Will the salary cap system be revised?
The KBO announced on the 20th the total amount of the top 40 salaries for each club in 2023. This is the salary cap amount. The KBO introduced the salary cap system in 2023 to level the playing field and ensure the league’s continued development. The salary cap was set at 11.426 billion won ($11.263 billion), which is 120% of the average annual salary of each team in 2021-2022, based on the sum of the top 40 salaries of each team’s players (excluding foreign players and rookies), including salaries, option payments, and average annual contracts for free agents. No team exceeded the salary cap this year. Doosan recorded the highest amount among the 10 teams with 11.081 billion won. This was followed by SSG with KRW 10.846 billion, LG with KRW 10.795 billion, Lotte with KRW 10.466 billion, Samsung with KRW 10.4073 billion, and NC with KRW 10.8812 billion.
Five teams exceeded the 90% salary cap exhaustion rate, including Doosan, SSG, LG, Lotte, and Samsung. Doosan, SSG, and LG exceeded 95%. They only have between 200 million and 600 million won to spare. Kiwoom, on the other hand, 바카라사이트 has the smallest amount at 6.452 billion won. Hanwha is second with 8.531 billion won, followed by KT with 9.483 billion won.
The salary cap, set at 11.4268 billion won, will remain in place for three years, from the 2023 season to the 2025 season
After that, the salary cap will be discussed again, taking into account the inflation rate.
Five teams have less than $1 billion in salary cap space. Immediately, these teams are at risk of exceeding the salary cap for the 2024 season. Korean Series champion LG is poised to go over the salary cap next year. LG is set to sign free agents Im Chan-gyu, Ham Deok-joo, Kim Min-sung, and Oh Ji-hwan.
If you sign a player over the salary cap, you will have to pay a penalty of 50% of the overage for the first time. For the second consecutive time, the team will pay 100% of the overage as a sanction, and the team’s first-round pick in the following year will be reduced by nine spots. For the third consecutive year, you will be required to pay a penalty of 150% of the excess, and your first-round pick for the following year will be reduced by 9 spots.
The salary cap system was implemented for the first time this year, and there are already calls for its revision. When we voted three years ago, we thought there would be plenty of room in the salary cap, but as clubs strengthened, the price of free agents skyrocketed, and many clubs approached the salary cap after just one year of implementation.
The majority of the 10 clubs are in favor of modifying the system.
Three clubs believe that the current system should remain in place for three years. In the run-up to the salary cap, clubs have steadily adjusted their team salaries by signing free agents and multi-year contracts, but now that they have increased their team salaries by making bold free agent investments, they are calling for changes or even abolition in just one year. If the system is changed after just one year, there will be an equity issue where the clubs that have followed the rules will lose out.
The salary cap reform, which has been talked about since the end of the season in general managers’ meetings, didn’t materialize until December. When the KBO announced the salary cap amounts for each of the 10 clubs this season, 먹튀검증 the exact situation was revealed. A full-scale discussion is expected to take place at the executive committee meeting next January.