The Mexican Baseball League Approves Sports Reform

The Assembly of the Mexican Baseball League (LMB), composed of the 18 clubs that make up the league, has approved a sports reform with the following objectives:

• Promote the development of Mexican talent by promoting players born in Mexico.
• Foster balance and competition among all teams.
• Increase the quality of the show on the field.
• Strengthen the Mexican Baseball Teams.

The three measures contemplated in this sports reform are:

1.- Changes in the composition of each club.

Starting in 2024 and 2025, each team must have a minimum of 18 players born in Mexico on their 38-player roster.

In 2026 and 2027, each club must have a minimum of 20 players born in Mexico on their 38-player roster.

In 2028 and 2029, each club will have a minimum of 22 players born in Mexico on their 38-player roster.

This encourages teams to continue their efforts to develop Mexican baseball players; although players may carry out immigration procedures, either to naturalize or to claim Mexican nationality, for the purposes of the LMB regulations they will be registered in the category of non-Mexican born players.

The rule will remain in effect for the roster to grow to 32 players, as long as slots 31 and 32 are rookies, within the categorization regulations of the LMB and born in Mexico, creating conditions that favor the export of Mexican talent to international leagues and strengthening the integration of Mexican Baseball Teams.

This rule was successful in 2023, as 72 Mexican players made their debut in the league.

2.- Collective salary cap.

A collective salary cap per club was approved, which will be evaluated based on competitive balance with certainty of growth in the show and economic conditions that allow continuous improvement.

This salary cap will only apply to players registered on the 38-player roster and may be audited, and if necessary, sanctioned, by the LMB.

3.- Luxury tax.

In order not to limit growth, show, and contractual conditions, the luxury tax was approved. This applies in case a club exceeds the collective salary cap established as a threshold in the payroll of its players.

The luxury tax is also known as the competitive balance tax and is a financial measure implemented to promote competitive parity among teams and limit excessive spending by certain franchises with large budgets.

Its main objective is to prevent teams with more financial resources from accumulating talent disproportionately, which could unbalance the league and affect competitiveness.

The luxury tax operates as a progressive tax on a team's payroll that exceeds the collective salary cap approved in the sports reform. If a team exceeds that threshold or cap, it must pay an additional amount of tax.

In conclusion, Horacio de la Vega Flores, Executive President of the LMB, states:

"With these three measures approved in the LMB Assembly, we are firmly and determinedly heading towards better governance of the LMB in order to achieve the proposed objectives: competition and the development of Mexican talent are encouraged in the short, medium, and long term."

"This sports reform is unprecedented, it will generate a balance in the level of competitiveness of the league, and it is an integral part of the continuous improvement projects of our institution."