Ryu Hyun-jin’s return to Hanwha 17 billion won is the decisive hit? Finally, he is trimming the salary cap… How much time will he have

Even if it slightly surpassed Yang Eui-ji’s (Doosan), the highest amount ever recorded, Hanwha had to exhaust the salary cap of more than 4 billion won (approx. As of 2023, Hanwha’s total salary of the top 40 players amounted to 8.53 billion won (approx. The salary cap in the league was second only to Kiwoom (approx. However, if Ryu Hyun-jin was recruited after Ahn Chi-hong, the salary cap was about to explode. The first violation of the system was to occur since the introduction of the system.

As a result, various speculations have been raised in the industry, such as, “The salary will be paid in 2024, and the salary cap system will be reset starting in 2025 after violating only the year 2024,” and “The salary cap system will be changed for now.” Hanwha has developed a clever strategy. Instead of guaranteeing 17 billion won (approx. 17 billion won), the contract period will be extended to eight years, and an undisclosed opt-out clause has been included to avoid violation of the salary cap. Some say that it was a trick, but others say that it was an inevitable choice.

Ryu’s return is expected to spark re-discussion on the salary cap. Many teams have already suggested revising the salary cap regulations. Some clubs reportedly have the opinion that it is better to abolish the system. However, they were changing their strategy to revise the system, blocked by some clubs’ opposition that the system would be implemented for three years after the system was introduced, but it was not abolished.

The pros and cons of revising the salary cap system were constantly divided. Clubs that could not afford to pay salary cap constantly demanded revision. On the contrary, clubs that could afford to pay salary cap insisted on adhering to the existing system. In other words, the management also changed depending on the situation of the salary cap of the club concerned. “Some clubs did not clearly express their intention, but Kiwoom and Hanwha said they should implement the system for at least three years,” an official said. However, Hanwha is also on fire. Major watchers say that Hanwha may also lean toward revision.

“Wouldn’t Hanwha turn to favoring the amendment now?” a team leader said. “It’s not the nuance of sticking to the amendment. I felt open to the amendment.” Some predict that a new management plan will come out soon, as there is no team to oppose the amendment even though it may be abolished. Among the clubs, the view that “an amendment will come out within the first half of the year” is gaining popularity.

KBO and its 10 clubs are applying the salary cap system from 2023 to level the league and continue to develop. The club has decided to apply 120 percent of the annual average amount, which is a sum of the top 40 players’ annual salary in 2021 and 2022, and according to this standard, 11.42 billion won (10.43 million U.S. dollars) will be set for 2023. If the salary cap is exceeded, 50 percent of the excess amount will be paid as a sanction, and if the salary cap is exceeded for two consecutive times, the penalty of 100 percent of the excess amount and the club’s right to nominate a rookie in the next year’s first round will fall by as much as nine notches. All clubs have a strategy to avoid exceeding the salary cap for two consecutive times due to the issue of the nomination.

Correction seems to be an inevitable trend now. Then, the key is how to change it. Some teams have suggested that franchise stars be excluded from the salary cap calculation. The NBA’s Larry Bird Rule was used in reference to this rule. Some teams are proposing to raise the bar for salary cap in line with inflation. Currently, the figure stands at 120 percent. As the figure is increased, more leeway will be secured.

BY: 스포츠토토

Related Posts

Universal Turns To Profits In 2022 As Okada Manila Rev Doubles

Japan’s Universal Entertainment, the founding parent of Okada Manila Casino Resort in the Philippines, posted a net profit of nearly 11.51 billion yen ($86.6 million) for all of…

IR-backing Osaka governor re-elected, share of vote up

Hirofumi Yoshimura, the head of the Osaka Innovation party, was re-elected on Sunday as governor of Osaka prefecture, and with a 9.3 percentage-point increase in his share of…

Earth Day celebration to kick off at Gwanghwamun Square on Saturday

To mark Earth Day, the Seoul Metropolitan Government and the city’s Green Citizen Committee are hosting a commemorative event at Gwanghwamun Square on Saturday.Earth Day, an annual event…

How much in subsidies will Samsung Electronics get for US chip plant?

Samsung Electronics is expected to receive more than $6 billion in subsidies from the U.S. government for its semiconductor investments in the country, marking its entry into the…

Bank deposits diminish as stock, crypto markets grow

Nearly 15 trillion won ($11.06 billion) was withdrawn from fixed-term deposit accounts and installment savings accounts at five major commercial banks in Korea in the past month, according…

Hotel Shilla CEO signs block deal to pay inheritance tax

Hotel Shilla CEO Lee Boo-jin, the daughter of late former Samsung Group Chairman Lee Kun-hee, is seeking to sell over 5.2 million Samsung Electronics shares in an after-hours…

Leave a Reply

Your email address will not be published. Required fields are marked *