With Cleveland Guardians closer Emmanuel Clase under investigation for baseball betting, fans that bet a combined $315,000 on him could be at risk of losing some or all of that investment.
Clase is the star attraction at Finlete, a San Diego company that offers fans the chance to invest in an athlete in exchange for a share of his future earnings.
The future earnings of Clase, 27, a three-time All-Star, could be influenced by Monday’s announcement that Major League Baseball had placed him on paid leave as part of what the league called a “sports betting investigation.” The sport in question is baseball, according to an official familiar with the probe but unauthorized to discuss it publicly.
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In its offering statement, Finlete noted that Clase’s current contract extends through 2026 and guarantees him at least $13.3 million, if the Guardians decline a 2027 buyout. The Guardians hold an option for $10 million in 2027 and another for $10 million in 2028. Clase would be eligible for free agency if the Guardians decline either option, or after the option years have been exercised.
However, if the league determines Clase had bet on any baseball game in which his team participated, he could be declared permanently ineligible. If the league determines he had bet on any other baseball games, he could be banned for one year.
On July 14, Finlete announced on Instagram that it had raised more than $315,000 from “hundreds of investors in Emmanuel Clase’s career.”
In its offering, beyond the boilerplate warning that investors should not invest money they could not afford to lose, Finlete cited injuries, illnesses and work stoppages among risks that could derail payments to investors.
Finlete also warned that players “suspended or banned” from the league “would not receive amounts under their existing player contract and may not be able to secure future playing contracts.”
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In his Clase sales pitch, Finlete co-founder Rob Connolly last year told Sportico: “Mariano Rivera was the best ever. And this guy’s in that conversation. So he’s got a full career in front of him. How the hell did we land this deal? It’s incredible.”
Finlete spelled that out in its offering: If you really want to make the big bucks as investors, Clase needs to sign a lucrative extension, or hit free agency and strike gold.
“The profitability of the Clase Agreement is substantially dependent on Mr. Clase entering into additional high-value MLB player contracts,” the offering read.
On its homepage, Finlete highlights seven baseball players with which it has agreements, Clase included. The other six are in the minor leagues.
Connolly did not immediately return a message seeking comment.
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This story originally appeared in Los Angeles Times.
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