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Competitive Balance Tax

All articles tagged with #competitive balance tax

sports1 year ago

Nationals Secure Top Pick in 2025 MLB Draft Lottery

The Washington Nationals secured the No. 1 pick in the 2025 MLB Draft through the league's Draft Lottery, marking their first top pick since 2010. The lottery system, introduced to discourage tanking, determines the top six picks, with the remaining order based on team standings. The Dodgers, Mets, and Yankees face penalties, having their first-round picks moved back 10 spots due to exceeding the competitive balance tax threshold. The draft order for subsequent rounds will follow the reverse order of the 2024 standings.

via CBS Sports|
#2025-mlb-draft#competitive-balance-tax#draft-lottery
sports2 years ago

Shohei Ohtani's Contract Decision: Insights and Influences

Shohei Ohtani, the newly signed member of the Los Angeles Dodgers, elected to have historic contract deferrals in order to help the team sign better players and create a stronger team. By deferring 97 percent of his salary, Ohtani's annual value for luxury-tax purposes is expected to be around $48 million. This move allows the Dodgers to have more spending flexibility and avoid significant competitive balance tax penalties. Ohtani's endorsement contracts may offset much of his deferred salary, making him a unique player with a contract structured in a special manner.

via Dodgers Nation|
#competitive-balance-tax#contract-deferrals#los-angeles-dodgers
esports2 years ago

US Government Settles Lawsuit with Activision Over Esports Salary Suppression

The US Department of Justice has accused Activision Blizzard of underpaying esports players by imposing a "Competitive Balance Tax" that suppressed player compensation and limited competition between teams. The tax was signed off by both Activision and each team in their Call of Duty and Overwatch esports leagues. Activision has settled with the government, saying the tax was never levied and the leagues voluntarily dropped it from their rules in 2021. The company believes the tax was lawful and did not adversely impact player salaries.

via Kotaku|
#activision-blizzard#competitive-balance-tax#department-of-justice
esports2 years ago

Activision settles DOJ lawsuit over esports salary suppression.

Activision Blizzard settles with the US Department of Justice over claims that it instituted an anti-competitive salary cap for players in its Call of Duty and Overwatch esports leagues. The cap, called the Competitive Balance Tax, was used to prevent richer teams from outbidding others for the best talent, but in practice, it deflated wages for all players. Activision Blizzard has agreed to a consent decree that prohibits it from imposing any kind of tax or salary cap in the future. The settlement comes as the publisher faces accusations of anti-competitive behavior amid its pending acquisition by Microsoft.

via The Verge|
#activision-blizzard#anti-competitive-behavior#competitive-balance-tax
business2 years ago

US Justice Department Takes Action Against Activision Blizzard's Suppression of Esports Player Compensation.

The US Justice Department has filed a civil antitrust lawsuit against Activision Blizzard for imposing rules that limited competition for players in its Overwatch and Call of Duty professional esports leagues and suppressed the wages of esports players in these leagues in violation of the Sherman Act. The lawsuit alleges that Activision and independently-owned teams in each league implemented a Competitive Balance Tax to penalize teams if a team’s player compensation exceeded a threshold set by Activision. The proposed consent decree would prohibit Activision from imposing any rule that would limit player compensation in any of its professional esports leagues and require Activision to certify that it has ended all Competitive Balance Taxes in its professional esports leagues.

via Department of Justice|
#activision-blizzard#antitrust-lawsuit#business