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.



RELATED TERMS
  1. Farm Team

    Farm team is a baseball reference applied to businesses that ...
  2. Official Strike

    An official strike is a work stoppage by union members that is ...
  3. Licensing Revenue

    Licensing revenue is income earned by a company for allowing ...
  4. Academy Of Financial Divorce Practitioners

    The Academy Of Financial Divorce Practitioners is an organization ...
  5. Chartered Portfolio Manager - CPM

    Chartered portfolio manager is a professional designation offered ...
  6. Backward Induction

    In game theory, backward induction is the process of deducing ...
Related Articles
  1. Small Business

    How Major League Baseball Makes Money

    Major League Baseball is big business. Let's take a look at where the money comes from.
  2. Investing

    Future MLB Plans Could Help Under Armour's Brand

    Major League Baseball is aiming for geographic expansion which could generate huge exposure for Under Armour products.
  3. Insights

    The 5 Most Valuable Major League Baseball Teams

    NY Yankees rule the roost despite declining attendance
  4. Managing Wealth

    Top 7 Pro Athlete Contracts

    The one thing that top athletes aren't is underpaid - these seven contracts had heads turning.
  5. Insights

    Pro Sports Unions: Do They Help Or Hurt?

    Unions have helped athletes land multi-million dollar contracts, but how do they affect the fans?
  6. Financial Advisor

    Latin America’s Economic Forecast

    After a ten-year run, the economies of Latin America are in a decline. For sustainable, long-term growth, the region needs structural reforms.
  7. Investing

    South American Economies Reel from Low Chinese Demand

    Move over America, the tides have changed. China now has the greatest impact on Latin American economies.
  8. Insights

    Who's Cashing In On Pro Sports Revenue?

    As professional sports leagues have become more popular, the millions of dollars generated has become billions.
  9. Personal Finance

    Sports With Winning Bonuses

    Whether professional athletes play for the love of the game or a nice payday, one thing is for certain: victory pays.
  10. Insights

    Facebook May Sign Deal to Live Stream MLB

    A Reuters report says the company is in talks to begin live streaming one game per week.
RELATED FAQS
  1. How Did Rogue Trader Peter Young Become Infamous?

    Peter Young's notoriety as a rogue trader results from the bizarre events following his arrest. Read Answer >>
  2. Why do futures' prices converge upon spot prices during the delivery month?

    Learn why as the delivery month of a futures contract approaches, the future's price will generally inch toward or even come ... Read Answer >>
  3. What is the Difference Between a Forward Rate and a Spot Rate?

    The forward rate is the settlement price of a forward contract, while the spot rate is the settlement price of a spot contract. Read Answer >>
  4. Where do most fund managers get their market information?

    Professional fund managers have access to resources that the "average Joe" investor does not. Read Answer >>
Hot Definitions
  1. Portfolio

    A portfolio is a grouping of financial assets such as stocks, bonds and cash equivalents, also their mutual, exchange-traded ...
  2. Gross Profit

    Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of ...
  3. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  4. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  5. Current Assets

    Current assets is a balance sheet item that represents the value of all assets that can reasonably expected to be converted ...
  6. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
Trading Center