Latin Baseball Futures

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DEFINITION of 'Latin Baseball Futures'

A financial contract used to speculate on the potential of teenage baseball players from Latin America who are training to earn spots in Major League Baseball (MLB). Investors in Latin baseball futures finance academies that train the young athletes and receive a return on their investment when a player is signed to an MLB team. The payoff comes from a percentage of the player's signing bonus.

BREAKING DOWN 'Latin Baseball Futures'

Proponents of Latin baseball futures see it as a way to provide opportunities for economically disadvantaged young men and their families. The academies not only train the players in baseball but also provide them with food, clothing and housing. Critics are concerned that the conditions at some academies are poor and that the system interferes with the boys' education and creates incentives for steroid use.



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RELATED FAQS
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  4. What does a futures contract cost?

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    The primary risks associated with trading derivatives are market, counterparty, liquidity and interconnection risks. Derivatives ... Read Full Answer >>
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