Dodgers star Shohei Ohtani and agent accused of sabotaging $240M Hawaii real estate deal

Key Points

• A lawsuit has been filed against Dodgers star Shohei Ohtani and his agent for allegedly sabotaging a $240 million real estate project in Hawaii, leading to the firing of involved developers.
• The lawsuit accuses Ohtani and agent Nez Balelo of tortious interference and unjust enrichment, claiming they exploited their celebrity status to destabilize the project for their own financial gain.
• Ohtani, who is nicknamed "Japan's Babe Ruth," was initially brought on as a celebrity spokesperson and was expected to significantly impact the project's sales within the Japanese luxury vacation home market.
• The plaintiffs allege that Balelo's demands led to their termination, which they argue was done solely to appease him, resulting in significant financial losses for their roles in the project.

A Hawaii real estate investor and broker are suing Shohei Ohtani, claiming the Los Angeles Dodgers star and his agent got them fired from a $240 million luxury housing development on the Big Island’s coveted Hapuna Coast that they brought him in to endorse.

According to the lawsuit filed in Hawaii Circuit Court on Friday, Ohtani’s agent, Nez Balelo, increasingly demanded concessions from developer Kevin J. Hayes Sr. and real estate broker Tomoko Matsumoto before demanding that their business partner, Kingsbarn Realty Capital, drop them from the deal.

“Balelo and (Ohtani), who were brought into the venture solely for (Ohtani's) promotional and branding value, exploited their celebrity leverage to destabilize and ultimately dismantle Plaintiffs’ role in the project — for no reason other than their own financial self-interest,” the lawsuit claims.

The suit accuses Ohtani and Balelo of tortious interference and unjust enrichment. Hayes, a developer with 40 years of experience, and Matsumoto, who was to be the listing agent for the houses averaging $17.3 million each, say that Ohtani and Balelo also tried to undermine their interests in a second, neighboring venture.

“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.”

A spokesman for Balelo’s agency, CAA Baseball, declined comment. In a statement emailed to The Associated Press on Tuesday, Kingsbarn called the allegations “completely frivolous and without merit.”

“Kingsbarn takes full responsibility for its actions regarding Kevin Hayes and for removing Tomoko Matsumoto as the project’s broker,” the company said.

Ohtani, 31, arrived from Japan in 2018 as perhaps the most heralded international star in baseball history, with an ability to both pitch and hit that made him doubly valuable to his team. A five-time All-Star and three-time Most Valuable Player, he signed a record 10-year, $700-million contract with the Dodgers before last season and helped the team win the 2024 World Series.

Investment materials for The Vista at Mauna Kea Resort, which remained online on Monday night, listed Hayes and Matsumoto as part of the management team, along with Kingsbarn. It 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.

“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.”

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