Reds Phenom Elly De La Cruz Could Owe Huge Money To An Outside Investment Firm
The Cincinnati Reds recently called up one of baseball's top prospects, Elly De La Cruz.
De La Cruz was expected to deliver power, speed and defense to a surprisingly competitive team in a weak NL Central.
So far, the call up has been an extraordinary success for both the Reds and De La Cruz himself.
Through an admittedly small sample, he's been a well-above average hitter, with a 129 wRC+.
He unleashed one of the fastest tracked throws by an infielder in MLB, got from first to third in record time, and launched a massive shot for his first big-league homer.
To this point, the promotion has helped both the Reds and De La Cruz himself. But there's another group that benefitted substantially from the young phenom making it to MLB.
An outside investment firm.
CINCINNATI, OHIO - JUNE 07: Elly De La Cruz #44 of the Cincinnati Reds reacts after hitting a home run in the first inning against the Los Angeles Dodgers at Great American Ball Park on June 07, 2023 in Cincinnati, Ohio. (Photo by Dylan Buell/Getty Images)
Investment Firm Stands To Make Millions From Elly De La Cruz's Success
Big League Advantage (BLA), is an outside private investment firm whose business model revolves around minor leaguers.
Essentially, they "invest" in potential prospects by providing them upfront payments for a portion of future earnings.
Several prominent success stories, most notably Fernando Tatis Jr, have signed deals with BLA. And so has Elly De La Cruz.
While it's unclear how much of his future earnings he signed away, Tatis famously agreed to 8% of all payouts in exchange for pre-MLB money.
Given his massive, 14-year, $340 million contract, he owes BLA roughly $27 million.
And with the outsized impact the Reds' phenom has already had, he could be in line for a similar pre-arbitration extension.
Some have criticized BLA for supposedly taking advantage of young players who need money while in the minors.
But the firm has defended itself by saying it requires outside lawyers to examine each deal, and that the upfront cash isn't a loan. Essentially, if a player never has a long career in MLB, BLA will lose their entire investment.
That said, it's still a risky and fascinating play for younger athletes. De La Cruz secured some financial stability for himself, but now that he appears destined for superstardom, it could backfire spectacularly.
Reds fans are certainly set to enjoy a long, productive career from their young infielder. And so could Big League Advantage.