Olivia
Online
Andrew Solliday
@Screech__Powers
Joined August 2009
456 Following
193 Followers
781 Posts
@Yan_AGomes thank you for the photo opportunity
@j_mac_36 How will you ever recover
@j_mac_36 He sure showed you
@Kyle_Freeman8 Bumble
Some of the best plays of the decade 🔥
Elly De La Cruz is one of MLB's most exciting players.
But he might have to pay MILLIONS in career earnings to an investment firm — and he's not the only one.
Over 500 professional athletes have signed these deals, and Fernando Tatis Jr. owes them $27 million.
Here's how it works:
The company is called Big League Advantage (BLA).
It was founded in 2016 by former minor league baseball player Michael Schwimer, and their business model is simple:
BLA provides athletes with an upfront cash payment in exchange for a percentage of their future earnings.
The firm has 40 employees, and they use proprietary predictive analytics models to find inefficiencies in the market (aka when they believe someone is better than the rankings suggest).
And that's when they commit to an investment.
BLA raised $26 million for its first fund, which was then invested across 77 different players in 2016-17.
A typical deal might look like this:
• Athlete receives $350,000 in cash
• BLA is guaranteed 8% of future earnings
But it's not a loan — because if the player never makes it to the major leagues, they don't owe BLA any money.
And with 80% of their investments never making it to the major leagues, BLA solely focuses on landing the biggest fish (kind of like a venture capital firm),
For example, BLA signed a deal with Fernando Tatis Jr. in 2017. He reportedly agreed to pay back ~8% of his future earnings in exchange for "seven figures" in cash.
He then spent the money on a personal trainer, better food, and a better apartment.
But when he signed a $340 million deal with the San Diego Padres just four years later, BLA's ~8% cut meant that Tatis Jr owed them $27.2 million in earnings.
That one deal alone will pay back the entire fund, and the other 76 players BLA invested in are gravy on top.
And BLA says they have agreements in place with 7 players in last year's MLB all-star game alone.
This success has helped BLA raise nearly $250 million — and they have brought on some big investors, too.
Notable BLA Investors
• Paul DePodesta (Cleveland Browns)
• Bill Miller (Legg Mason)
• Steven Duncker (Goldman Sachs)
• Marvin Bush (Brother of George W. Bush)
But BLA's model doesn't just apply to baseball.
The firm is now expanding into other sports, like NIL deals with college football and basketball players.
For example, BLA signed a deal with Georgia outside linebacker Nolan Smith last year.
Smith received an upfront cash payment (via NIL) in exchange for one social media post per month, two player appearances, and two content shoots.
And based on his rookie deal alone (30th overall pick), Smith will end up paying BLA between $120,000 (1%) and $1.2 million (10%).
This has caused many people to speak up about BLA.
MLB super agent Scott Boras says BLA intentionally targets talented players from Latin America who don't receive large signing bonuses (**BLA's response is that they have signed 100+ American players that collectively have an average signing bonus of $400,000).
And MLB catcher Francisco Mejía even sued the firm in 2018, claiming they took advantage of his financial illiteracy, desperation (he wanted cash to fund medical treatment for his mom in the Dominican), and youth when he signed a deal at 20 years old that exchanged 10% of his future MLB earnings for $360,000 in cash.
Now, Mejía later dropped the case and issued an apology.
And BLA says these deals aren't predatory because they require independent lawyers to review each agreement, and 70-80% of the players they invest in never have to pay back any money.
But that doesn't mean changes can't be made.
One solution, of course, is to increase wages across the minor leagues so these deals aren't necessary, which MLB did last year by doubling wages and improving housing and transportation for players & families.
But with the average minor league player still making less than $30,000 annually, MLB still has a long way to go before income-sharing agreements disappear.
Still, it's important to remember that this problem doesn't just exist in baseball.
People have been investing in golfers (and Formula 1 drivers) for decades, and speculative investing in athletes has its deepest roots in boxing.
But that doesn’t mean a better solution doesn’t exist; we just have to find it.
Ps. I broke down the entire business model behind Big League Advantage on today's podcast. Subscribe below so you don't miss any episodes in the future!
Apple: https://t.co/mxDaF5A3a6
Spotify: https://t.co/gMTrfOPuT3
Elly De La Cruz is one of MLB's most exciting players.
But he might have to pay MILLIONS in career earnings to an investment firm — and he's not the only one.
Over 500 professional athletes have signed these deals, and Fernando Tatis Jr. owes them $27 million.
Here's how it works:
The company is called Big League Advantage (BLA).
It was founded in 2016 by former minor league baseball player Michael Schwimer, and their business model is simple:
BLA provides athletes with an upfront cash payment in exchange for a percentage of their future earnings.
The firm has 40 employees, and they use proprietary predictive analytics models to find inefficiencies in the market (aka when they believe someone is better than the rankings suggest).
And that's when they commit to an investment.
