LCK imposes a salary cap for LoL teams

LCK imposes a salary cap for LoL teams

19. July 2023 by miranda angeles

Recently a new measure imposed by the LCK has been announced. This measure imposes a salary cap for LoL teams. If teams do not comply with this new measure, they must pay a “luxury tax.”

LCK imposes a salary cap for LoL teams

The LCK is establishing new regulations which directly relate to the salary of the players of each LoL team in the region. With this regulation, the LCK intends to establish a strict salary cap for the squads of the different teams. In addition, the team that does not comply with this regulation’s letter must pay a luxury fine. LCK officials have established this fine similar to those used in professional sports leagues such as the MLB or the NBA.

It is important to note that this new regulation will come into effect at the beginning of the 2023 off-season of the Korean LoL league. Specifically, the regulation is enacted after the World Championships, to be held in October.

Another interesting aspect of the new LCK salary cap regulation, it will not include substitute or bench players. Instead, it will be calculated based on the total compensation paid to the starting roster by each franchise in the League.

Terms of the LCK Salary Cap Regulations

There will be a lower and an upper limit in the LCK. It is set that organizations can pay up to 70% of the revenue earned by the team during 2022. However, a club must pay the luxury tax if it exceeds this limit. This tax will be paid to the teams that spent less than the established limit. However, teams must have exceeded the minimum salary limit to receive this part of the luxury tax.

On the other hand, it is important to note that each player has no salary cap. Rather, the team as a whole must stay within the 30% threshold when the five starting members of the squad are added together. However, depending on the personal success of each player at home and abroad, the LCK has created some specific bonuses.

If a player has won three prestigious international competitions, such as MSI and Worlds, or five or more LCK splits during his career, 50% of his earnings will be exempt from the limit. The only players currently meeting these conditions are Peanut from Gen.G and Fake from T1.

On the other hand, if a player has worn the jersey of an organization for more than three years, he will be exempt from the 30% salary. In that case, the players who comply are Gumayusi, Canyon, and Showmaker. However, if a player meets various conditions, the discount will range between 30%-40%.

According to the LCK, the new salary cap regulations are aimed at the sustainable growth of the teams.