The $2 million investment helped put him in the position he’s in today. Without those resources, opportunities, and guidance at 18 years old, it’s fair to ask whether he would have developed into the player he is now.
For him, the decision appears to have been worth it, and many players in a similar situation would likely make the same choice. The real issue arises when young athletes receive money without the proper support, mentorship, and long-term guidance. That’s when players can be taken advantage of and end up making decisions that aren’t in their best interests.
At the same time, investors only succeed when the athlete succeeds, so there is alignment in many cases. Ultimately, every deal is a cost-benefit analysis for all parties involved. There are good outcomes and bad outcomes in any investment structure. The difference often comes down to the people involved, the transparency of the agreement, and whether the athlete can trust the individuals in their corner.
Fernando Tatis Jr. has lost his lawsuit against Big League Advance.
Tatis was paid $2 million as a minor leaguer in exchange for 10% of his future earnings.
This was not a loan.
If Tatis didn't make it to the big leagues, he didn't have to repay the $2 million.
But Tatis did make it to the big leagues and later signed a 14-year, $340 million contract.
That meant Tatis owed Big League Advance $34 million.
Tatis had publicly praised Big League Advance, saying the $2 million allowed him to hire a personal trainer, upgrade his apartment, and eat better food.
But after realizing he owed $34 million in exchange for $2 million, Tatis sued the company, alleging that they used predatory tactics to lure him into an investment deal that was really an illegal loan.
The judge disagreed.
The agreement was upheld this week and Tatis was even ordered to pay Big League Advance’s legal fees.
This is a big deal because Big League Advance has signed deals with 700 athletes, including Elly De La Cruz (MLB) and Nolan Smith (NFL), across MLB, NFL, and college sports (think: NIL).
And now that the courts have ordered Fernando Tatis Jr. to follow through on the agreement, other potential legal challenges will likely go the same way.