“It’s okay to exceed the upper limit.” KBO salary cap trick

The Korea Baseball Organization (KBO) announced the total amount of the top 40 annual salaries for each club in 2023 on the 20th.

Earlier, KBO introduced the salary cap system through an agreement with 10 teams, and as a result, the salary cap was set at 11.4 billion won (120 percent), or the average annual salary of the top 40 players (annual salary, option actual payment, and FA annual down payment among the players of each club excluding foreign players and rookies), between 2021 and 2022. The amount will continue through 2025.헤라카지노

For now, no club has exceeded the salary cap ceiling this season. Doosan had the largest annual salary expenditure this season, spending 11.18 billion won, just 244.63 million won short of the upper limit.

The team that had the least annual salary was Kiwoom. Kiwoom’s annual salary for this season was 6.452 billion won, a whopping 4.97438 billion won short of the upper limit.

No club exceeded the salary cap this season, but the situation could change next season. For now, the amount of money compared to the upper limit of five clubs, half of the total teams, was less than 1 billion won, so there are observations that some teams may exceed it after the 2024 season.

LG is a representative team. LG ranked third in this category after Doosan and SSG, spending 10.79 billion won (approx. 628.88 million won) short of the upper limit for this season.

It is inevitable to raise the salaries of the existing financially weak as they won the integrated championship this season in a situation where they already have no extra money. FA players who need to catch up on this are also lined up, so they cannot avoid exceeding salary caps.

The problem is that even if the salary cap is exceeded, the level of sanctions against it is not very high.

The KBO said that if a club exceeds one inning, it has to pay 50 percent of the excess as a penalty. If a certain club exceeds 1 billion won from the salary cap of 11.4 billion won (14.38 million dollars), it will pay 50 percent, or 500 million won, in the form of a fine.

If the team is calculated to hand over the salary cap, it can take the attitude of “paying sanctions” because it was accompanied by a large investment.

If the player exceeds the limit for two consecutive times, he or she will be paid 100% of the excess amount as a sanction, and his or her right to select the first round will be reduced by nine notches next year. The right to select a rookie draft is a matter that depends on the future of the club and must be dealt with very seriously.

However, this can also be avoided through trickery. KBO placed the precondition of “continuous” for the second and third violations. In other words, even if the salary cap is violated in 2024 season, it will be “reset” if it does not exceed the cap in 2025 season. And even if the salary cap is exceeded again in 2026 season, the first violation will be applied to protect the right to nominate a rookie.

Since KBO’s salary cap system does not apply to the AAV (annual average amount) method of Major League luxury tax, multi-year contract players such as FA can avoid salary cap regulations if they set their annual salaries differently every year. Kim Kwang-hyun, who returned to SSG last year and signed a multi-year contract of 15.1 billion won for four years, received 8.1 billion won in annual salary in 2022, is a case in point.

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