Ep. 122 - Should Baseball Players Sell a Percentage of Their Future Earnings?

Welcome to "Ahead in the Count," presented by BIP Wealth. Our Baseball Division combines their collegiate and professional baseball playing experience with financial acumen to provide expertise in life on and off the field. We aim to give ballplayers and their families a better understanding about their unique lifestyle, the opportunities that come from playing this game, and insight into the complex financial world. This is "Ahead in the Count," hosted by Nolan Alexander, from BIP Wealth.

What if someone offered you millions of dollars today in exchange for a cut of everything you earn for the rest of your career? For a growing number of professional baseball players, this isn't a hypothetical. It's a real pitch on the table.

In this episode of Ahead in the Count, host Nolan Alexander sits down with BIP Wealth's baseball advisors Kyle Schmidt and John Hester — both former professional players — to break down one of the most talked-about (and misunderstood) financial trends in professional baseball: athlete revenue sharing deals, also known as future earnings investment contracts.

From the minor leagues to the majors, companies are approaching ballplayers at every career stage with upfront cash in exchange for a percentage of their future professional earnings. It sounds simple, but the details — and the decision — are anything but.

What You'll Learn in This Episode

How athlete income-sharing deals work

Third-party investment firms evaluate a player's career trajectory and offer a lump-sum payment upfront. In return, the player agrees to pay back a percentage of their future professional earnings — sometimes for the life of their contract.

Who these deals are right for (and who they're not)

There's no one-size-fits-all answer. Kyle and John break down how factors like career stage, signing bonus, position (pitcher vs. position player), risk tolerance, family situation, and financial discipline all influence whether a deal makes sense.

The Fernando Tatis, Jr. example

At 18 years old, Tatis reportedly signed over 10% of his future earnings for $2 million. With his massive subsequent contract, that decision became one of the most high-profile, and legally contested, cases in athlete income-sharing history. Kyle and John discuss what this lawsuit signals for the industry.

What happens to the upfront money

The advisors walk through the financial mechanics: tax implications in year one, investment strategies, long-term growth projections, and how to build that money into a lasting nest egg, because taking the deal wisely is a completely different outcome than taking it without a plan.

The devil is in the details

Not all deals are structured the same way. Some firms cap the total amount owed back; others don't. Some offer training resources, analytics support, and coaching tools in addition to the investment. Knowing what each firm brings to the table is critical before signing.

The psychological side of the decision

Does accepting outside investment create a sense of obligation or ownership? Does it relieve pressure — or add it? Kyle and John discuss how a player's motivational style (driven by hunger vs. driven by security) should shape the decision.

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