San Diego Padres star Fernando Tatis Jr. lost a major legal fight after a San Diego judge refused to overturn an arbitration ruling connected to a controversial investment deal he signed in 2017 with Big League Advance Fund.
Inside the Loan
According to reports, San Diego Superior Court Judge Judy S. Bae upheld the earlier arbitration decision that favored BLA, rejecting arguments from Tatis that the agreement was illegal or unenforceable.
The original ruling came in 2025 from retired New York judge and arbitrator Anthony J. Carpinello, who determined that BLA had not technically “loaned” money to Tatis under the terms of the agreement.
The case centers on a deal Tatis signed before becoming an MLB superstar, in which BLA provided him upfront money in exchange for a percentage of his future earnings.
In 2017, Tatis, then an 18-year-old minor league prospect, accepted a $2 million advance in exchange for 10% of his future baseball earnings, the New York Post reported. Tatis is now 27. It has not been revealed why Tatis might have been in need of money.
Tatis sued BLA, alleging he was “fraudulently induced” into the agreement during a 2017 dinner meeting that focused on immediate money for him and his family instead of the long-term consequences.
The ruling stressed that Tatis was 18 years old when he signed the agreement with Big League Advance Fund, making him a legal adult capable of entering into an enforceable contract.
The arbitrator also rejected the argument that the deal functioned as a traditional loan, noting that BLA assumed significant risk. If Tatis had never reached the major leagues or earned substantial income as a professional player, BLA would have lost its investment and would not have been able to force him to repay the money. The arrangement was an investment in Tatis’ future earnings rather than a conventional loan.
Tatis had argued the deal violated the California Financing Law, portraying the arrangement as a loan or income-share agreement and alleging BLA “preys on young, unsophisticated athletes, offering lump-sum advances in exchange for significant portions of their future earnings.”
The financial stakes exploded after Tatis signed a 14-year, $340 million contract with the San Diego Padres in 2021.
BLA is owed approximately $34 million over the life of the contract.
“The wide disparity between the $2 million Tatis received as a minor leaguer and the tens of millions of dollars he’ll need to pay BLA over his career has struck some as unfair, perhaps even oppressive,” Sportico reported. “The harder part, however, is proving this arrangement breaks any law. Tatis has thus far come up short on that front.”
The ruling leaves Tatis responsible for millions in payments, including an immediate $3.2 million arbitration award and over $240,000 in attorney fees, according to the New York Post.
The total amount currently owed sits at approximately $3.74 million, including earnings shares, interest, attorneys’ fees and costs.
Tatis is the son of former MLB player Fernando Tatis Sr., who earned nearly $20 million during his career. Tatis Jr. plans to appeal the decision immediately, according to The San Diego Union-Tribune.