Hawaii real estate venture worth $240M allegedly hampered by Shohei Ohtani and his agent
In a surprising turn of events, professional baseball player Shohei Ohtani finds himself embroiled in a legal dispute with a Hawaii real estate investor, Kevin J. Hayes Sr., broker Tomoko Matsumoto, and their business partner. The dispute centres around a $240 million luxury housing development on Hawaii's Big Island.
According to court documents filed in Hawaii Circuit Court, Hayes and Matsumoto, who developed the project over more than a decade, entered into an endorsement agreement with Ohtani in 2023. The deal positioned Ohtani as both a spokesperson and a prospective buyer of one of the 14 residences.
The lawsuit alleges that Ohtani's agent, Nez Balelo, imposed increasing demands and became a "disruptive force" over two years. Balelo is accused of threatening litigation to pressure Kingsbarn Realty Capital, a business partner of Hayes and Matsumoto, into terminating them from the project.
The plaintiffs argue that Balelo's threats concerning the use of Ohtani's name, image, and likeness for promoting a separate real estate project were baseless and an abuse of power. This, they claim, forced a betrayal of contractual obligations and deprived Hayes and Matsumoto of their project.
The investment brochure for The Vista at Mauna Kea Resort, where the development is located, calls Ohtani "Japan's Babe Ruth" and the "1st Resident," giving him top billing ahead of the iconic Mauna Kea Resort and Hapuna Beach. The brochure also states that Ohtani has committed to purchasing one of the 14 residences within the project and will construct a small hitting and pitching facility for preseason training.
The partnership with Ohtani was expected to accelerate the pace of sales and help achieve pricing objectives, according to the investment brochure. However, the plaintiffs claim that Ohtani and Balelo also tried to undermine their interests in a second, neighboring venture.
The lawsuit alleges tortious interference and unjust enrichment. Ohtani, who is a five-time All-Star and three-time Most Valuable Player, is currently focused on baseball rather than the real estate issues. Last month, Kingsbarn fired Hayes and Matsumoto in a coordinated ambush, admitting during the call that Balelo had demanded the terminations. The plaintiffs stand to lose millions of dollars in compensation tied to projected homebuilding profit, construction management fees, and broker commissions.
Ohtani, who arrived from Japan in 2018, signed a record 10-year, $700-million contract with the Los Angeles Dodgers before last season. Despite the legal dispute, he helped the Dodgers win the 2024 World Series.
[1] - Source: ESPN [2] - Source: The New York Times
- Shohei Ohtani, a professional baseball player and five-time All-Star, has found himself in a legal dispute with Hawaii real estate investors over a luxury housing development, with the events centered around an endorsement agreement related to a $240 million project.
- According to an investment brochure for The Vista at Mauna Kea Resort, where the development is located, Ohtani was to be positioned as both a spokesperson and a prospective buyer of one of the 14 residences, with the partnership expected to help accelerate sales and achieve pricing objectives.
- The lawsuit, which was filed in Hawaii Circuit Court, alleges that Ohtani's agent, Nez Balelo, engaged in tortious interference and unjust enrichment, threatening litigation to pressure a business partner into terminating the real estate investors from the project.
- Despite the ongoing legal dispute, Ohtani, who signed a record 10-year, $700-million contract with the Los Angeles Dodgers, helped the team win the 2024 World Series. In the midst of the baseball season, the financial implications of the legal dispute pertaining to the Hawaii real-estate project could have significant consequences for the investors.
