A new investigation by ProPublica reveals that Major League Baseball teams and their affiliated trainers have extracted up to $500 million from Dominican baseball prospects since 2012 through a combination of unwritten contracts and high-interest lending practices. The report finds that while MLB teams paid $1.042 billion in bonuses to Dominican players between 2012 and early 2026, a significant portion was immediately diverted to trainers and moneylenders rather than reaching the players or their families.
The Dominican Republic sends more players to the major leagues than any country outside the United States, accounting for approximately 10% of the league's talent pool. However, the investigation highlights a regulatory gap: while US and Canadian players enter via a formal draft, Dominican players are signed through a free-market system where trainers, known as buscones, often retain 35% to 50% of signing bonuses. The report notes that MLB rules prohibit official deals with players under age 16, a restriction teams have long circumvented through handshake agreements called preacuerdos.
What the Right Is Saying
Free-market proponents and some baseball industry insiders argue that the system provides life-changing opportunities for families in a country where average annual income is significantly lower than the signing bonuses offered. They maintain that the high costs associated with training, room, and board justify the trainers' share of the bonuses. Industry voices note that without the infrastructure provided by these academies, many talented youths would have no pathway to professional sports.
Regarding the involvement of prominent figures, Hall of Famer David Ortiz addressed the scrutiny of his business partner Santo Caraballo. In a statement through his lawyer, Ortiz noted that his business relationship with Caraballo 'began to come to an end' more than 18 months ago. Ortiz stated he ended his personal relationship with Caraballo 'a year and a half to two years ago' after 'noticing conduct by Mr. Caraballo that I considered inappropriate.' Ortiz added that he placed relevant matters in the hands of his legal advisors after distancing himself personally.
What the Left Is Saying
Progressive labor advocates and players' rights groups argue that the current system exploits the economic vulnerability of young athletes in a developing nation. Critics point to the lack of educational support in training academies, where the report states education often falls by the wayside, as a failure of corporate responsibility. Advocates contend that the power imbalance between MLB franchises and impoverished families allows teams to bypass labor protections, effectively creating a pipeline where talent is commodified before players reach legal adulthood.
The case of Belfi Rivera, a 14-year-old who signed a handshake deal with the Arizona Diamondbacks for a $1.8 million bonus, is cited as a primary example. In Rivera's case, $630,000 went to his trainer, and over $950,000 went to Santo Caraballo, a lender with no role in the player's development. Critics argue this structure prioritizes profit extraction over athlete welfare, urging MLB to enforce stricter oversight on preacuerdos and lending practices.
What the Numbers Show
According to ProPublica's analysis of data from 2012 through the beginning of 2026, major league teams paid Dominican prospects a total of $1.042 billion in bonuses. The investigation estimates that up to $500 million of this sum was siphoned off by trainers and lenders almost immediately. The report indicates that there are approximately 6,000 trainers operating in the Dominican Republic, a number sourced from a national trade association.
Most signing bonuses for Dominican prospects are valued around $30,000, though top prospects can receive six or seven-figure sums. Fewer than 10% of the approximately 450 prospects signed each year will ever play in the major leagues. The Dominican Republic, with a population roughly equal to Ohio's, had 144 players in the major leagues last year. The country repealed its usury laws 24 years ago, a legal change that has allowed moneylenders, or prestamistas, to charge high interest rates on loans secured by future baseball earnings.
The Bottom Line
The investigation highlights a persistent regulatory challenge in international sports recruitment. While MLB rules bar official contracts with players under 16, the widespread use of preacuerdos allows teams to secure talent years in advance. This has created a secondary market of lenders who target these future payouts, often resulting in players receiving a fraction of their agreed-upon bonuses.
As MLB continues to navigate international player acquisition, the findings raise questions about the ethical obligations of franchises operating in jurisdictions with limited financial regulations. The disparity between the total bonuses paid and the amount retained by players underscores the need for potential policy reforms regarding transparency in international signings and the regulation of third-party intermediaries in the sport.