Two Hawaii developers are suing Los Angeles Dodgers superstar Shohei Ohtani and his agent, claiming they were pushed out of a $240 million luxury resort project they spent over a decade building after bringing the baseball star on as celebrity endorser.
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Developer and Broker Sue Over Project Termination
Developer Kevin J. Hayes Sr. and real estate broker Tomoko Matsumoto lodged suit on 8 August in Hawaii Circuit Court. They named Ohtani and his agent Nez Balelo as defendants. Court documents from Reuters show Hayes and Matsumoto claim they were sacked from The Vista at Mauna Kea Resort after they brought Ohtani aboard as their endorser.
Hayes and Matsumoto had worked on the Hapuna Coast project for more than 11 years before they secured an endorsement agreement in early 2023. Fourteen custom homes valued at $17.3 million each were marketed to US and Japanese buyers. Ohtani was contracted as both spokesperson and the project’s first resident. According to the complaint, Balelo made increasing demands and threatened to withdraw Ohtani’s endorsement unless they agreed to various concessions.
Balelo then allegedly pressured their business partner, Kingsbarn Realty Capital, to terminate them entirely. “This case is about abuse of power,” the lawsuit states. Plaintiffs assert they face potential losses of millions in construction fees, broker commissions, and projected profits.
Defence Claims Unauthorised Use of Image Rights
Defence attorneys responded on 14 September by submitting a motion to dismiss the entire case. Their argument centres on accusations that the pair misused Ohtani’s name, image, and likeness without proper authorisation.
Attorney Laura Smolowe stated Hayes and Matsumoto “exploited Ohtani’s name and photograph to drum up traffic to a website that marketed plaintiffs’ own side project development.” Ohtani’s legal team maintains this violated his NIL rights and that Balelo fulfilled his duty to protect his client’s interests.
“Nez Balelo has always prioritized Shohei Ohtani’s best interests, including protecting his name, image, and likeness from unauthorized use. This frivolous lawsuit is a desperate attempt by plaintiffs to distract from their myriad of failures and blatant misappropriation of Mr. Ohtani’s rights.”
CAA Added as Defendant in Amended Filing
Hayes and Matsumoto brought an amended complaint on 30 September. Creative Artists Agency and CAA Sports were added as defendants. The Independent reports this version accuses them of deflection on cost overruns for Ohtani’s personal home construction. Josh Schiller, who represents the plaintiffs, disputed claims of NIL violations and argued that promotional materials for The Vista project were sent to Balelo and other Ohtani advisers before publication.
In their amended filing, plaintiffs assert that “Balelo and CAA sought to deflect blame by scapegoating Hayes for the cost overruns on Otani’s home, overruns caused entirely by defendants’ own decisions.”
Player Stays Focused Despite Court Noise
Reporters asked Ohtani about the lawsuit after a Dodgers defeat to the Angels in August. Ohtani kept his response brief. He spoke through his interpreter: “I want to focus on the field. Today, this team continued to lose, so I’d like the team as a whole to win a game quickly and try to win each and every game.”
Ohtani was previously named in court proceedings in 2024 when his former interpreter Ippei Mizuhara was sentenced to 57 months in prison for stealing $17 million to pay illegal gambling debts. Authorities cleared Ohtani of any wrongdoing in that matter, and he has continued to perform at an elite level throughout the case.
Expert Perspective on Case Complexity
Arash Sadat, an attorney at Mills Sadat Dowlat LLP who reviewed court documents, noted this type of dispute is more common than it might appear. “This kind of stuff happens all the time,” Sadat observed. “They’re not rare at all.”
Court filings leave unclear “what Shohei knew and didn’t know” about Balelo’s alleged interactions, Sadat pointed out. Most claims in the complaint target Balelo’s conduct rather than direct actions by Ohtani himself.
What Happens Next
Judge Jordan J. Kimura presides over the case in Hawaii’s First Circuit Court. No ruling has been issued yet on the motion to dismiss. Sportico’s case analysis notes that his attorneys have indicated plans for counterclaims if the dismissal motion fails. They would pursue claims for unauthorised use of his NIL rights.
If the case advances, Ohtani could be required to give a deposition to detail his knowledge of the alleged events. Such testimony might not become public given the extensive redactions in the original filing.
Financial stakes remain substantial. Hayes and Matsumoto cite potential losses in the millions from anticipated fees and commissions. Ohtani’s lawyers argue his commercial reputation and NIL rights have been compromised.
Kingsbarn Realty Capital has called the accusations “completely frivolous and without merit,” while Los Angeles has declined to comment. Ohtani earned an estimated $60 million in endorsements in 2024, Forbes reported. Newzire continues to follow this dispute alongside other high-profile athlete contract cases.
Implications for Athlete Endorsements
Los Angeles continues its pursuit of consecutive championships as their star player faces a dispute that could extend well into 2026 without a settlement.
At issue is whether Balelo’s actions to protect Ohtani’s NIL rights constitute tortious interference or legitimate advocacy. The court’s ruling on this question will establish precedent for how courts balance an agent’s protective duties against business partner expectations in celebrity endorsement deals, especially when unauthorised use of athlete likenesses is alleged in property marketing.
