“We have warned players for the past two years that Perfect Game is now (signing) away your individual rights for cards and for other things that should not be the design of the platform,” said Scott Boras, arguably the most powerful agent in the sport. “They have now gotten into profit-taking on this. We’re letting all young athletes know this is a reason not to sign their documents, not to participate. If they demand that, I wouldn’t recommend student-athletes give away those rights. Why would they?”
Agents can not officially represent amateur players, but can advise them until they are drafted by a professional organization.
Added another veteran agent, who spoke on the condition of anonymity to avoid any blowback for players he advises: “They are getting kids underage to sign contracts with no representation at all, and parents (also sign) who don’t understand the ramifications. It’s unethical and borderline illegal. They know that and they’re still doing it. There should be a class action lawsuit against Perfect Game by the parents.”
Perfect Game, which announced new chief executive officer Rob Ponger and chairman Rick Thurman in August 2022, has a presence in 41 states and 12 different countries. It hosts travel team tournaments and individual showcase events, which almost always require participation fees that vary by age and event.
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Neither Perfect Game nor Fanatics responded to a request for comment.
In a waiver release form on Perfect Game’s website — the title of which, “participantrelease2019,” suggests it’s at least five years old — there’s a section called “Media Release.” Within that, participants are informed that their signature at the bottom of the document grants Perfect Game “the absolute and irrevocable right” to use their name, signature, likeness, image, voice and/or appearance in any photos, videos, audio, digital images or cards on behalf of any Perfect Game or its affiliates, at any present and future events related to Perfect Game.
The section also states participants will not receive any compensation for the use of those things, and releases Perfect Game from any and all claims and demands related to usage and ownership of the participant’s name, signature, likeliness, image, voice and appearance.
The Athletic also viewed a copy of the waiver for the 2023 Perfect Game All-American Classic — featuring 60 of the country’s top high school players — which had similar conditions. Players who participate sign hundreds of items just for that game, according to two agents.
Typically, when players are drafted in a high round by an MLB team, they get a rookie card deal or a memorabilia deal.
“Now Fanatics owns all of this and they can say, ‘We don’t need to do a deal with you, we have your signature already,’” said another agent. “Why would they pay for more when they have a warehouse full of stickers you’ve signed and consented to already?”
The Perfect Game waiver’s media section has no end date or expiration on Perfect Game’s ownership of these name, image and likeness rights, which multiple agents considered the most troubling part. When players sign this form, they are signing away their rights in perpetuity.
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That means that Perfect Game and Fanatics would not just be able to sell hundreds of autographed cards and memorabilia while a player is an amateur; the company — according to emails obtained by The Athletic — is also operating under the belief that they can continue to sell and profit off memorabilia and cards for players who later play in college and the big leagues.
Even when those players retire, Perfect Game owns the rights they signed over involving any Perfect Game event or signed memorabilia. Perfect Game has a stranglehold on youth baseball and, industry sources say, preys perfectly on parents’ fear: Participate or you’ll be left behind.
According to Perfect Game’s website, more than 2,000 of their alumni have appeared in the big leagues and more than 14,000 players have been drafted. Parents pay thousands of dollars for tournaments to help their kids get ranked or scouted. As several agents pointed out, by the time youth players are good enough to need an agent, they may have already signed their rights away.
“Parents get so excited when they find out their kid can have his own baseball card,” said the veteran agent. “They don’t consider the fine print.”
Perfect Game did not respond when asked to clarify what happens if a player opts to not sign the participation forms, or whether there is an end date on how long Perfect Game can continue to use its alumni — including Mike Trout, Mookie Betts, Freddie Freeman and Bryce Harper — and profit off their NILs.
“We want to become a content machine,” Ponger told Forbes last month. “It’s not just about how hard you are throwing, but we really want to shine a spotlight on the kids and give them an opportunity to create their own brand as well.”
Fanatics, which has invested heavily in baseball lately, made headlines in 2022 when it pried the rights to make trading cards from Topps, taking over MLB licensing and ending a relationship that dated back to 1952, and later bought Topps outright. Fanatics has also made the MLB uniforms since 2017, and since 2020 has collaborated with Nike on the design — the latest iteration of which was panned by MLB players and fans and will be adjusted for 2025.
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Boras said he’s been advising clients for the past two years to not participate in Perfect Game.
“There are many other facets of illustrating your skills where you don’t need Perfect Game, and to give away rights that potentially could be of substantial value to you going forward,” he said. “That is not the original intent of what this was, which was a fee-for-service. Now it’s a fee-for-service, plus a loss of monumental rights for no remuneration to the player.”
The Athletic’s Ken Rosenthal contributed to this story.
(Top photo: Mike Janes / Four Seam Images via AP)
