The suit, filed Monday, seeks to void a 2017 contract Tatis signed at age 18, under which he agreed to give BLA 10% of his future baseball earnings in exchange for a $2 million advance. Tatis alleges that the deal, presented while he was still a minor league prospect living in the Dominican Republic, constitutes an illegal and usurious loan under California consumer protection law. His legal team contends BLA is operating as an unlicensed lender in California, and claims the income-sharing agreement he signed could ultimately cost him tens of millions of dollars over his career.
"I'm fighting this battle not just for myself but for everyone still chasing their dream and hoping to provide a better life for their family," Tatis said in a public statement. "I want to help protect those young players who don't yet know how to protect themselves from these predatory lenders and illegal financial scheme - kids' focus should be on their passion for baseball, not dodging shady business deals."
Tatis, now 26, signed a 14-year, $340 million contract with the Padres in 2021. If enforced, the BLA agreement would entitle the company to roughly $27 million - an estimated 1,700% return on the original $2 million advance. The lawsuit argues that the agreement was fraudulently presented as an "investment" rather than a loan, and that key legal disclosures about interest rates, licensing, and consumer rights were omitted.
The lawsuit paints a picture of a rushed and opaque negotiation process, including a casual dinner in the Dominican Republic where BLA representatives - including former MLB pitcher and company CEO Michael Schwimer - pitched the deal to a teenage Tatis. According to the filing, the informal setting masked the serious legal and financial implications of the contract.
"I'm fighting this battle not just for myself but for everyone still chasing their dream and hoping to provide a better life for their family," Tatis said in a public statement. "I want to help protect those young players who don't yet know how to protect themselves from these predatory lenders and illegal financial scheme - kids' focus should be on their passion for baseball, not dodging shady business deals."
Tatis, now 26, signed a 14-year, $340 million contract with the Padres in 2021. If enforced, the BLA agreement would entitle the company to roughly $27 million - an estimated 1,700% return on the original $2 million advance. The lawsuit argues that the agreement was fraudulently presented as an "investment" rather than a loan, and that key legal disclosures about interest rates, licensing, and consumer rights were omitted.
The lawsuit paints a picture of a rushed and opaque negotiation process, including a casual dinner in the Dominican Republic where BLA representatives - including former MLB pitcher and company CEO Michael Schwimer - pitched the deal to a teenage Tatis. According to the filing, the informal setting masked the serious legal and financial implications of the contract.
Though Tatis portrays himself as a financially unsophisticated teenager at the time, it’s worth noting that he is the son of former Major Leaguer Fernando Tatis Sr., who enjoyed an 11-year MLB career. While this background arguably provided greater access to baseball experience and industry knowledge than many of his peers, the lawsuit centers on whether BLA misrepresented the nature and legality of the contract, regardless of family ties.
Tatis' legal team includes attorneys from Winnick Law PC and Mitts Law LLC, as well as former California State Senator Robert Hertzberg, who stated, "California legislators have put in place serious, straightforward protections against predatory financial activity, but BLA has still disregarded our laws to pursue a business model built on prohibited, deceptive, and abusive practices."
Founded in 2016, Big League Advance has signed over 700 athletes to similar deals, often advancing lump sums to minor leaguers in exchange for a percentage of future earnings. The company maintains that these deals are investments, not loans, and that players owe nothing if they don't reach the major leagues.
However, Tatis is not the first player to challenge BLA. In 2018, catcher Francisco Mejía filed a similar lawsuit after accepting $360,000 in exchange for 10% of his MLB income. He later dropped the case.
Although Tatis had previously defended his decision to sign the agreement - telling The Athletic in 2018 that it helped him afford better training, housing, and food - his position has clearly shifted as he claims the contract was exploitative from the start.
This developing legal battle could have far-reaching implications for how athletes are protected from financial exploitation - especially in the early, vulnerable stages of their careers.
Tatis' legal team includes attorneys from Winnick Law PC and Mitts Law LLC, as well as former California State Senator Robert Hertzberg, who stated, "California legislators have put in place serious, straightforward protections against predatory financial activity, but BLA has still disregarded our laws to pursue a business model built on prohibited, deceptive, and abusive practices."
Founded in 2016, Big League Advance has signed over 700 athletes to similar deals, often advancing lump sums to minor leaguers in exchange for a percentage of future earnings. The company maintains that these deals are investments, not loans, and that players owe nothing if they don't reach the major leagues.
However, Tatis is not the first player to challenge BLA. In 2018, catcher Francisco Mejía filed a similar lawsuit after accepting $360,000 in exchange for 10% of his MLB income. He later dropped the case.
Although Tatis had previously defended his decision to sign the agreement - telling The Athletic in 2018 that it helped him afford better training, housing, and food - his position has clearly shifted as he claims the contract was exploitative from the start.
This developing legal battle could have far-reaching implications for how athletes are protected from financial exploitation - especially in the early, vulnerable stages of their careers.
