MLB's biggest star is once again in hot water financially.
Dodgers star Shohei Ohtani has found himself in another controversy, although this one doesn't have to do with gambling. Ohtani is now wrapped up in a real estate controversy. The Dodgers' All-Star is being sued by a Hawaii real estate investor concerning a $240 million luxury housing project on the Big Island's Hapuna Coast.
The lawsuit was filed on Friday, August 8, with both Ohtani and his agent being named.
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Here is what we know about Ohtani's real estate controversy.
Shohei Ohtani real estate controversy, explained
The lawsuit says that Ohtani's agent Nez Balelo "increasingly demanded concessions from developer Kevin J. Hayes Sr. and real estate broker Tomoko Matsumoto before demanding that their business partner, Kingsbarn Realty Capital, drop them from the deal."
The lawsuit continues by saying, "Balelo and [Ohtani], who were brought into the venture solely for [Ohtani's] promotional and branding value, exploited their celebrity leverage to destabilize and ultimately dismantle Plaintiffs' role in the project -- for no reason other than their own financial self-interest."
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Ohtani and Balelo stand accused of "tortious interference and unjust enrichment." The houses in the real estate development project were expected to average $17.3 million each. Hayes and Matsuomoto, the latter of whom was expected to be the listing agent for the properties, say that Ohtani and Balelo also tried to "undermine their interests in a second, neighboring venture."
The lawsuit puts it plainly that "this case is about abuse of power. Defendants used threats and baseless legal claims to force a business partner to betray its contractual obligations and strip Plaintiffs of the very project they conceived and built. Defendants must be held accountable for their actions, not shielded by fame or behind-the-scenes agents acting with impunity. Plaintiffs bring this suit to expose Defendants' misconduct and to ensure that the rules of contract, fair dealing, and accountability apply equally to all -- celebrity or not."
A brochure about the project lists Ohtani as the "celebrity spokesperson" for the project and that the baseball star had committed to buying one of the 14 planned residences within the project. The lawsuit also says that the deal for this real estate partnership has been 11 years in the making. It says that "Balelo 'quickly became a disruptive force,' threatening to pull Ohtani from the deal if concessions weren't made."
At that point, Kingsbarn started to always align with Ohtani and Balelo. This led to what the suit calls "a coordinated ambush" that took place in July and resulted in the firings of both Hayes and Matsumoto.
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"Kingsbarn openly admitted during the call that Balelo had demanded the terminations and that they were being done solely to placate him. Plaintiffs stand to lose millions of dollars in compensation tied to projected homebuilding profit, construction management fees, and broker commissions."
Who is Shohei Ohtani's agent?
Ohtani's agent is Nez Balelo, who works with CAA Baseball. He is a former baseball player himself, playing middle infield. Balelo also represents Marlins pitcher Sandy Alcantara, Braves slugger Marcell Ozuna and former infielder Jean Segura. Balelo joined CAA in 2006 and has been with the company for nearly 20 years.
He went to Pepperdine University. The Mariners drafted Balelo in the fourth round of the 1985 MLB Draft. He spent four seasons in the minors and reached as high as Double-A.