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Big League Advance Sues Franmil Reyes Over Unpaid Earnings Stake
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- Big League Advance Sues Franmil Reyes Over Unpaid Earnings Stake
Big League Advance Fund (BLA) on Monday sued former MLB outfielder Franmil Reyes for allegedly not paying 10% of his earnings as required by a player investment contract.
BLA claims Reyes owes $404,908.87 in past due payments plus $298,749.13 in interest on those payments. He also allegedly owes a yet-to-be-determined dollar figure for when Reyes played in Japan's Nippon League. BLA says Reyes hasn't made a payment since Sept. 23, 2022, and that it has sent him multiple demand letters in hopes of resolving the dispute privately before having to file a lawsuit.
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Through attorneys Lisa R. Hatfield and Max B. Walton of Connolly Gallagher, BLA's complaint was filed in Delaware Superior Court. It contains only one claim, breach of contract, and asserts a straightforward argument. When Reyes was a 21-year-old outfielder for the San Diego Padres Single-A affiliate Lake Elsinore Storm in 2016, he and BLA signed an investment agreement in which BLA agreed to provide $301,840 to Reyes. In exchange, BLA obtained a 10% stake in Reyes' professional baseball earnings provided he earned at least $100,000 in a year.
The contract explicitly included earnings in MLB, the minor leagues and Nippon League, and covered salary, bonuses and other performance-based payments.
From 2018 to 2023, Reyes played for four MLB teams: the Padres, Cleveland Guardians , Chicago Cubs and Kansas City Royals . Reyes had several impressive seasons, including 2018 and 2021 when he blasted 37 and 30 home runs, respectively. He struggled in 2022 and 2023 before relocating to Japan. Now 29, Reyes has played for the Hokkaido Nippon-Ham Fighters for the last couple of years. According to court documents, Reyes also resides in Japan.
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BLA's complaint mentions arguments in favor of player investment contracts, which are sometimes called third-party agreements. "Players," the complaint asserts, "receive capital—not loans—they can use to, among other things, pay for food, housing, and training while working to secure a professional baseball contract." These funds can help players gain "the resources they need to help make their dream of playing professional league baseball a reality." BLA also takes on some risk: if the player fails to advance and never hits it big, BLA will have made a bad investment.
As Sportico has detailed, player investment contracts have also attracted criticisms . The MLS Players' Association, for instance, has described them as "exploitative." Relatively young athletes, some of whom lack substantial education, might later regret contracting away what could become many millions of dollars.
Attorneys for Reyes will answer the complaint, attempt to rebut BLA's allegations and raise defenses.
An attorney familiar with player investment contracts told Sportico that Reyes signing in 2016 is a significant fact. More recent contracts normally contain arbitration clauses that keep disputes such as this one out of public view.
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