I didn't know there'd be this much difference.. It's 8.1 billion won! LG exceeded 21%, and Kiwoom did not fill half of it
Dec 18, 2024
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KBO officially announced on the 18th that LG exceeded the upper limit of KRW 2429.78 million as a result of the total amount of the top 40 annual salaries for each club in 2024.
KBO has implemented a salary cap system since 2023 for upward leveling of league power and continuous development. This year, the name was changed to 'Competitive Equilibrium'. If you spend more than a certain amount on a player's ransom, you will pay 'Baseball Development Fund' for the excess. The purpose is to prevent rich teams from monopolizing expensive players.
KBO announced that it has applied a competitive equal tax cap of KRW 11.426.38 billion this season, which is 120% of the club's annual average, which is the sum of the top 40 players in each club's annual salary (annual salary, actual option payment, and the annual average down payment amount of FA among foreign players and rookie players) from 2021 to 2022.
LG's total amount of the top 40 players was 13.85616 billion won. It exceeded the upper limit of KRW 2429.78 million, which is about 21%.
For each club, KIA adjusted well within less than 10% of the upper limit, including 11.24 billion won, Doosan 11.19436 billion won, Samsung 11.18 billion won, Lotte 11.15 billion won, Hanwha 10.7 billion won, KT 10.51 billion won, and SSG 10.457 billion won.
NC was nearly 2 billion won less than 9.47 billion won.
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Coincidentally, NC and Kiwoom are 9th and 10th in the 2024 regular season rankings.
If the upper limit of the competitive equal tax is exceeded, an amount equal to 50% of the excess shall be paid to the baseball development fund. If it exceeds two consecutive times, 100% of the excess must be paid to the baseball development fund, and the right to nominate in the first round of the following year will fall by nine levels. In the case of exceeding three consecutive times, an amount equivalent to 150% of the excess must be paid to the Baseball Development Fund, and the right to nominate in the first round of the following year will fall by nine levels.
It is very similar to Major League Baseball's Comprehensive Balance Tax (CBT) system. In the case of Major League Baseball, it is more complicated, such as tax rates being applied differently depending on the amount of excess. In Major League Baseball, if it exceeds $40 million, the right to select the Rule 4 draft will be pushed back 10 steps.
dhhan@sportschosun.com
