As an established star in the most lucrative league for elite professional athletes in the world, Emmanuel Clase’s future earnings would appear to be a pretty solid investment.
Finlete is banking on it.
More news: Watch Ridiculous Blown Call Benefit New Mets Outfielder
The San Diego-based crowdfunding startup added Clase to its talent roster in September. Finlete offers fans the ability to invest in a percentage of Clase’s future earnings in exchange for an upfront payment of at least $396, most of which goes directly to the player.
“When we met with (Clase) at the All-Star Game, he thought it was really interesting to allow fans to be part of his journey,” Rob Connolly, Finlete’s co-founder and CEO, said in an interview with Newsweek Sports. “Three percent didn’t seem like it was a major deal to someone who’s already got $30 million coming.”
More news: Free Agent Reveals Unusual Reason for Choosing Orioles
Crowdfunding as an investment vehicle for professional athletes and their fans has taken root in other North American sports as well.
Commonwealth Sports has offerings in horse racing, golf and tennis. Vestible lists Arizona Cardinals linebacker Baron Browning as a partner, with other college football and basketball players “coming soon.” In Major League Baseball, where a player’s annual salary is guaranteed and starts at $760,000 in 2025, the floor for potential earnings is high.
CLEVELAND, OHIO – OCTOBER 12: Relief pitcher Emmanuel Clase #48 of the Cleveland Guardians celebrates after Colt Keith #33 of the Detroit Tigers grounded out to end ofGame Five of the Division Series at Progressive Field on October 12, 2024 in Cleveland, Ohio. The Guardians defeated the Tigers 7-3. Clase has partnered with Finlete, a crowdfunding investment vehicle that promises fans a share of the pitcher’s future earnings.
Jason Miller/Getty Images
Big League Advance pioneered the model of paying minor league players an upfront sum in exchange for a share of their future earnings. Fernando Tatis Jr. was the most famous BLA client, rewarding the firm mightily when he ultimately signed a 14-year, $340 million contract with the San Diego Padres.
More news: One MLB Manager Would Like to Repeal the Pitch Clock
Finlete takes the model a step further. Not only is it using crowdfunding as a source of the advance investment in minor leaguers — Leonardo Bernal (St. Louis Cardinals) and Echedry Vargas (Miami Marlins) are two of their clients — it’s partnered with a major leaguer who is much closer to reaping the rewards of a free-agent paycheck.
Clase is entering the fourth year of a five-year, $20 million contract extension signed in April 2022. He’ll make $4.5 million next year and $6 million in 2026.
More news: Owner Likely to OK Free Agent Contract for $240 Million All-Star: Report
The Guardians can exercise a $10 million option in Clase’s contract for the two years afterward — 2027 and 2028 — or buy out his contract for $2 million prior to either season.
Seventy percent of each fan’s deposit goes directly to Clase, Connolly said. The company gets 20 percent, while the remaining 10 percent goes to the broker partner and the funding portal partner Finlete uses.
More news: NBA Brothers Looking to Buy MLB Team For More Than $1 Billion: Reports
“If you’re investing in Emanuel Clase, there are going to be dividends,” co-founder Max Eisenberg told Newsweek Sports. “The upside of a really young teenage prospect, the upside is huge but it’s riskier as well. There’s a chance the prospects don’t make it to the stage Clase’s at now. But if you do, the fact that you took the risk by investing gives you that additional upside.”
According to Sportico, Comcast owns 7 percent of Finlete’s business, and venture capitalist Tim Draper has a $50,000 seed investment in the endeavor.
For more MLB news, visit Newsweek Sports.
