Major League Baseball clubs cumulatively sign around 1,000 international amateur players each year, mainly from the Dominican Republic and Venezuela. Most of them face significant economic challenges during their Minor League careers, except for those who receive larger signing bonuses — a very small percentage.
That’s why many players turn to hedge funds or similar companies to secure funding that helps them invest in building their careers and pursuing their dreams. It’s not a loan — if the player doesn’t make it to the majors, they don’t owe anything. But in some cases, the outcome can be problematic, which is why Fernando Tatis Jr. recently sued one of these companies. That controversy also inspired Rob Connolly to launch Finlete.
«T«This is something that can help every minor league baseball player,» said Connolly to El Emergente during an interview last week in Boston. «And it generates more interest in the minor leagues.»
Finlete is an online platform where fans can invest in the careers of Minor League players. It works like GoFundMe, where you can contribute money — but in this case, fans receive a percentage of the players’ future earnings, if they make it to the majors.
«It’s a platform that we built that allows athletes to raise capital from fans in exchange for a percentage of future earnings,» Connolly added. «It’s incredible that fans have accepted this, that they want to participate. The athletes are really excited about our platform.»
Before founding Finlete, Connolly tried to create a platform where fans could meet their favorite baseball players, but that idea didn’t succeed. One day, he was reading an article about the challenges Minor League players face with hedge funds, and he decided to create a platform that could help them.
He flew to the Dominican Republic to visit several baseball academies and to better understand the market and the challenges players face.
«This will really help you instead of having to work valet or struggle during the offseason, or help your mom or dad with their situation back at home,» said Connolly. «This will alleviate stress for you.»
Connolly has already recruited five players, led by Boston Red Sox prospect Jhostynxon García, along with Padres prospect Tirso Ornelas, Guardians closer Emmanuel Clase, Cardinals prospect Leonardo Bernal, and Marlins prospect Echedry Vargas.
How Finlete is changing the game for Minor League players and their fans
Some things have changed in the Minor Leagues in recent years. The MLBPA was approved by the players to represent them, and they now receive free housing and several other benefits through a new collective bargaining agreement — but being a Minor Leaguer is still challenging.
Fans who want to get involved with Finlete receive additional benefits. They get calls or videos from the players they support, and depending on the investment, there are meet-and-greet opportunities.
«One good thing about us is that we are just the platform,» said Connolly to El Emergente. «If the athlete breaches the contract, it’s not just Finlete that suffers – it’s all the fans that invested in his career. That would just be PR suicide. He would be a villain forever. That’s a major advantage we have over the hedge funds.»
Finlete explains everything through their website, where you can understand how much the investor will get in every scenario, depending on the investment and the player’s future earnings.
«We wanted to find a way to make it so that somebody could invest as much as they would spend on a premium baseball card,» said Connolly. «The investment goes to help him while he is in the minors, and if he makes it to the majors, the fan-investor will share in the success.»
But the investors could get a little bit more as they can meet the players. Emmanuel Clase recently went on a fishing trip with some of his fans that helped him.
«It just creates a deeper connection between the player and the fan,» said Connolly. «Just having the opportunity to follow them and be a real part of their journey.»
READ MORE: How Jhostynxon García became a cult hero with a name no one can spell
Photo: MLB.com
