Federal authorities are investigating a youth baseball company owned by the MLB Players Association, ESPN reported on Thursday.

The company, named Players Way, was founded by the MLBPA in 2019. In a statement to ESPN, MLBPA executive director Tony Clark said the aim of the company "isn't to become just another cog in the youth sports machinery, putting profits over players. It aims higher: to meet players where they are, teach the game the right way, and to foster lifelong lessons creating lifelong fans."

The federal investigation was launched by an anonymous whistleblower complaint in which Players Way was cited. According to ESPN the complaint accused director Clark of "self-dealing, misuse of resources and abuse of power at the union," and of nepotism in regards to his dealings with Players Way. Additionally, sources told ESPN investigators were asking about "whistleblower allegations of excessive union spending on international and domestic trips for Clark and other senior union executives."

The MLBPA decried the allegations as "without merit" and Clark, who has not been charged with a crime, denied them and said they are "baseless" in a statement to ESPN.

ESPN reports the events Players Way puts on are few and sparsely attended. Consequentially the company has generated "barely six figures in revenue" since its founding. The union has invested $3.9 million into the company, according to the MLBPA's public documents, but the union declined to explain how that money was spent. ESPN further reports the true number is closer to $10 million, and that those funds "largely paid the six-figure annual salaries of its executives and consultants," which include "a handful of former major leaguers, some of whom were simultaneously working other full-time jobs outside the union."

Multiple former union officials said Players Way operates with "no standard accounting practices" and "no annual budget circulated among senior finance officials." Clark was idenitifed as the driving force behind the union's involvement with the company, but a former official said there were no events, actitivies, or partnerships with other youth baseball companies. ESPN sources said Players Way "appeared to be a landing spot for Clark's loyalists," and few players in the union knew about it.

Federal investigators declined to comment. ESPN reports this investigation is part of a larger inquiry into the MLBPA's financial dealings with another company called OneTeam Partners from last spring.