Dominican baseball prospect system under scrutiny for lender involvement

An investigation by ProPublica has highlighted a complex financial network within the Dominican Republic's baseball prospect signing system. The report examines how lenders and trainers profit from the bonuses of young players before they sign professional contracts with Major League Baseball (MLB) organizations.

In the Dominican system, trainers often face high daily operating costs and may wait years to receive portions of a player's signing bonus. To manage these costs, some trainers utilize lenders who provide capital in exchange for a percentage of future bonuses, typically ranging from 2% to 5%. While some trainers describe these lenders as a “necessary evil” or a “lifesaver” for small academies, others note the significant financial advantage lenders gain from the process.

Former MLB star David Ortiz was mentioned in the investigation due to a past business relationship with Santo Caraballo, a lender linked to the industry. Ortiz clarified in an interview that his company provided loans exclusively to trainers, never to players, and stated he ended the partnership approximately two years ago after discovering his partner was conducting unauthorized business using his name.