ProPublica investigation alleges Dominican baseball system traps young players and families
The report examines informal deals with under-16 players, trainer commissions and high-interest loans tied to future signing bonuses.
A ProPublica investigation has detailed a Dominican baseball system in which Major League Baseball teams allegedly make informal agreements with players before they are legally eligible to sign. The report says trainers and moneylenders can then claim substantial portions of players’ future signing bonuses.
The investigation centres on Belfi Rivera, whose family was told in 2021 that the Arizona Diamondbacks had agreed to pay him US$1.8 million after his 16th birthday. ProPublica reports that Rivera’s trainer received a 35 per cent commission, while more than US$950,000 ultimately went to lender Santo Caraballo or parties connected to earlier agreements.
Rivera’s parents told ProPublica they borrowed money from Caraballo at high interest and later transferred much of Rivera’s bonus. They filed a complaint alleging fraud, but withdrew it after Rivera, who had turned 18, signed documents that dismissed his lawyers and ended the criminal action. The allegations have not been established in court.
The report also examines Caraballo’s business and financial relationship with former Boston Red Sox player David Ortiz. ProPublica says Ortiz acknowledged investing millions in Caraballo’s baseball business, while Ortiz disputes knowingly supporting any operation that exploited young players. He has also said his opposition to an international draft was based on its potential effect on Dominican baseball.
Dominican players make up about 10 per cent of Major League Baseball, and all 30 teams operate academies in the country. ProPublica reports that trainers commonly receive 35 to 50 per cent of signing bonuses, while fewer than 10 per cent of signed prospects reach the majors.
The investigation says Major League Baseball and the players’ union have long known about early agreements and high-interest lending. Both have acknowledged problems in the system, but the league, the union, the Diamondbacks and several named teams declined to comment or referred to previous statements. ProPublica notes that many early agreements are verbal, leaving the scale of the practice difficult to measure.
