Los Angeles Dodgers superstar Shohei Ohtani and his agent have been sued for allegedly sabotaging a $240 million real estate project in Hawaii.
Hawaii property tycoons Kevin J. Hayes Sr. and Tomoko Matsumoto have alleged that the current National League MVP and his agent, Nez Balelo, orchestrated their removal from a high-end property development, resulting in significant financial losses for them.
Hayes, who is a developer, along with Matsumoto, a real estate broker, initially partnered with the MLB star and his agent to market their upscale housing initiative on the Big Island.
Nonetheless, as per a lawsuit filed in Hawaii last week, the duo contends that not long after involving the Japanese athlete in the project, Ohtani and Balelo approached Hayes and Matsumoto’s associate, Kingsbarn Realty Capital, to have them ousted.
CAA, Balelo’s agency that represents Ohtani, did not immediately respond to requests for comment from the Daily Mail.
The lawsuit alleges that “Balelo and (Ohtani), who were invited for (Ohtani’s) promotional clout, misused their fame to disrupt and eventually dismantle the Plaintiffs’ involvement in the venture merely for personal financial gain.”
Los Angeles Dodgers superstar Shohei Ohtani (pictured) and his agent have been sued
Ohatni and his agent Nez Balelo (left) are accused of sabotaging a $240m real estate deal
Ohtani, who secured a 10-year, $700 million deal in the 2023 offseason, along with Balelo, is accused of delivering an ultimatum, demanding that Kingsbarn dismiss Hayes and Matsumoto from the project or risk facing legal consequences.
Hayes and Matsumoto now claim they face being axed from the project, leaving them at risk of losing ‘millions of dollars in economic entitlements.’
The suit accuses Ohtani and Balelo of tortious interference and unjust enrichment. They are suing for unspecified damages.
Hayes, a seasoned developer with four decades in the industry, and Matsumoto, intended to be the listing agent for homes averaging $17.3 million each, also claim that Ohtani and Balelo attempted to sabotage their stake in another nearby development.
‘This case is about abuse of power,’ the lawsuit says. ‘Defendants used threats and baseless legal claims to force a business partner to betray its contractual obligations and strip Plaintiffs of the very project they conceived and built.
‘Defendants must be held accountable for their actions, not shielded by fame or behind-the-scenes agents acting with impunity. Plaintiffs bring this suit to expose Defendants´ misconduct and to ensure that the rules of contract, fair dealing, and accountability apply equally to all – celebrity or not.’
Investment materials for The Vista at Mauna Kea Resort, which had remained online on Monday night but appeared to have been removed by Tuesday morning, listed Hayes and Matsumoto as part of the management team, along with Kingsbarn.
The website called Ohtani ‘Japan’s Babe Ruth’ and the ‘1st Resident,’ giving him top billing ahead of the iconic Mauna Kea Resort, ‘one of the most celebrated hotels in Hawaii,’ Hapuna Beach, ‘rated the #1 beach in America by Conde Nast Traveler’ and two golf courses – one designed by Arnold Palmer, the other by Robert Trent Jones Sr.
Real estate moguls Kevin J. Hayes Sr. (R) and Tomoko Matsumoto (L) filed the lawsuit last week
Ohtani had been brought onboard to promote the luxury housing project on the Big Island
‘Ohtani will act as the celebrity spokesperson for the project and has committed to purchasing one of the 14 residences within the project,’ the brochure says. ‘He also intends to spend significant time at The Vista in the off-season and will construct a small hitting and pitching facility for preseason training.’
The suit says the developers spent 11 years working on the deal and ‘as part of a bold marketing strategy’ signed an endorsement deal in 2023 with Ohtani, ‘one of the most high-profile endorsements imaginable.’
‘This partnership with Ohtani will elevate the demand and create buzz within the Japanese luxury vacation home market, which is a primary target audience for the project,’ the investment brochure said. ‘We see Shohei Ohtani´s homeownership as having a significant impact on the global exposure of the project and expect to accelerate the pace of sales, thereby helping us achieve our pricing objectives.’
The suit said Balelo ‘quickly became a disruptive force,’ threatening to pull Ohtani from the deal if concessions weren’t made.
‘Kingsbarn began capitulating to Balelo´s every whim,’ the suit said. ‘Over time, it became increasingly obvious that Kingsbarn was more concerned about preserving its relationship with (Ohtani) than honoring its obligations to its business partners.’
Last month, in what the suit called ‘a coordinated ambush,’ Kingsbarn fired Hayes and Matsumoto.
‘Kingsbarn openly admitted during the call that Balelo had demanded the terminations and that they were being done solely to placate him,’ the suit said. ‘Plaintiffs stand to lose millions of dollars in compensation tied to projected homebuilding profit, construction management fees, and broker commissions.’
The lawsuit isn’t the first legal storm that Ohtani has found himself embroiled in over the past two years.
Ohtani’s ex-interpreter Ippei Mizuhara pleaded guilty to stealing $17m from the MLB star
Mizuhara arrives for his sentencing at the Ronald Reagan Federal Building in California
In February, Ohtani’s ex-interpreter Ippei Mizuhara was sentenced to 57 months in a California prison after pleading guilty to bank and tax fraud.
Mizuhara exploited the Japanese-English language barrier to isolate Ohtani and profit from his proximity to the two-way player’s power, stealing around $17million for the Los Angeles Dodgers star to repay gambling debts.
Although Mizuhara moved from the Angels to the Dodgers when Ohtani signed his record $700 million free-agent deal before the 2024 season, he was quickly fired in early 2024 as his deception was revealed.
Federal investigators believe Mizuhara won $142 million across 19,000 wagers between September of 2021 and January of 2024. However, those winnings were deposited into his own account, while Mizuhara used Ohtani’s to cover his losses, which totaled around $183 million – a difference of $41 million.
Mizuhara worked with several bookmakers and actually impersonated Ohtani in calls to Dodgers star’s bank, as revealed by the federal probe.
Investigators did not find any evidence Mizuhara wagered on baseball, nor could they prove that Ohtani was even aware of the theft, much less the gambling.
Balelo, meanwhile, is a former minor league player who saw his hopes of making it to the majors crushed by a construction-site accident in 1987.
He has gone on to become a super sports agent, representing four of MLB’s top players; Sandy Alcantara, Marcell Ozuna, Jean Segura and, most important of all, Ohtani.
