The most recent significant payday was reported on Wednesday, marking the longest contract in baseball history and the third largest in total financial commitment. This deal secures a long-term presence for a potential face of MLB in San Diego, representing a major shift for both the Padres and the league. However, Fernando Tatis Jr. may not benefit from this contract as much as one might expect.
The reason lies in a deal he made as a 19-year-old, prior to his MLB debut, which will impact his earnings significantly. As highlighted by Ken Rosenthal from The Athletic, a portion of Tatis’ earnings will go to Big League Advance, a company known for its controversial and, some argue, predatory business model.
Big League Advance operates as an investment company that focuses on players rather than traditional businesses or properties. They reach out to minor leaguers offering a one-time sum of cash in exchange for a percentage of their future earnings in MLB.
This arrangement can be beneficial for a minor leaguer if their career does not reach the lucrative levels of MLB, making it a wise choice. However, for those who excel, like Tatis, who recently signed a historic contract, this can lead to significant payouts for Big League Advance.
For Tatis specifically, reports indicate that he entered into an agreement with Big League Advance, potentially committing a substantial part of his earnings to the company. For instance, Big League Advance might propose a deal where a player receives $50,000 for every 1% of their future earnings. Thus, if Tatis opted for the maximum payout, he could owe Big League Advance around $34 million over the length of his contract, significantly diminishing his financial gains despite his staggering contract. Not all players, however, face the same situation.
