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Indians prospect Francisco Mejia sues company which bought stake in future earnings


Jerry Crasnick of ESPN reported on Friday that the Indians top prospect, Francisco Mejia, has sued a company called Big League Advance, looking to invalidate an agreement he signed with them which, in exchange for a modest cash payment a few years ago, purports to entitle the company to 10% of his future earnings.

Big League Advance is run by former Philadelphia Phillies pitcher Michael Schwimer and counts former MLB general manager and current Cleveland Browns executive Paul DePodesta as a board member and partner in the business. The model: to pay minor leaguers a certain sum of money — in Mejia’s case $360,000 — and in exchange for that, the company will receive 10% of all future earnings. Mejia claims in the suit that he could earn $100 million in his career. That’s not implausible given how good he’s supposed to be.

Mejia claims that Big League Advance’s tactics were “unconscionable,” in that (a) he was under duress at the time he signed the agreement due to his mother being ill and in need of money for medical treatment;  and (b) that he had no legal counsel at the time he signed the agreement and that he does not speak English. Schwimer and Big League Advance counter that Mejia’s agents were fully aware of the agreement and that Mejia indicated at the time he signed that he fully understood what he was doing. They add that Mejia came back to them twice for additional installments in the same year the initial agreement was signed. It’s also worth noting that the contracts are in Spanish, which further undercuts Mejia’s position.

Making the case that this contract should be voided on the grounds of unconscionability is a tough, tough case, especially in a business-friendly Delaware courtroom, where this case will unfold due to it being the corporate home of Big League Advance. To win that case the contract has to be more than merely unfair. There has to be something more, something almost underhanded to it. Fangraph’s Sheryl Ring is an attorney and she has a good overview of that today.

An additional undercurrent to this, which is not 100% clear from Crasnick’s story, is whether or not Mejia is claiming that this is a usurious, and thus illegal loan. On the math would could argue that paying, potentially, $10 million on a $360,000 advance represents an illegally high interest rate. If Mejia is claiming that Big League Advance will likely argue — I suspect successfully, if it comes to it — that this wasn’t truly a loan given that Mejia would be under no obligation to pay a dime back if he never made the big leagues. Of course, one could make the counter argument that, even if that was technically the case, it was all but certain in 2016 that Mejia would have, in fact, made the bigs, thereby making it a loan, practically speaking. As a matter of fact, Mejia was called up at the end of 2017 and will likely be back up in Cleveland for good some time this season. He’s already on the hook to Big League Advance for the earnings he’s made in that cup of coffee.

It’s worth noting at this point that Big League Advance is not alone in this business. There’s a company called Fantex which does this too, with Andrew HeaneyMaikel Franco, Collin McHugh, Jonathan Schoop, Tyler Duffey and Yangervis Solarte, among others, all signing up in recent years. A big difference between the Fantex deals we know about and what Big League Advance is doing, however, has to do with the money involved. Heaney got $3.34 million for that 10% cut a few years back. Franco got $4.35 million, McHugh got $3.96 million, Schoop got $4.91 million Duffey got $2.3 million and Solarete got $3.15 million. All of these will be much more balanced deals than that which Mejia received. Ones that could be viewed more akin to insurance policies if you look at it just so. It’s also likely that, given the money involved, those players were not approached while under personal duress and likely had legal counsel to represent their interests. The circumstances definitely matter.

The legalities of Mejia’s deal will be sorted out by the courts. We’re not the courts, however, so we’re allowed to have an opinion about it irrespective of the law. That opinion: it stinks. It stinks to high heavens. It might stink less if the money was decent and it reeks pretty damn badly given that it stands to be a pennies-for-pounds deal, but approaching young, relatively uneducated and financially strapped players looking to arbitrage their future earnings is shady either way.

Bryce Harper played some third base in an intrasquad game

Bryce Harper third base
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Phillies star outfielder Bryce Harper played some third base during Monday’s intrasquad game at Citizens Bank Park, Jim Salisbury of NBC Sports Philadelphia reports. Harper had been pestering manager Joe Girardi for the opportunity and the skipper finally gave in.

Girardi told Harper, “No diving. And make sure your arm is loose.” Harper had the opportunity to field one ball, a grounder to his left and he made the play perfectly.

Why put Harper at third base? Girardi said, “I think it’s important the guys have fun. I saw him a week ago taking ground balls there and I was impressed. His hands worked well out front and he threw the ball across the field well. I told him, ‘You look good there.'”

Despite the solid showing, don’t expect Harper to show up at third base in a meaningful game anytime soon. That being said, the Phillies’ second and third base situations are still not cemented. Jean Segura will likely open the season at the hot corner with Scott Kingery at second, but things could change between now and Opening Day in 10 days.

Harper, 27, is coming off a solid first season with the Phillies. He hit .260/.372/.510 with 36 doubles, 35 home runs, 114 RBI, 98 runs scored, and 15 stolen bases across 682 plate appearances. Per FanGraphs, Harper’s 4.6 Wins Above Replacement ranked 16th in the National League. For some people, those numbers weren’t nearly good enough, so the expectations remain high as Harper enters year two of his 13-year, $330 million contract.