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Thursday, December 19, 2013

Cubs’ Castro has $3.6 million seized in legal dispute

Chicago Cubs shortstop Starlin Castro had $3.6 million seized from his bank accounts Wednesday for refusing to pay 3 percent of his contract to a baseball school in the Dominican Republic, according to published reports.

Castro’s father, Diogenis Castros, reportedly signed the agreement with the school Mi Futuro Biliguer (My Future Big Leaguer) when Starlin was 15, agreeing to pay the school during his active career in the majors.

The seizure was made at various banks, reports said.

Castro signed a seven-year, $60 million contract extension with the Cubs in 2012. He paid part of his original $45,000 signing bonus to the school, a source said, but did not expect the payments to continue throughout his career.

Castro’s coach at the school, Manuel Nunez, was planning to sue Castro for “breach of trust and securities distraction,” according to a report, trying to force Castro to give him 3 percent of his contract.

Thanks to ZJ.

Repoz Posted: December 19, 2013 at 02:33 PM | 45 comment(s) Login to Bookmark
  Tags: cubs

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   1. Avoid running at all times.-S. Paige Posted: December 19, 2013 at 03:03 PM (#4621006)
Well, there's nothing sketchy about that school at all.
   2. Never Give an Inge (Dave) Posted: December 19, 2013 at 03:11 PM (#4621022)

Yeah, this story is insane on several different levels.
   3. snapper (history's 42nd greatest monster) Posted: December 19, 2013 at 03:15 PM (#4621032)
Were these US banks or Dominican? Article doesn't say.
   4. Random Transaction Generator Posted: December 19, 2013 at 03:36 PM (#4621062)
What is the legal framework for a father signing off the adult earnings of his underage son?

I understand that the father might have some say in the earnings before he turns 18 (or whatever "adult" is in the Dominican Republic), but after that point I can't believe that the legal system would force the son to pay the school since he wasn't even a signee on the contract.
(And if he did sign it, since he was underage at the time, how can it be enforced?)

Side note: "Diogenis and Starlin" sounds like a really cool book/movie title.
   5. Fear is Moses Taylor's Bacon Bits Posted: December 19, 2013 at 03:36 PM (#4621064)
Seems like Castro should be getting this back eventually, I'd reckon.
   6. Pasta-diving Jeter (jmac66) Posted: December 19, 2013 at 03:41 PM (#4621073)
did anyone else read the headline as "Cuba's Castro"?
   7. thetailor Posted: December 19, 2013 at 03:47 PM (#4621080)
I'm not sure why everyone around here is shocked by this. I mean, it depends on the contract. I agree that the parent signing off on the future earnings of a minor child sounds like a no-no, but I'd love to hear the basis for the school's claim to entitlement. And also, would love to know what court granted a seizure like this -- I'm assuming the bank is in the United States.
   8. snapper (history's 42nd greatest monster) Posted: December 19, 2013 at 03:51 PM (#4621090)
I'm not sure why everyone around here is shocked by this. I mean, it depends on the contract. I agree that the parent signing off on the future earnings of a minor child sounds like a no-no, but I'd love to hear the basis for the school's claim to entitlement. And also, would love to know what court granted a seizure like this -- I'm assuming the bank is in the United States.

I can't imagine it's a US bank. TFA says that the school is "planning to sue". They don't even have a judgement yet.

I have to think this is some cronyism happening in a Dominican bank. Which raises the question, if Castro knew this "contract" was out there, WTF did he have his money in a Dominican bank?
   9. J. Sosa Posted: December 19, 2013 at 04:09 PM (#4621110)
I would have to think things like this go on a lot regarding buscones and "schools". Third party ownership in soccer is widespread and this isn't that dissimilar. From my limited reading on the subject it seems to be more of a known issue in soccer. It is an open question as to how much money some players actually receive even into their 30s in soccer.
   10. boteman digs the circuit clout Posted: December 19, 2013 at 04:20 PM (#4621123)
I'm skeptical about applying U.S. standards and practices to Dominican Republic institutions. Let's just say that it's a bit different down there.
   11. snapper (history's 42nd greatest monster) Posted: December 19, 2013 at 04:26 PM (#4621134)
I'm skeptical about applying U.S. standards and practices to Dominican Republic institutions. Let's just say that it's a bit different down there.

Agree, that's why I'm thinking this has to be in the DR.

But that still leaves me asking, knowing this issue exists, WTF would Castro have any of his money in the DR?
   12. Shooty Survived the Shutdown of '14! Posted: December 19, 2013 at 04:32 PM (#4621138)
WTF would Castro have any of his money in the DR?

Why not?
   13. snapper (history's 42nd greatest monster) Posted: December 19, 2013 at 04:33 PM (#4621141)
Why not?

Because he knew there was someone claiming to have the rights to 3% of his income.

