Draft appeal is catching on at top


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Baseball's annual free agent draft takes place Tuesday and it has suddenly dawned on the people who run Major League Baseball that this is an event that could be used as a huge promotional tool for the game. Given that the first draft was in 1965, it must be assumed that these same people are somewhat slow learners. It wasn't long ago that baseball tried to hide the results of this event. Only a little more than a decade ago, teams were instructed not to release their full draft lists beyond the first round or so, out of fear that nefarious agents would use this top-secret information to wrangle bigger signing bonuses for their clients.

Now, the draft has come full circle. This year, for the first time, the draft will be held over two days, with the first few rounds held in prime time. The draft will be broadcast on the new MLB Network, giving the draft the same "big event" feel normally associated with the NFL and NBA drafts. In all likelihood, baseball's annual draft will never match those of their football and basketball brethren for one simple reason: high school baseball and college baseball, with few notable exceptions, will never come to close to matching the widespread appeal and acceptance of college football and college basketball in the states.

While virtually every player in the first round of the NFL and NBA are familiar to dedicated sports fans, the first-round selections in baseball's draft are largely anonymous. Moreover, there is no guarantee that even Top 10 picks will ever reach the major leagues, much less become stars. Projecting an 18-year-old high school star's career path is a decidedly inexact science. This year, the draft at least boasts some star power at the top.

Projected No 1 pick, Stephen Strasburg, a San Diego State junior with other worldly numbers, including 195 strikeouts in 109 innings with just 19 walks in that span. Strasburg routinely throws his fastball in the mid-to-high 90s and has been clocked at times at 103 mph. He's expected to be selected by the Washington Nationals, who could sorely use a player of Strasburg's potential and ticket-selling ability.

Some major league scouts believe that Strasburg could pitch successfully in the big leagues now, but the Nationals will resist the temptation to introduce him in the second-half of the season, opting to protect his long-term development. Beyond waiting for once-in-a-generation talents like Strasburg to come along, there's much that MLB could do to further enhance the draft. They could allow the trade of draft picks. Baseball is the only one of the four major North American sports which forbids this practice, which undoubtedly contributes to the baseball draft's low visibility.

Imagine this year in particular, where other teams could offer major league stars and top prospects for the right to select Strasburg. Imagine the attention this would bring to an otherwise low-drama event. Holding the draft in the off-season could help. Alone (again) among the four major sports, baseball is the only one which holds its draft in the middle of its own season, thus running the risk of having its own games overshadow what should be a publicity-generating event.

If baseball held its annual draft, say, at the winter meetings, it could better spotlight the proceedings, introduce its future stars with the media already in attendance and generate far more fan interest - especially if the move was done in conjunction with the trading of picks. Then again, that may be too much to ask. Change comes to baseball slowly. Perhaps in another decade or two. smcadam@thenational.ae

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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  • Saturday 22 January: v Bangladesh 

UAE squad:

Alishan Sharafu (captain), Shival Bawa, Jash Giyanani, Sailles
Jaishankar, Nilansh Keswani, Aayan Khan, Punya Mehra, Ali Naseer, Ronak Panoly,
Dhruv Parashar, Vinayak Raghavan, Soorya Sathish, Aryansh Sharma, Adithya
Shetty, Kai Smith  

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  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
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Date started: December 2015

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Sector: Technology and home services

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UAE currency: the story behind the money in your pockets
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T20 Cricketer of the Year – Mohammad Rizwan (Pakistan)

ODI Cricketer of the Year – Babar Azam (Pakistan)

Test Cricketer of the Year – Joe Root (England)

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Cricketer of the Year – Smriti Mandhana (India)

ODI Cricketer of the Year – Lizelle Lee (South Africa)

T20 Cricketer of the Year – Tammy Beaumont (England)

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England 35-15 Japan
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UAE currency: the story behind the money in your pockets
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