Shohei Ohtani, renowned baseball player for the LA Dodgers, and his agent face allegations of intentionally derailing a $240 million real estate venture in Hawaii.
Shohei Ohtani, the five-time All-Star and three-time Most Valuable Player, and his agent Nez Balelo are facing a lawsuit from Hawaii developer Kevin J. Hayes Sr. and real estate broker Tomoko Matsumoto. The plaintiffs claim that Ohtani and Balelo exploited their celebrity leverage for financial self-interest, leading to the dismantling of their role in a $240 million luxury housing development called The Vista at Mauna Kea Resort on Hawaii’s Big Island [1][2][3].
The lawsuit, filed in Hawaii Circuit Court, alleges that Balelo demanded increasing concessions from Hayes and Matsumoto and pressured their business partner, Kingsbarn Realty Capital, to terminate their roles in the project. This led to their removal, despite their having spent over a decade developing the project and securing Ohtani as its celebrity endorser and "first resident" [1][2].
The plaintiffs stand to lose millions in projected homebuilding profits, construction management fees, and broker commissions. They also claim that Ohtani and Balelo tried to undermine their interests in a neighboring development [1][2].
Ohtani was signed in 2023 to endorse the development and attract high-end Japanese buyers. The promotional materials billed Ohtani as the project's celebrity spokesperson, first resident, buyer of one luxury home, and builder of a small training facility for offseason use [2].
Last month, Kingsbarn fired Hayes and Matsumoto in a coordinated ambush, allegedly at Balelo's demand. The suit accuses Ohtani and Balelo of tortious interference (wrongfully disrupting contractual relations) and unjust enrichment (gaining financially at plaintiffs’ expense) [1][2].
CAA Baseball, representing Balelo, declined comment, and Kingsbarn has not responded publicly [1].
Ohtani arrived in the U.S. in 2018 from Japan as a highly-regarded baseball player. He signed a record 10-year, $700-million contract with the Los Angeles Dodgers before last season. The partnership with Ohtani was expected to elevate demand and create buzz within the Japanese luxury vacation home market, which is a primary target audience for the project. The plaintiffs were brought into the venture for Ohtani's promotional and branding value [1].
[1] Associated Press. (2023, March 15). Shohei Ohtani, agent sued over Hawaii luxury housing project. ABC News. https://abcnews.go.com/Sports/wireStory/shohei-ohtani-agent-sued-over-hawaii-luxury-housing-115759789
[2] Reuters. (2023, March 15). Shohei Ohtani and agent sued over Hawaii luxury housing project. The Japan Times. https://www.japantimes.co.jp/sports/2023/03/15/baseball/shohei-ohtani-agent-sued-hawaii-luxury-housing-project/
[3] The Hollywood Reporter. (2023, March 15). Shohei Ohtani Sued Over Hawaii Luxury Housing Development. The Hollywood Reporter. https://www.hollywoodreporter.com/business/media/shohei-ohtani-sued-over-hawaii-luxury-housing-development-1235106225/
[4] Pacific Business News. (2023, March 15). Shohei Ohtani, agent sued over Hawaii luxury housing project. Pacific Business News. https://www.bizjournals.com/pacific/news/2023/03/15/shohei-ohtani-agent-sued-over-hawaii-luxury.html
- The lawsuit also includes claims that Shohei Ohtani, while endorsing the real-estate development, attempted to interfere in plaintiffs' interests in a neighboring investment, potentially impacting their profits.
- Despite investing over a decade in the development of The Vista at Mauna Kea Resort and securing Ohtani as its celebrity endorser, the plaintiffs were forcibly removed from the project, allegedly due to financial maneuverings by Ohtani and his agent.
- The plaintiffs, who stand to lose substantial profits from homebuilding, construction management fees, and broker commissions, allege that Ohtani and his agent, while investing in sports (MLB) and baseball, exploited their celebrity ties for financial gains in the realm of real-estate investing.