If you think someone may get a ######## judgement against you, you keep your assets far, far away from them.
   14. The Yankee Clapper Posted: December 19, 2013 at 04:33 PM (#4621142)
I suspect "seized" is more likely to be "frozen" given the article's skimpy description of the legal process.
   15. The Good Face Posted: December 19, 2013 at 04:34 PM (#4621143)
But that still leaves me asking, knowing this issue exists, WTF would Castro have any of his money in the DR?


Because he probably has the equivalent of an 8th grade education? Because most of the people he knows and trusts are probably Dominican? Because he's a jock whose life focus has been baseball since before he hit puberty and he's ignorant/uninterested in anything much beyond baseball, broads and booze?
   16. Shooty Survived the Shutdown of '14! Posted: December 19, 2013 at 04:39 PM (#4621148)
Because he knew there was someone claiming to have the rights to 3% of his income.

Yeah, but it sounds like he didn't think they did.
   17. Shooty Survived the Shutdown of '14! Posted: December 19, 2013 at 04:39 PM (#4621149)
I suspect "seized" is more likely to be "frozen" given the article's skimpy description of the legal process.

I suspect you're right.
   18. snapper (history's 42nd greatest monster) Posted: December 19, 2013 at 04:40 PM (#4621151)
Because he probably has the equivalent of an 8th grade education? Because most of the people he knows and trusts are probably Dominican? Because he's a jock whose life focus has been baseball since before he hit puberty and he's ignorant/uninterested in anything much beyond baseball, broads and booze?

Well, yes. The blame probably falls on his agent/manager/accountants.
   19. Johnny Sycophant-Laden Fora Posted: December 19, 2013 at 05:00 PM (#4621165)
I suspect "seized" is more likely to be "frozen" given the article's skimpy description of the legal process


You are probably correct.

My guess is that they sued in the DR, got a BS judgment (probably by default)
took that judgment, sued on it (the DR judgment) in the US (called domestication), probably then entered judgment by default, and served restraining notices on US Banks

the money is probably currently restrained, and the school is probably hoping that this inconveniences Starlin enough to agree to pay them some money to release the restraint and go away.

   20. Adam G Posted: December 19, 2013 at 05:07 PM (#4621173)
In addition to all of this, the dollars don't appear to add up... 3% of $60mil is only $1.8mil... and that is over a 7 year period, so he hasn't even seen most of that $60mil yet.

More reason to think that "seized" is more likely "frozen".
   21. Misirlou is on hiding to nowhere Posted: December 19, 2013 at 05:08 PM (#4621175)
Is this even legal?
   22. Never Give an Inge (Dave) Posted: December 19, 2013 at 05:13 PM (#4621181)

In addition to all of this, the dollars don't appear to add up... 3% of $60mil is only $1.8mil... and that is over a 7 year period, so he hasn't even seen most of that $60mil yet.

Yes, the incorrect math was the part that immediately jumped out at me, in addition to the other points people have raised.
   23. Scott Ross Posted: December 19, 2013 at 05:36 PM (#4621210)
did anyone else read Starlin's dad's name as Biogenesis?
   24. zonk Posted: December 19, 2013 at 05:38 PM (#4621214)
More reason to think that "seized" is more likely "frozen".


Just like Starlin's development!
   25. Johnny Sycophant-Laden Fora Posted: December 19, 2013 at 05:42 PM (#4621219)
More reason to think that "seized" is more likely "frozen".


Just like Starlin's development!

I think Starlin's development may have ceased....
   26. Johnny Sycophant-Laden Fora Posted: December 19, 2013 at 05:43 PM (#4621220)
In addition to all of this, the dollars don't appear to add up... 3% of $60mil is only $1.8mil... and that is over a 7 year period, so he hasn't even seen most of that $60mil yet.

Yes, the incorrect math was the part that immediately jumped out at me, in addition to the other points people have raised.


FWIW in New York a restraining notice will act to restrain up to twice the judgment amount.
   27. Walt Davis Posted: December 19, 2013 at 09:25 PM (#4621369)
"Diogenis and Starlin" sounds like a really cool book/movie title.

Or a horrible French comic book duo
   28. Publius Publicola Posted: December 19, 2013 at 10:16 PM (#4621392)
I did a double-take as my quickread reaction thought it said "Cuba's Castro has $3.6M seized..." and I thought "Wow. The sugarcane wall is coming down!".
   29. McCoy Posted: December 19, 2013 at 11:12 PM (#4621426)
and he's ignorant/uninterested in anything much beyond baseball, broads and booze?

Sounds like a primate.
   30. ptodd Posted: December 20, 2013 at 12:48 AM (#4621456)
For a contract to be valid both parties must receive something of equivalent value. What did Castro receive from the school in return for this, and how is the fathers promise binding on his son?
   31. Misirlou is on hiding to nowhere Posted: December 20, 2013 at 12:53 AM (#4621459)
For a contract to be valid both parties must receive something of equivalent value.


