Bad Bunny's Rimas Sports Settles Lawsuit with MLBPA Over Violations.
In March 2023, Bad Bunny’s sports agency, Rimas Sports, reached a settlement with the Major League Baseball Players Association (MLBPA) to resolve a legal dispute stemming from violations of agent regulations.
The terms of the settlement remain undisclosed, but the agreement brings an end to a lengthy legal battle that began in April 2022.
The Origins of the Lawsuit: Alleged Violations
Rimas Sports, co-founded by Bad Bunny (Benito Martínez Ocasio) and his manager Noah Assad in 2021, found itself at odds with the MLBPA after accusations surfaced regarding improper inducements.
The MLBPA claimed that the agency offered prospective MLB players gifts, including free VIP tickets to Bad Bunny’s concerts, suite access to a Phoenix Suns game, and a $200,000 interest-free loan.
These actions violated MLB agent regulations, leading to penalties that included a $400,000 fine and the decertification of agent William Arroyo and some of its key executives, including Assad and Jonathan Miranda.
Rimas Sports’ Response: Alleging Discrimination
In response, Rimas Sports filed a lawsuit against the MLBPA in June 2022. The agency argued that the penalties were part of a broader, discriminatory effort by the MLBPA to protect traditional agents from competition.
Specifically, Rimas claimed that its Puerto Rican leadership and disruptive approach to player representation made them a target. The agency sought an injunction to reverse the penalties, which they described as a "death penalty" for their business, arguing that it had harmed their ability to secure deals with high-profile clients, including MLB star Ronald Acuña Jr.
MLBPA Defends Its Actions
The MLBPA strongly defended its actions, stating that the penalties were necessary to uphold the integrity of the agent certification process. In court filings, the union described Rimas Sports’ conduct as “egregious and systemic.”
The MLBPA argued that the agency’s business model relied on offering forbidden gifts to players, and these actions were detrimental to the fair and transparent operation of the league’s agent system.
Arbitration Ruling and Settlement
In October 2022, an arbitrator upheld the MLBPA’s penalties, including five-year bans for key Rimas Sports figures Assad and Miranda, as well as a restriction on Arroyo’s re-certification.
Despite the legal setbacks, the two parties reached a settlement in March 2023, ending the lawsuit. While the details of the settlement were not disclosed, it marks a conclusion to a year-long dispute between the sports agency and the MLBPA.
Looking Ahead: What This Means for Rimas Sports and MLB Representation
While the settlement brings closure to this legal battle, it leaves open questions about the future of Rimas Sports and its place in MLB player representation. The case highlights the growing role of celebrity-backed agencies in professional sports and the potential for disruption in established industries.
As for the MLBPA, the case serves as a reminder of its responsibility to enforce regulations designed to protect the integrity of the agent-player relationship. Fans and industry insiders alike will be watching closely to see how this case influences future disputes within sports representation.
Rimas Sports is a sports agency co-founded by Puerto Rican reggaeton artist Bad Bunny (real name: Benito Martínez Ocasio) and his longtime manager Noah Assad in 2021. The agency was established with the aim of representing athletes, particularly in Major League Baseball (MLB), and it stands out for its celebrity-backed approach to sports management.
Rimas Sports gained attention not just for its connection to Bad Bunny, one of the most influential Latin music artists, but also for its unconventional business model. The agency made waves for disrupting traditional sports representation, with its focus on offering athletes personalized services and leveraging Bad Bunny's massive platform to attract talent.
In response, Rimas Sports filed a lawsuit against the MLBPA, arguing that the penalties were discriminatory and part of a larger effort to protect traditional agents from competition. The legal dispute was resolved in 2023, with the two parties settling the matter
