Fernando Tatis Jr. Took $2M as a Teen — Now It Could Cost Him $34M

When Fernando Tatis Jr. was just 18 years old, he made a financial decision that seemed like a lifeline at the time. Now, nearly a decade later, that same deal could cost him tens of millions of dollars.

Back in 2017, while still a minor league prospect in the San Diego Padres system, Tatis agreed to a contract with investment firm Big League Advance. The company offered him $2 million upfront in exchange for 10% of his future professional baseball earnings over the next 25 years.

At the time, the offer provided immediate financial security in a system where minor league players often earn very little. But with Tatis now one of baseball’s biggest stars, the long-term cost of that decision is becoming clear.

How the Investment Model Works

Big League Advance operates on a model that differs from traditional loans. Instead of requiring repayment regardless of outcome, the company invests in young players and only collects if they reach the major leagues.

If a player never makes it, they owe nothing. But if they succeed, the company takes a percentage of their earnings. In Tatis’s case, that percentage is 10% over a 25-year period.

This approach allows players to access guaranteed money early in their careers, but it also carries significant risk if they go on to earn large contracts. For Tatis, that scenario has become reality.

Fernando Tatis Jr. during a game for the San Diego Padres, now at the center of a high-profile financial dispute (Image via MLB)

A $340 Million Contract Changes Everything

In 2021, Tatis signed a 14-year, $340 million contract with the Padres, one of the largest deals in Major League Baseball history. That contract alone dramatically increased the value of Big League Advance’s stake.

If the agreement is fully enforced, the company’s share of Tatis’s earnings could reach approximately $34 million. And that figure could grow even further if he signs additional contracts later in his career.

What once looked like a reasonable trade-off for financial stability has now turned into a major financial obligation tied to his long-term success.

Legal Battle Doesn’t Go Tatis’s Way

Tatis has since challenged the agreement in court, arguing that he was not fully informed about the long-term implications of the deal when he signed it. He accused Big League Advance of misleading him into accepting terms that would later prove costly.

However, a recent ruling went against him. A California court denied his attempt to overturn an arbitration decision that favored the company. As part of that ruling, Tatis has already been ordered to pay approximately $3.2 million, along with additional legal costs and interest.

Despite the setback, his legal team is expected to continue the fight through appeals.

A Bigger Debate Around Young Athletes

The case has reignited a broader debate about financial agreements involving young athletes. Critics argue that companies like Big League Advance take advantage of players who are early in their careers, often with limited financial knowledge and uncertain futures.

Supporters of the model counter that it provides opportunities that would otherwise not exist. For many minor league players, the chance to receive guaranteed money can be life-changing, especially given the low salaries and high risk of never reaching the major leagues.

In that sense, the model depends on outcomes. When a player does not make it, the company absorbs the loss. But when a player becomes a superstar, the returns can be substantial.