How does this explain Vernon Wells?
   32. Walt Davis Posted: December 20, 2013 at 01:48 AM (#4621472)
Parents usually do have lot of contract rights over their children -- those kid actors aren't negotiating their own deals. There are a number of examples of older kid stars suing their parents for screwing them over.

The negotiation may have gone something like this:

"Gosh, Mr. Castro, it's a shame you can't afford our tuition this year. Starlin's just a year away from being eligible to sign with a team, it would be a shame if his development completely stalled now rather than 8 years from now."

"Please there must be something we can do. Is there some sort of scholarship or something?"

"Well, we could waive the tuition and pay room and board in exchange for ..."

I'm sure it was sleazier than that but I'd assume you see similar deals in the US. I've certainly seen kids under 16 on shows like X Factor and that pretty much comes with a period of indentured servitude, signing away performance rights, etc. and I assume it's the parents doing it.
   33. Athletic Supporter can feel the slow rot Posted: December 20, 2013 at 02:06 AM (#4621483)
[28] I read it that way too but assumed it was Castro doing the seizing (of money from Cuban players presumably).
   34. Jeltzandini Posted: December 20, 2013 at 09:19 AM (#4621535)
Is "Mi Futuro Biliguer" real Spanish? Because it sounds like clueless tourist Spanish.
   35. Random Transaction Generator Posted: December 20, 2013 at 09:38 AM (#4621542)
Parents usually do have lot of contract rights over their children -- those kid actors aren't negotiating their own deals. There are a number of examples of older kid stars suing their parents for screwing them over.


That's true, but I don't think any of those contracts covered the actors after they reached adulthood.
   36. zonk Posted: December 20, 2013 at 10:36 AM (#4621563)
and he's ignorant/uninterested in anything much beyond baseball, broads and booze?

Sounds like a primate.


Not if he doesn't have obscure music tastes, a self-inflated view of his own cinema expertise, and bizarrely strong opinions on various aspects of air travel he doesn't.
   37. bread and rice Posted: December 20, 2013 at 01:10 PM (#4621698)
Not if he doesn't have obscure music tastes


Pavement is obscure?
   38. snapper (history's 42nd greatest monster) Posted: December 20, 2013 at 01:45 PM (#4621734)
Pavement is obscure?

I've never heard of them outside of BBTF.
   39. Bitter Mouse Posted: December 20, 2013 at 01:51 PM (#4621741)
Pavement is obscure?


Yes
   40. this space for rent Posted: December 20, 2013 at 01:58 PM (#4621747)
For a contract to be valid both parties must receive something of equivalent value.

How does this explain Vernon Wells?


It doesn't -- and it's not true. Both sides have to receive something of value ("consideration"), but there is no requirement that they receive things of equivalent value.
   41. snapper (history's 42nd greatest monster) Posted: December 20, 2013 at 02:00 PM (#4621749)
It doesn't -- and it's not true. Both sides have to receive something of value ("consideration"), but there is no requirement that they receive things of equivalent value.

Right, otherwise stadiums couldn't charge $10 for a warm Bud.
   42. Shooty Survived the Shutdown of '14! Posted: December 20, 2013 at 02:02 PM (#4621752)
Pavement is obscure?



Yes


They aren't obscure, but they are rad.
   43. this space for rent Posted: December 20, 2013 at 03:02 PM (#4621807)
Right, otherwise stadiums couldn't charge $10 for a warm Bud.


Technically, that's not a contract -- a contract is a promise to exchange one thing/action/etc. for another, not the actual exchange itself.

So you can give someone $10 for nothing and it's legally theirs -- or even worse, you can give them $10 and get a warm Bud in exchange.

But if you promise to give someone $10 for nothing and change your mind later, there's no consideration, so they're (usually) out of luck.
   44. What did Billy Ripken have against ElRoy Face? Posted: December 21, 2013 at 02:26 PM (#4622190)
Which raises the question, if Castro knew this "contract" was out there, WTF did he have his money in a Dominican bank?


Yes, because Starlin Castro is well-known for his constant focus and attention to detail.
   45. thetailor Posted: December 23, 2013 at 05:59 PM (#4623122)
Well no use in speculating. Here's the info:

Castro signed a seven-year, $60 million deal with the Cubs on Aug. 28, 2012 — which includes a $16 million option in 2020 — leading to a $1.8 million claim from the baseball academy representative. Under Dominican law, Castro's attorney said, authorities freeze double the claimed amount pending legal proceedings.

And

Robert Martinez, one of Castro's attorneys, said in a phone call from the Dominican Republic that the contract was "absurd and illegal … (in large part) because Dominican law prohibits a parent from promising anything from a child beyond 18 years of age."

And

The two-page, 10-part contract at issue — signed by Castro's father, Nunez, two witnesses and a notary public — grants sweeping representation rights to the academy agent and places large financial obligations on Castro until his retirement from professional baseball.


Source.

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