Two Hawaii-based real estate developers are suing Dodgers superstar Shohei Ohtani and his agent, Nez Balelo, claiming Balelo got them fired from a $240 million luxury housing project that was a decade-plus in the making.
The lawsuit claims that Balelo, employed by the Creative Arts Agency, conducted “a calculated and unlawful scheme” to interfere with the development, of which Ohtani was a public-facing sponsor. Ohtani purchased a $17 million home in the development, part of the Mauna Kea Resort.
Balelo and Ohtani allegedly violated the developer’s contractual rights by demanding concessions and with the subsequent firing of Kevin J. Hayes Sr. and Tomoko Matsumoto, according to the lawsuit. The claim was filed in Hawaii Circuit Court.
“This is just a very standard business dispute,” a person familiar with the defendant’s side of the case told The Athletic. They were not authorized to speak publicly on the matter, citing the litigation. “It’s sad that someone would unfairly attack innocent parties as a way of distracting from their own bad behavior.”
According to the complaint, Balelo issued an ultimatum to Kingsbarn Realty Capital LLC, the plaintiff’s business partner, demanding Hayes’ and Matsumoto’s removal from the project, or they’d face potential retaliatory litigation centered around a violation of Ohtani’s Name Image and Likeness rights.
Kingsbarn did not respond to a request for comment. Josh Schiller, head of sports and gaming at Boies Schiller Flexner LLP, which represents Hayes and Matsumoto, said they tried to negotiate a resolution privately with the defendants, but were unable to resolve the matter.
The plaintiffs claim that Balelo and Ohtani “exploited their celebrity leverage to destabilize and ultimately dismantle Plaintiff’s role in the project — for no other reason than their financial self-interest.” They’d been brought onto the project, according to the filing “solely for Ohtani’s promotional and branding value.”
Balelo, Schiller said, was the only person that his clients dealt with. Schiller said he did not know if Ohtani himself was aware of Balelo’s alleged actions, though he said they intend to investigate.
“The agent was doing business on his behalf, so he’s responsible for the agent ultimately,” Schiller told The Athletic.
Ohtani signed a 10-year, $700 million contract with the Dodgers in December 2023, and went on to win his third MVP and first World Series in Los Angeles last season.
According to Sportico, he will earn $100 million in endorsements in 2025 alone, tops among MLB players, with the next highest — Aaron Judge and Juan Soto — each earning $7 million.
The filing states that Hayes and Matsumoto conceived of the project in 2013, and that they were responsible for securing Ohtani’s endorsement deal in 2023. They made this investment “in hopes that Ohtani’s star power would attract other high-net-worth individuals to purchase properties.”
The plaintiffs allege that Balelo became “a destructive force” by inserting himself “into every aspect of the relationship.” They alleged that he responded to business matters with “stonewalling and hostility,” while threatening default if he didn’t get his way.
“Kingsbarn began capitulating to Balelo’s every whim,” the plaintiff’s lawyers wrote in the filing, noting that Hayes was essentially shut out of the project. On July 17, Hayes was removed as Managing Member and Matsumoto was fired as the listing broker, with Kingsbarn allegedly stating Balelo had demanded it.
Large portions of the lawsuit are redacted. The plaintiffs filed a subsequent request to lift the redactions from the initial complaint, stating they “pertain to information about the terms and conditions of certain contractual agreements” between Ohtani and the developers.
Ultimately, Schiller believes that Balelo’s alleged threats to counter-sue or default on the aforementioned contractual agreement were empty.
“I don’t think they have a basis for that,” Schiller said. “I don’t think they have a basis to do that. There is no NIL breach here; they can allege one occurred, but evidence will show that was manufactured.”
(Top photo of Ohtani and Balelo: Kirby Lee / Imagn Images)
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