Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Latin Baseball Futures

What it is:

Latin baseball futures are investments in Dominican, Cuban or other Latin American baseball coaches or academies that train up-and-coming baseball players who could one day obtain multimillion-dollar contracts in the sport.

How it works (Example):

Let's say a group of American baseball fans learns of a talented boy in the Dominican Republic. The group feels the boy could become a major league baseball player in four years if he has the right training. Accordingly, the investors pool their money to send him to a buscone, which is an academy that provides athletic training (as well as food, clothing, shelter and general education). In return they receive 50% of the boy's bonuses if he signs with a team.
 

Why it Matters:

Latin baseball futures essentially finance training academies for baseball players, and in return they receive a cut of the players' future income. Clearly the strategy is risky because players could be injured, not chosen by a ball club, or change their minds about their careers. However, the idea can also reap huge returns -- major league players can get contracts worth tens of millions of dollars.