Bad Bunny's Sports Agency To Pay Four Million Dollars After Losing Lawsuit with MLB

In Spanish

The legal dispute involving RIMAS Sports, Bad Bunny's agency, and other investors tied to Major League Baseball (MLB) players, has concluded. The case ended with a $4 million fine and the suspension of part of RIMAS' team from acting as agents within MLB.

The investigation, which began in a New York court in March, scrutinized the company's actions aimed at securing potential agreements with players who were not under contract with the agency.

RIMAS reportedly offered incentives such as cash, concert tickets for Bad Bunny, jerseys, watches, and even loans to attract players. These activities triggered an investigation by the MLB Players Association (MLBPA), alleging violations of MLB regulations.

According to MLB rules, it is illegal to provide gifts, rewards, or incentives to any player within the MLB system unless they are already represented by the agency. This practice cannot be used as a recruitment method.

One key case in the investigation involved RIMAS offering a $200,000 loan, a $19,500 gift, VIP tickets to Bad Bunny concerts, and access to other events like NBA games featuring the Phoenix Suns. These actions became central to the MLBPA's inquiry.

The controversy sparked criticism in Puerto Rico, notably from Jorge L. Rodríguez, President of the Economic Freedom Institute for the island. He pointed out the irony of Bad Bunny's anti-corruption rhetoric, accusing the artist of engaging in similar practices through his company.

Rodríguez commented, "And this isn't corruption?"

Although the investigation did not disclose specific names, RIMAS admitted to providing benefits on four occasions.

Instances included tickets for 13 players to attend a Bad Bunny concert in Puerto Rico on December 20, 2021, and other events such as a March 6, 2022 Phoenix Suns game, a March 30, 2022 concert in Orlando, and a March 4, 2022 NBA game.

In her ruling, Judge Ruth Moscovitch stated, "There can be no doubt... that the overwhelming evidence supports a decision in favor of the MLBPA."

The legal battle also involved a counterclaim from RIMAS in March, accusing the MLBPA of obstructing deals with players such as 2023 National League MVP Ronald Acuña Jr. (Atlanta Braves) and Francisco Álvarez (New York Mets).

RIMAS also alleged interference in existing contracts. Ultimately, the court ruled in favor of the MLBPA. In addition to the fine, two unnamed agents were banned from representing players for five years, while the only publicly identified agent, William Arroyo, received a three-year suspension.

MLB is known for its strict enforcement of rules, penalizing violations regardless of whether they involve players, executives, or agents. A recent example was the investigation into Shohei Ohtani and his agent over alleged involvement in sports betting. Despite Ohtani's superstar status, the case proceeded, ultimately clearing him of wrongdoing after it was proven he had no direct involvement in gambling activities.