The Miami Marlins Sign Hector Noesi

The Miami Marlins signed Hector Noesi to a minor league contract which will pay him $800,000 for major league service time.  Noesi presumably will earn an invitation to major league Spring Training.

Noesi made a reported $1.7M to play in the KBO last season.  While he would have had to take a major pay cut to stay in the KBO, after a season in which he posted a 4.60 ERA, that probably wasn’t the reason he didn’t return to the KBO.  After the fine KBO seasons he had in 2016 and 2017, he probably could have found another KBO team to sign him in the $800K to $1M range.

Instead, South Korea recently changed its tax policies for foreign athletes and applied the changes retro-actively specifically because numerous foreign athletes weren’t paying up their taxes.  The changes don’t affect American citizen athletes nearly as much as players from the Caribbean, because the U.S. and South Korea have an existing tax treaty which makes the changes less onerous for U.S. citizen foreigners.

Noesi is from the Dominican Republic, however, and by some reports, had he stayed for another season in the KBO in 2019, he would have had to pay essentially his entire 2019 salary in taxes, current and past.  This tax law change also explains why fellow Dominican Henry Sosa will be pitching in Taiwan’s CPBL in 2019 for a lot less money than he made in the KBO in 2018, in spite of having one of his finest KBO seasons in terms of ERA and strikeouts.

Nine Caribbean-origin ballplayers were included in the 30 foreign players who started the 2018 KBO season (Mel Rojas Jr. is the son of Dominican Mel Rojas, but Jr. was born in Indianapolis and is thus a U.S. citizen by birth).  Only one of those nine is returning to the KBO in 2019, although there are numerous Caribbean-origin players who will be KBO rookies in 2019.  Of course, KBO rookies can’t be required to pay back-taxes they haven’t accrued.

I’m a little surprised, given Noesi’s fairly extensive MLB track record, that he’ll only be paid $800K for major league service time.  Jon Heyman tweeted that the deal involves many incentives, and I would guess it may pay Noesi relatively well ($250K to $300K for minor league service time).

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Explore posts in the same categories: Baseball Abroad, CPBL, KBO, Miami Marlins

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