A short time ago, rumors surfaced that the LEC was looking into ways to implement a salary cap in the league. At the time, they were simply rumors. However, it has been confirmed that the LEC will impose a salary cap next season.
The salary cap for the 2024 LEC season
As mentioned above, the LEC has officially announced a salary cap for the upcoming season. It is important to note that this new league measure will go into effect very soon. Now, with this salary cap regulation, all teams that belong to the LEC will be restricted in the amount they can pay their players.
According to the information, the Sports Financial Regulations, better known as SFR, will come into effect at the beginning of the 2024 season. With this new salary cap system, teams must “keep the total sum of salaries paid to the five players within a certain range.”
It is important to note that with the LEC’s new SFR system, not only will there be a higher range, but there will also be a lower range. There is a minimum salary that teams must receive to compete. The lower spending threshold must equal 50% of the highest SFR range.
Nevertheless, different factors will be considered in determining the SFR threshold. Market indicators include the salaries of LEC players. In addition, a background of league revenues in the current year and financial information of the teams, among other factors, are included.
#LEC introduces Sporting Financial Regulations (SFR)
Read: https://t.co/tYS7efoVv4 pic.twitter.com/QHW86xpqn9
— LEC (@LEC) September 28, 2023
LEC Salary Cap Details
Now, if a team is over the salary cap or below, it must pay a tax. Organizations outside the ranges will be required to pay an additional SFR fee. If an organization exceeds the salary cap with the sum of the salaries of the five players, it will have to pay the league a fee equal to 50% of the excess. On the other hand, if the sum of all player salaries exceeds 150% of the salary cap, organizations must pay 100% of the excess to the league.
It is important to note that Riot Games will not be the only one to have access to the taxes paid by the organizations. LEC teams that reach both salary caps will receive a portion of the 50% paid by the teams. At the same time, the other 50% will be distributed among the tier-two teams in the EMEA League.
Last, there will be some cases where exceptions can be made. For example, if a player joins the team before or during the finals of the 2023 LEC season, “the SFR expense will be reduced by one-fifth of the SFR threshold or the actual salary amount, whichever value is lower will be taken.” Finally, this new LEC global salary regulation for the 2024 season is effective November 21, 2023.