BLA raised $26 million for its first fund, which was then invested across 77 different players in 2016-17.
A typical deal might look like this:
• Athlete receives $350,000 in cash
• BLA is guaranteed 8% of future earnings
But it's not a loan — because if the player never makes it to the major leagues, they don't owe BLA any money.
And with 80% of their investments never making it to the major leagues, BLA solely focuses on landing the biggest fish (kind of like a venture capital firm),
For example, BLA signed a deal with Fernando Tatis Jr. in 2017. He reportedly agreed to pay back ~8% of his future earnings in exchange for "seven figures" in cash.
He then spent the money on a personal trainer, better food, and a better apartment.
But when he signed a $340 million deal with the San Diego Padres just four years later, BLA's ~8% cut meant that Tatis Jr owed them $27.2 million in earnings.
That one deal alone will pay back the entire fund, and the other 76 players BLA invested in are gravy on top.
And BLA says they have agreements in place with 7 players in last year's MLB all-star game alone.
This success has helped BLA raise nearly $250 million — and they have brought on some big investors, too.
Notable BLA Investors
• Paul DePodesta (Cleveland Browns)
• Bill Miller (Legg Mason)
• Steven Duncker (Goldman Sachs)
• Marvin Bush (Brother of George W. Bush)
But BLA's model doesn't just apply to baseball.
The firm is now expanding into other sports, like NIL deals with college football and basketball players.
For example, BLA signed a deal with Georgia outside linebacker Nolan Smith last year.
Smith received an upfront cash payment (via NIL) in exchange for one social media post per month, two player appearances, and two content shoots.
And based on his rookie deal alone (30th overall pick), Smith will end up paying BLA between $120,000 (1%) and $1.2 million (10%).
This has caused many people to speak up about BLA.
MLB super agent Scott Boras says BLA intentionally targets talented players from Latin America who don't receive large signing bonuses (**BLA's response is that they have signed 100+ American players that collectively have an average signing bonus of $400,000).
And MLB catcher Francisco Mejía even sued the firm in 2018, claiming they took advantage of his financial illiteracy, desperation (he wanted cash to fund medical treatment for his mom in the Dominican), and youth when he signed a deal at 20 years old that exchanged 10% of his future MLB earnings for $360,000 in cash.
Now, Mejía later dropped the case and issued an apology.
And BLA says these deals aren't predatory because they require independent lawyers to review each agreement, and 70-80% of the players they invest in never have to pay back any money.
But that doesn't mean changes can't be made.
One solution, of course, is to increase wages across the minor leagues so these deals aren't necessary, which MLB did last year by doubling wages and improving housing and transportation for players & families.
But with the average minor league player still making less than $30,000 annually, MLB still has a long way to go before income-sharing agreements disappear.
Still, it's important to remember that this problem doesn't just exist in baseball.
People have been investing in golfers (and Formula 1 drivers) for decades, and speculative investing in athletes has its deepest roots in boxing.
But that doesn’t mean a better solution doesn’t exist; we just have to find it.
Ps. I broke down the entire business model behind Big League Advantage on today's podcast. Subscribe below so you don't miss any episodes in the future!
Apple: https://t.co/mxDaF5A3a6
Spotify: https://t.co/gMTrfOPuT3
"We’re on a mission..." 👨✈️
Congrats to the Solliday Family on the best Halloween-decorated tailgate. They scored two courtside tickets to a @SIU_Basketball game.
#Salukis x #GoSouthernGo
jake gyllenhaal seeing the mantle of “most hated taylor ex” pass on to john mayer
Akil Baddoo #ExtraSwings
@j_mac_36 That 86 mph plays a lot better after you tell the other team they suck lol
Someone was murdered in Alabama last week over the A&M game.
MURDERED. I’ve seen almost no National coverage of it. Good thing they didn’t throw a water bottle though, that’d be REAL bad
Last Seen Users on Sotwe
Most Popular Users
Elon Musk 
@elonmusk
240.8M followers
Barack Obama
@barackobama
119.2M followers
Donald J. Trump
@realdonaldtrump
111.7M followers
Cristiano Ronaldo
@cristiano
111.2M followers
Narendra Modi
@narendramodi
107M followers
Rihanna
@rihanna
97.8M followers
NASA
@nasa
92.2M followers
Justin Bieber
@justinbieber
91M followers
KATY PERRY
@katyperry
88M followers
Taylor Swift
@taylorswift13
81.8M followers
Lady Gaga
@ladygaga
73.3M followers
Virat Kohli
@imvkohli
70.4M followers
Kim Kardashian
@kimkardashian
69.9M followers
YouTube
@youtube
68.7M followers
Bill Gates
@billgates
64.1M followers
Neymar Jr
@neymarjr
63.2M followers
The Ellen Show
@theellenshow
62.4M followers
CNN
@cnn
61.9M followers
Selena Gomez
@selenagomez
61M followers
X
@x
60.8M followers