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

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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.

Astros, Red Sox look ahead in wake of sign-stealing scandal

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Players from two teams at the center of baseball’s sign-stealing scandal faced their fans on Saturday for the first time since the Houston Astros and Boston Red Sox ousted their managers amid the fallout from the investigation into Houston’s elaborate scheme.

The Astros and Red Sox held their annual fan fests on Saturday, and instead of discussing preparations for the season, players from both teams were left to answer questions about the cheating that resulted in both teams’ managers being fired.

“It’s a tough situation and as a team we have to stay together and go through this as a team like we’ve been doing, always,” Houston star second baseman José Altuve said. “We have to talk about it at spring training and try not to let things in the past distract us for for next year.”

Houston manager AJ Hinch and general manager Jeff Luhnow were suspended for a year by MLB Commissioner Rob Manfred on Monday after he found illicit use of electronics to steal signs during the Astros’ run to the 2017 World Series championship and again in the 2018 season. Team owner Jim Crane then fired both Hinch and Luhnow. Manager Alex Cora left the Red Sox on Tuesday after Manfred’s report identified him as the ringleader of the sign-stealing scheme when he was the bench coach for the Astros in 2017.

Many Red Sox players talked Saturday about how much they liked and valued Cora and hated to see him go.

“I’m heartbroken about it,” Boston designated hitter J.D. Martinez said. “I understood his side of it. He definitely didn’t want to be a distraction. He was one of my favorite, if not my favorite, managers I’ve had.”

The Astros were fined $5 million, which is the maximum allowed under the Major League Constitution, and must forfeit their next two first- and second-round amateur draft picks.

The investigation found that the Astros used the video feed from a center field camera to see and decode the opposing catcher’s signs. Players banged on a trash can to signal to batters what was coming, believing it would improve the batter’s chances of getting a hit.

MLB is also looking into whether Cora installed a similar system in Boston after arriving the following year, when the Red Sox won the World Series. No conclusions have been reached and there is no timetable; the Astros investigation took two months.

Martinez hopes MLB wraps up the investigation into the Red Sox soon so they can put this behind them.

“I’m excited for the investigation to get over with, so they can see there’s nothing going on here,” he said.

While the Astros were meeting with fans in Houston, Toronto Blue Jays outfielder Randal Grichuk called for MLB take away their World Series championship, now that it’s been proven that they cheated.

“I mean, I would like to see that obviously. I bet the Dodgers would like to see that,” Grichuk said. “I’ve got a few friends on the Dodgers that are very disappointed that possibly two years in a row they lost due to a team going against the rules.”

Many Boston players are trying not to focus on the investigation or what could be coming for the team, but instead simply trying to prepare like it’s any other season.

“MLB’s going to do what they have to do to look into it,” pitcher Nathan Eovaldi said. “I’m just trying to focus on baseball. I feel like it’s going to pass, and everything’s going to be fine.”

While Altuve didn’t have a problem answering numerous questions about the scandal, Houston third baseman Alex Bregman refused repeated attempts by reporters to get him to address what happened and kept repeating variations of the same phrase.

“The commissioner made his report, made his decision and the Astros made their decision and I have no further comment on it,” Bregman said in some variation again and again.

After being pressed on if he plans to discuss the sign-stealing in the future, Bregman finally gave an answer that didn’t seem as rehearsed.

“I think in the 2020 year our actions will speak louder than our words,” he said.

Altuve and Bregman were the only two stars at Saturday’s fan fest in Houston who were part of the 2017 championship team. Many of the other big names who helped the Astros win their first title, including World Series MVP George Springer, ace Justin Verlander and shortstop Carlos Correa, did not attend the daylong event where fans can interact with players.

Altuve was the AL MVP in 2017, and since the sign-stealing scandal broke, some have questioned whether he deserved the award. In recent days he’s also been accused of wearing an electronic device under his jersey to tip pitches, which he vehemently denies. He was asked how it feels for people to call him a cheater.

“You don’t want anybody to call you that,” he said. “But … I have two options. One is cry and one is go down and play the game and (perform) and help my team. And you know what one I am going to do.”

MLB’s investigation of Houston began after former Astros pitcher Mike Fiers, who played for Oakland last season, told The Athletic about the team’s scheme to steal signs. Martinez said he has spoken to Fiers and gets why he came forward.

“I understand his side of it, being in that division, going against those guys. It’s an uncomfortable position for him, but I understand why he did what he did,” Martinez told reporters in Springfield, Massachusetts. “He obviously felt like he needed to and I understand it.”

In Houston, as the Astros try to put the scandal behind them and focus on the future, Altuve, who has often been described as the heart and soul of the team, is confident it won’t derail the Astros from another successful season.

“Everything will be fine,” he said. “We’re going to be in the World Series again. People don’t believe it. But we will.”