Fernando Tatis Jr.’s historic extension is not just celebrated in Juan Dolio, where his family lives, the California tax authorities who will have more cash, or his agent Dan Lozano. Michael Schwimer never stops celebrating in Las Vegas.
A significant amount of the $ 340 million that Tatis will charge in the next 14 years will go to the accounts of Big Advance (BLA), the company that Schwimer founded to leave money to prospects in exchange for percentages of wages they will charge in the future. major leagues.
If Tatis, 22, pledged 5% for a US $ 400,000 advance three years ago then he will have to pay US $ 17 million for the contract he just signed and which binds him until 2034. If it was US $ 800,000 for 10% will then be forced to turn over $ 34 million.
This investment will have earned 4.150%, a percentage that is not guaranteed by buying shares of Apple or investing in Bitcoin.
Tatis, born in a golden cradle in a family where his father of the same name earned $ 17.8 million between 1997 and 2010 in MLB, received a $ 700,000 bonus in 2015 from the White Sox when he was 16 years old.
But at the end of his AA season in 2017, already changed to Parents, the torpedo boat understood that he needed extra resources to hire a personal trainer, eat better and purchase a more comfortable apartment within walking distance of his parents in Juan Dolio and BLA, gladly being the number eight prospect of the MLB Pipeline, awarded the highest figure they had given so far, according to a report by The Athletic.
Until this 2018, US $ 800,000 for 10% in the future was the maximum figure provided by the company, but the range could start at US $ 100,000 for 1% according to a number that threw the algorithm of each player in minor leagues.
Tatis didn’t tell Ken Rosenthal of The Athletic how much he took this 2018 when the story came out, nor Schwimer of Eben Novy-Williams of Yahoo! Sports, when it approached him on Thursday, but has reiterated that Tatis received the largest offer in a clientele that already has a contract with 344 players to whom it has lent $ 156 million to date.
Francisco Mejia, a Banilejo receiver who now belongs to the Rays, pledged 10% of his salary in exchange for $ 360,000, after learning the magnitude of what he had done he sued BLA, based in Delaware, and ended up retiring the complaint and even apologize in public.
The players’ union (MLBPA) is a critic of this system which it considers unfair, but as it does not represent minor league players it feels like tied hands.
How much will Tatis earn?
Initially, Tatis will pay 37% of its federal tax revenue each year. He could then pay up to a maximum of 13.3% in the state of California, a figure he could reduce if he proves he resides at least 183 days a year elsewhere, tricky if his team arrives in the playoffs as he shoots the 172-day calendar that the regular season brings.
Once these cuts are applied come the discounts for the charge while playing in other states and cities that charge taxes. To this is added the payment to the agency, MVP Sports Group, which can reach up to 5%.
To apply only the discounts already defined and have given 10% to BLA then Bebo would have 35% of the money for which it has been agreed, ie $ 114 million until 2034.