'Shock' Salary Cap, Why Did It Exceed For The First Time...Seven FA players accounted for 10 billion won, and Cha Myung-seok, the general manager, said, "We didn't match it more than next year."
'Shock' Salary Cap, Why Did It Exceed For The First Time...Seven FA players accounted for 10 billion won, and Cha Myung-seok, the general manager, said, "We didn't match it more than next year."
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It was expected, but it is shocking. The LG Twins exceeded the salary cap (competitive uniformity). They became the first team to violate the salary cap in the KBO league. "We did not meet next year," said Cha Myung-seok, general manager of the team.
The KBO announced on the 18th the total salary of the top 40 players for each club in 2024. The KBO has introduced the salary cap system, which is the total salary cap, from 2023 for the sake of upgrading the league's power and sustainable development. The company applied the salary cap cap of 11.42 billion won, or 120 percent of the annual average of the club's top 40 players (salary, actual option payment, and average down payment for FA players) from 2021 to 2022, which is the sum of the annual salary of each club (excluding foreign and rookie players).스포츠토토
As a result of tallying the amount, LG's total amount of the top 40 players was 13.85616 billion won, exceeding the upper limit of the competition equal tax by 2.42 billion won. If the upper limit of the competition equal tax is exceeded, 50% of the excess must be paid to the baseball development fund. LG is required to pay 1.21 billion won, or 50% of the amount, to the baseball development fund.
LG was the only club that exceeded the salary cap. When looking at the salary cap of the other nine clubs, the KIA Tigers were the second highest with KRW 11.24 billion. The Doosan Bears ranked third with KRW 11.19436 billion, the Samsung Lions fourth with KRW 11.18 billion, and the Lotte Giants fifth with KRW 11.15 billion. The Hanwha Eagles recorded KRW 10.7 billion 10.46 billion, the KT Wiz 10.51 billion, the SSG Landers 10.457 billion, and the NC Diners recorded KRW 9.47 billion. The lowest-ranked Kiwoom Heroes recorded KRW 5.67 billion, which was less than 50% of the salary cap.
LG Electronics is determined to exceed the salary cap this year. "I was allowed to pass just once in order to win the championship," said Cha Myung-seok, the team's general manager.
In order to build a fighting spirit for the championship, the recruitment and signing of FA have skyrocketed in recent years. In the 2022 season, Kim Hyun-soo signed a contract for a maximum of 11.5 billion won for four plus two years. The initial contract period is 9 billion won (5 billion won in down payment, 4 billion won in annual salary), and if the team and the player achieve the mutually agreed option, the contract of 2.5 billion won for two years (2026-2027) will be automatically extended. Park Hae-min signed a four-year contract worth 6 billion won (3.2 billion won in down payment, 600 million won in annual salary, and 400 million won in option).
During the 2023 season, Park Dong-won signed a four-year contract worth 6.5 billion won (down payment of 2 billion won, annual salary of 4.5 billion won). Kim Jin-sung signed a two-year contract worth 700 million won (down payment of 300 million won, annual salary of 400 million won).
Prior to this season, Oh Ji-hwan made his second FA contract for up to 12.4 billion won (down payment of 5 billion won, annual salary of 5 billion won, option of 2.4 billion won) for six years. Lim Chan-kyu signed a four-year contract of up to 5 billion won (down payment of 600 million won, annual salary of 2 billion won, option of 2.4 billion won), and Ham Deok-joo signed a four-year contract of up to 3.8 billion won (down payment of 600 million won, annual salary of 1.4 billion won, option of 1.8 billion won).
The combined annual salary of the seven players and their annual average down payment amount amounts to 9.25 billion won (9.25 million U.S. dollars). The actual payment amount of the options of Lim Chan-kyu (option 600 million won), Oh Ji-hwan (option 400 million won), Park Hae-min (option 100 million won) and Ham Deok-ju (option 450 million won) amounts to over 10 billion won (approx.
What will happen to LG next year's salary cap? In order to strengthen the bullpen during the offseason, LG recruited Jang Hyun-sik as a four-year total of 5.2 billion won, and Kim Kang-ryul as a pitcher for up to 1.4 billion won (3+1) per year.
The cap on next year's salary cap has been adjusted. KBO held a board meeting in August to raise the cap on salary cap by 20 percent from the current 11.42 billion won to 13.7 billion won in 2025.
"We are renewing contracts with people who are eligible to renew their annual salary. We have set a new salary cap next year," Cha Myung-seok, the team's general manager, said. "We must not exceed the salary cap for the second consecutive year." It seems that the team has completed the adjustment to ensure that 13.7 billion won (10.7 million U.S. dollars) is not exceeded considering the amount of options.
If the upper limit of the equal competition tax is exceeded, an amount equivalent to 50% of the excess is paid to the baseball development fund. If it exceeds two times in a row, an amount equal to 100% of the excess is paid to the baseball development fund, and the right to nominate for the first round of the following year falls by 9 steps. If it exceeds three times in a row, an amount equal to 150% of the excess must be paid to the baseball development fund, and the right to nominate for the first round of the following year falls by 9 steps.
Money paid by the Baseball Development Fund is also a problem, but it is a big burden for the rookie draft pick to fall nine notches.