We help pro sports teams mitigate the financial risk of athlete underperformance
How it works
A team acquires a player through a free agency signing or trade.
Reifi connects the team with an institutional investor and helps set a performance benchmark for the player.
The investor guarantees the financial value of that benchmark in exchange for a premium paid by the team.
If the player underperforms, the investor compensates the team an amount that scales with the degree of underperformance.
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Read more »How teams are compensated
Reifi contracts for MLB players are based on the Wins Above Replacement (WAR) a player accumulates during a season. Teams use Reifi's exchange to receive quotes from participating financial institutions that include a WAR benchmark for the player and the premium to be paid at the beginning of the season.
Hypothetical MLB contract
Brandon Belt, 2022 Season
($18.4mm Qualifying Offer / 1 year)
First baseman Brandon Belt accepted a qualifying offer of $18.4 million for the 2022 season, and was projected by ZiPS to produce 2.2 WAR. The season proved a disappointing one for him, as he ended it with only 0.1 WAR.
The following shows the hypothetical outcome had Brandon's team entered into a Reifi contract based on his performance for that season.
Reifi contract details
Premium:
$3,120,644
Projected WAR:
2.2
WAR Benchmark:
0.86
Actual WAR:
0.1
Shortfall:
Value of 1 WAR:
$8,500,000
Gross Reimburs.:
$7,206,088
Net Reimburs.:
$4,085,444
Performance level outcomes
Reifi is not affiliated with or endorsed by Major League Baseball or any of its teams, affiliates, or players. The figures provided here are for illustrative purposes only and may not be reflective of the actual quotes provided.
How teams win
Hedge against underperformance
Unlike sports disability insurance, Reifi allows teams to hedge the financial risk of all forms of athlete underperformance, regardless of the cause.
Attract higher-caliber players
Reifi contracts reduce the risk of expensive players that don't pan out burning a hole in a team's payroll, allowing teams to sign larger contracts than they previously were able to before.
Recover faster from disappointing seasons
Reifi allows teams to recover expenditures when their players don't perform as expected. This way, teams can get back on track faster with increased flexibility to make roster changes or make up for revenue shortfalls in other areas.
How investors win
Net positive expected returns
Our financial model is designed to compensate investors for the financial service they provide to teams.
Increased portfolio diversification
Returns associated with Reifi contracts are based on an athlete's performance and therefore by nature are uncorrelated with those of traditional asset classes, providing a potential source of diversification for investors.
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Get free quotes for your athletes
Reifi can provide fast, no-commitment quotes for any player transactions you may be considering. Reach out to get started!
How we're different
Transparent pricing models
Reifi provides team with transparent pricing models to give them direct insight into how premiums are being calculated for their players, and allows them to see the impact changes in various drivers will have on their premiums and reimbursement schedule.
No exclusions
Reimbursements from Reifi policies are based on a single statistic, the calculation of which is agreed upon by all parties upfront. This way, there's no uncertainty or haggling around the triggers and amounts of any compensation paid to the team.
Reimbursements up to the full salary owed
Reifi policies can pay up to the full amount of the associated player's salary, based on the degree of underperformance.
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Reifi is not affiliated with or endorsed by Major League Baseball, the National Basketball Association, the National Hockey League, the National Football League, or Major League Soccer.
Reifi, Inc. operates the Reifisports.com website (the "Site") and is not a broker-dealer or investment advisor. No money or other consideration is being solicited, and if sent in response, it will not be accepted. No sales of securities will be made or commitment to purchase accepted until qualification of an offering circular by the Securities and Exchange Commission ("SEC"), which we urge prospective investors to read carefully at such time, and approval of any other required government or regulatory agency. An indication of interest made by a prospective investor is non-binding and involves no obligation or commitment of any kind. Any offer to buy securities may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance is given after the qualification date.
You should speak with your financial advisor, accountant, and/or attorney when evaluating any offering. Reifi does not make any recommendations or provide any advice about investments, and no communication, through this website or in any other medium should be construed as a recommendation for any security offered on or off this investment platform.
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