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Many people are talking about Fernando @Tatis_jr’s agency’s big payday from his new $340 million, 14-year contract.
Not enough people are talking about former MLB pitcher @mschwimer’s payday from the same contract.
A thread
Not enough people are talking about former MLB pitcher @mschwimer’s payday from the same contract.
A thread
1) Years after his playing career, Michael Schwimer is President & CEO of @BigLeagueAdv, a company that gives prospects upfront cash in exchange for a percentage of all their future earnings.
If the player never makes it to the majors, the company loses its initial stake.
If the player never makes it to the majors, the company loses its initial stake.
2) Overall, the company has invested $156M total into 344 players since its inception.
In its first round of investments, they signed a deal with 77 players, distributing a combined $26 million to them.
Fernando Tatis Jr., then just in Single-A, was one of them.
In its first round of investments, they signed a deal with 77 players, distributing a combined $26 million to them.
Fernando Tatis Jr., then just in Single-A, was one of them.
3) The @BigLeagueAdv team uses data to predict which players are most likely to advance to the majors.
Schwimer says that their deal with Tatis Jr. is a testament to the model they use—which at the time—showed he was the second-best minor league player of the past 15 years.
Schwimer says that their deal with Tatis Jr. is a testament to the model they use—which at the time—showed he was the second-best minor league player of the past 15 years.
4) “When we signed him he wasn’t considered a Top 40 prospect,” Schwimer said. “At the time, talking to investors, the amount of money we were offering him was a sizeable portion of our bankroll. But we trusted the model.”
5) It is unknown exactly how much the fund’s investment in Tatis Jr. was — though it will bring in somewhere between 1% and 10% of his earnings.
If 5% (the middle of that range), the payday for @BigLeagueAdv from Tatis Jr.’s new contract would be a cool $17 million.
If 5% (the middle of that range), the payday for @BigLeagueAdv from Tatis Jr.’s new contract would be a cool $17 million.
6) While that may not be as large a payout as Tatis Jr.’s agency is seeing — it’s not too bad for a former MLB relief pitcher trying his hand at a second career.
(source: @Sportico)
(source: @Sportico)
