Kim Ha-sung’s team, who shouts and watches… But if you don’t win, will the release party begin?
San Diego signed right-hander Michael Waka on the 17th (Korean time) and strengthened the starting rotation again. 카지노 San Diego, which had been evaluated as having a rather weak starting lineup compared to its mighty batting ability, filled the position by recruiting veteran pitcher Waka instead of the trade market.
San Diego’s recruitment rush is surprising the entire major league. It’s not such a big franchise, but it’s because we’ve been making continuous investments for the last 3-4 years to challenge for the presidency. In terms of team salaries at the moment, San Diego is third in the major leagues after the New York Mets and New York Yankees. They spend more money than big franchise clubs like the Los Angeles Dodgers, Boston, San Francisco, Texas, and Chicago Cubs.
However, there is one thing San Diego wants to avoid, and that is the wealth tax (luxury tax). If the team’s annual salary exceeds a certain threshold ($ 273 million in 2023), a wealth tax must be paid according to a complex calculation formula. It may not matter if you pay for one season, but if you exceed this standard for 2-3 years in a row, the tax rate jumps so much that the ‘penalty’ you have to bear every year becomes bigger. So, most teams try not to exceed the wealth tax standard as much as possible, and even if it is passed, do not pass it consecutively.
San Diego is also using several methods to avoid passing the wealth tax. Darvish Yu, who recently signed a six-year contract extension for a total of $108 million, is a prime example. Darvish’s six-year, $126 million contract with the Chicago Cubs in 2018 ends this year. The wealth tax is based on an average annual amount. San Diego extended the duration of Darvish’s new contract, lowered the average annual amount from the previous contract, and managed the team’s annual salary under the wealth tax standard while acquiring Waka with the $3 million saved.
The exact amount will not be known until after the season, but local media see San Diego’s team salary as ‘nearly’ below the wealth tax standard. Dennis Lin, a reporter in charge of San Diego at the North American sports media ‘The Athletic’, also reported that the club officials confirmed that fact. He added that San Diego would still try to manage team salaries below the wealth tax threshold. This year, it is possible according to the will of the club, but the problem lies next.
Right now, when this season ends, it is highly likely that Manny Machado, the team’s main third baseman and clubhouse leader, will opt out (abandon remaining contracts and obtain free agency status). If so, he may have to pay Machado more than the annual salary he gives him now. Closer Josh Hader is also eligible for free agency after this season.
Crucially, after the 2024 season, one of the best players in the major leagues, Juan Soto, will be eligible for free agency. The prevailing forecast is that Soto’s contract value will exceed $400 million. If San Diego wants to catch Soto, it would be better to hurry up and push for an extension contract before entering the free agent market, but there are various complications in a situation where the team’s annual salary is already full.
If San Diego doesn’t win the championship they wanted within 1-2 years, the team’s salary will inevitably become a burden again, and in the end, there may be a release party where key players are inevitably caught. San Diego general manager AJ Preller is a character who has no hesitation in pressing the ‘reset button’ if he thinks it’s not going to work, and there was a case like that in San Diego in real life. It is noteworthy how San Diego’s team salary management strategy will flow.
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