LG Confirms First Salary Cap Violation. Why?

The salary cap system has become a “hot potato” in just one year since its implementation. The LG Twins are expected to become the first team in the KBO league to surpass the cap on salary cap next year. In addition to the high salaries of existing players, the cap on salary cap is in danger due to FA contracts with Oh Ji-hwan and Lim Chan-kyu this winter. There are also remaining contracts with FA players Ham Deok-ju and Kim Min-sung.

KBO introduced salary cap system from 2023 for upward leveling of league power and continuous development. This is a soft salary cap with penalty and penalty for violation. The salary cap is 120 percent of the annual average of 10 clubs, which includes the sum of the top 40 players per team’s annual salary excluding foreign and rookie players, including actual salary, option payment, and FA annual average down payment, from 2021 to 2022. This cap will be maintained for three years from 2023 to 2025. Afterwards, the ceiling of salary cap will be re-discussed in consideration of inflation.

On the 20th, KBO announced the total amount of the top 40 annual salaries for each club in 2023, which will be applied to salary caps. No team exceeded the upper limit of salary caps. However, five teams have exhausted more than 95% of their salary caps. Doosan recorded the highest amount among the 10 teams with 11.18 billion won. SSG ranked second with 10.84647 billion won and LG with 10.797.5 billion won.

However, LG is highly likely to surpass the cap on salary caps for the 2024 season. LG sold out about 95 percent of salary caps this year, and the remaining amount was 628.88 million won approx.

Among LG’s top 40 players this year, Jin Hae-soo 250 million won, Seo Geon-chang 200 million won, Song Eun-beom 140 million won, Choi Dong-hwan 150 million won, Lee Chun-woong 80 million won, and Chung Ju-hyun 65 million won left the team due to trade, release, and second draft. The combined annual salary of the six players who left this year is 840 million won.

If Ko Woo-seok, who received an annual salary of 430 million won this year, advances to the Major League, he will have additional room. The combined total of the three is estimated to be about 1.9 billion won to 2 billion won, which is about the margin of next year’s salary cap.

LG announced two FA contracts on Monday. They are Oh Ji-hwan and Lim Chan-gyu. Oh Ji-hwan signed his second FA contract for up to 12.4 billion won down payment of 5 billion won, total annual salary of 5 billion won, option of 2.4 billion won for six years. First of all, Oh’s down payment for the FA was 400 million won until this year, but starting next year, his down payment for the FA will be included in the salary cap. He will increase by more than 400 million won. Oh’s annual salary was 600 million won this year. His annual salary next year will not decrease from 600 million won, but will increase even a little.

Lim signed a four-year contract worth up to 5 billion won 600 million won down payment, 2 billion won in total annual salary, 2.4 billion won in option. Lim’s annual salary was 170 million won 120,000 dollars this year. An annual average of 150 million won 120,000 dollars in down payment will be included in the salary cap. If the annual salary is 500 million won 420,000 dollars next year, the salary cap will increase by about 500 million won 420,000 dollars. An option of 600 million won 620,000 dollars is at stake every year, but if the half is paid, it will be 300 million won 320,000 dollars. The annual salary plus option will increase by at least 600 million won to 800 million won 820,000 dollars.

With the FA contract between Oh Ji-hwan and Lim Chan-gyu alone, the salary cap surplus of at least 1 billion won approx. In addition, the salary cap surplus of six new players will be included instead of the six players who are not included in the top 40 players’ annual salary. If the average is 100 million won approx.

In addition, there is an additional amount to the salary cap. As LG won the Korean Series title for the first time in 29 years, salaries of those who are eligible to renew their contracts will also increase significantly. Hong Chang-ki, who won two on-base percentage and two Golden Gloves, Shin Min-jae, who jumped to second base as a starting pitcher, Moon Bo-kyung, Moon Sung-joo, whose performance improves every year, and Yoo Young-chan, Baek Seung-hyun, Park Myung-geun, Lee Ji-gang, Choi Dong-hwan and Lee Woo-chan will also increase in the pitching staff.

Last year, LG ranked second in the regular season, with a total increase of 700 million won for 45 players excluding FA, foreign players, and rookie players. As LG won the overall title this year, there will be more players who will raise their money than those who cut their money.

In addition, there is still an FA contract between Ham Deok-ju and Kim Min-sung. Ham Deok-ju’s annual salary was 100 million won and Kim Min-sung’s salary was 180 million won this year. It is a given that exceeding the upper limit of salary cap is the key. If the salary cap is exceeded next year anyway, it is best to increase the salary cap amount by driving FA players’ annual salary next year.

This is because if you violate the salary cap for two consecutive years, the penalty will increase significantly. In the case of contracting in excess of the salary cap, if it exceeds one time, 50% of the excess must be paid as a sanction. If it is exceeded for two consecutive times, the amount equivalent to 100% of the excess must be paid as a sanction, and the right to nominate in the first round of the following year will decrease by nine levels. If it exceeds the limit for three consecutive times, the sanction must be paid for 150% of the excess, and the right to nominate in the first round of the following year will decrease by nine levels.

Regarding the salary cap system, Cha Myung-seok, the team’s general manager, said with a smile, “It is best not to pass the salary cap.” “If the team does not pass the salary cap by the way, we should not bring in a player. It is convenient if you think that the team does not get good results. However, because of the salary cap, we have to bring in good results. We have to attract players and invest in good places. 토토사이트
After five years of postseason, we ended up winning the championship. In the current structure of salary cap, if we hand over the cap, we have no choice but to pass it,” Cha said about the team’s payroll situation. “We are preparing so that we will not pass it twice in a row.”

Cha is determined to surpass the salary cap next year. Inevitably, he is preparing countermeasures in the direction of violating at least once. However, if he violates twice in a row, he will suffer losses in the rookie draft, so he plans to avoid it.

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