Following the trend of other Major leagues, the LEC announced that it will adopt the Salary Cap Policy for 2024. The goal is to support the long-term financial stability and competitive balance of the league.
How the LEC salary cap will work
In the new Salary Cap Policy announced by the LEC, teams are encouraged to keep the sum of the salaries of the five highest-paid players below a certain threshold.
Teams that exceed this limit will have to pay an additional fee. This rate includes an upper spending limit (SFR Limit) and a lower limit (SFR Floor), with the floor being equivalent to 50% of the limit.
If the sum of the salaries of the five players on a team exceeds this established limit (SRF), the team in question will pay a fee in the amount of 50% of what has exceeded the amount. If the sum exceeds 150% of the SFR Limit, the rate increases to 100% of the excess.
But what happens with the amount paid in fees?
According to Riot, the entire amount collected from fees will be divided as follows:
- 50% of the fees will be distributed to LEC teams that comply with the salary cap rules, both the cap and the salary floor.
- The remaining 50% will be used to support the EMEA second division.
When does the LEC 2024 salary cap come into effect?
The new Salary Cap Policy will come into effect on November 21, 2023, and the first cycle runs until November 18, 2024. After that, Riot can maintain the system, make adjustments or even remodel it, if necessary. necessary.
Players who signed a contract for 2024 before or during the LEC 2023 final will be subject to an exception and, in this case, the limit values will be reduced.
Now, only the LCS does not have a salary cap among the Major leagues
With the adoption of the new policy, the LCS (North American league) is the only one among the Major League of Legends leagues to not adopt the Salary Cap. In 2021, LPL pioneered the initiative. This year, the LCK also announced that it will adopt the Salary Cap and now the LEC will also use the system.
This leads the community to criticize the LCS ecosystem, mainly because the league is going through a period of restructuring and, historically, has always been known for having very high investments to bring or keep players.
It is worth remembering that TSM recently announced its departure from the LCS. The organization is one of the most popular in the world and has been in the tournament since its creation.
published in September 28, 2023