When news broke back in February of 2021 that Fernando Tatis Jr. signed a 14-year, $340 million extension with the San Diego Padres, several parties were undoubtedly thrilled. Whether it was the Padres organization, MVP Sports Group (Tatis’ agency), or the ‘Friar Faithful’ fans out in San Diego, there were several ‘winners’ from the transaction.

However, those associated with Big League Advance were likely pumping fists and popping champagne when they heard the news as well.

Big League Advance (BLA) is a company that offers minor league players upfront payments in exchange for a percentage of future MLB earnings. According to BLAs website, the company has signed more than 700 athletes since its founding in 2016. One of those athletes is Fernando Tatis Jr., who now owes the company upwards of $34 million after agreeing to a deal with them in 2017.

However, Tatis doesn’t appear to be willing to shell out his money to BLA. Last week, the star outfielder filed a legal complaint against the company in the Superior Court of California, County of San Diego. According to a press release from his legal team, Tatis is seeking to hold BLA accountable for “exploitative, predatory business practices, which shamelessly push illegal loans on young, vulnerable athletes — most from economically disadvantaged Latin American countries.”

“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 states in the release. “I want to help protect those young players who don’t yet know how to protect themselves from these predatory lenders and illegal financial schemes — kids’ focus should be on their passion for baseball, not dodging shady business deals.”

This statement conflicts with remarks Tatis made after inking with BLA. According to The Athletic's Ken Rosenthal, Tatis said after signing with the company that his payments would go toward transforming his minor-league training regimen in the U.S. as well as his offseason plan in the Dominican Republic. That included aspirations of hiring a personal trainer and upgrading his diet and living situation as an MLB prospect.

“If I’m a successful player and make big money, I’m not going to care about giving that money away,” Tatis told The Athletic in 2018, when discussing his BLA agreement. "That will be nothing if I make all that big money."

While he has certainly become a successful player and has made big money, it appears like his sentiments about giving his money away have changed.

Tatis is not the first player to sue BLA. Former big leaguer and top catching prospect Francisco Mejía sued BLA in 2018, citing “unconscionable” tactics BLA used to persuade him to give up 10 percent of his future MLB earnings in exchange for three separate payments totaling $360,000. However, Mejia eventually dropped his case.

Moreover, BLA recently sued former big league outfielder Franmil Reyes in Delaware Superior Court, claiming breach of contract. BLA says Reyes owes $404,908.87 in past due payments plus $298,749.13 in interest, as well as a yet-to-be-determined amount from when he played in Japan. It's worth noting that like Tatis, Mejia and Reyes both hail from Latin American nations.

According to his legal team, Tatis received $2 million from BLA in exchange for 10% of his MLB pay. That means that in addition to the $34 million from Tatis' 2021 contract with the Padres, he's responsible for paying BLA a 10% cut of any subsequent MLB deal he inks.

While BLA has yet to comment on Tatis’ filing, they will almost assuredly answer the complaint and offer several defenses in hopes of convincing a court to dismiss the case. BLA could argue that the contract Tatis signed is not a loan, but instead a deal wherein Tatis received capital that he could use to supplement his minor league earnings. BLA will probably also point out the risk it takes in its deals. If the player (like most minor leaguers) never becomes a regular MLB player, BLA might never be repaid. Moreover, because BLA has also signed many American-born players, they could counter Tatis' argument that they are "exploiting" Latin American players specifically.

While it will be fascinating to see how this case develops, Sportico references that Tatis’ suit may hit an arbitration snag. According to the article, it’s possible that a judge will dismiss the case to arbitration.

Albeit in passing, the complaint noticeably references arbitration, which could become a key issue. An attorney familiar with player investment contracts told Sportico that BLA contracts ordinarily contain arbitration clauses; the attorney requested anonymity because the discussions are private.

The complaint claims Tatis has suffered a variety of financial injuries including “arbitration costs as a result of Defendants’ efforts to enforce” the contract. The complaint also argues that its demand for injunctive relief “is not arbitrable,” meaning it would be outside the scope of arbitration.

To the extent Tatis is engaged in arbitration with BLA over interpretation of the contract, BLA could argue that Tatis’ arguments must first be determined by arbitration before a court can hear his claims. The loser of an arbitration can petition a federal court to vacate an arbitration award, but that strategy might now be more difficult for Tatis. He is contending the BLA contract is entirely void—and thus non-interpretable–which could make it more difficult for him to argue in arbitration that the contract be interpreted a certain way.

In conclusion, while one could attempt to make the argument that BLA’s practices are somewhat exploitive, a deal is a deal, and it appears like proper consideration was exchanged between the two parties. It’s possible Tatis isn’t expecting to free himself of all his financial obligations to BLA and is just attempting to see if he can knock down the $34+ million fee down a bit. Nonetheless, it will be interesting to follow this case and the impact it could have on players signing with BLA moving forward.

 Brendan Bell is a Rising 3L at SMU Dedman School of Law. He can be followed on Twitter (X) @_bbell5