LEC has formally launched a wage cap to the competitors, limiting the quantity that groups pays in wages to gamers.
Following rumors on Sept. 27, the Sports activities Monetary Rules, or SFR in brief, will come into impact at the beginning of the 2024 season. With the SFR system, groups might want to “keep the whole sum of salaries paid to the highest 5 highest-paid gamers in a crew inside a sure vary,” the announcement reads.
There can be two thresholds in LEC’s SFR system—the higher (SFR Threshold) and the decrease (SFR Ground). The decrease spending threshold should quantity to 50 % of the SFR Threshold, that means there’s a minimal wage that squads have to be paid to compete.
Moreover, the SFR Threshold can be calculated on numerous issues. These embody LEC participant salaries, League Income Pool for the present and forecasted years, crew monetary information, and different market indicators.
If a crew surpasses the SFR Ground or SFR Threshold, they are going to be compelled to pay an extra SFR Price. There are two situations wherein the organizations will want to take action. Within the first one, if the sum of the highest 5 gamers’ salaries overtakes the SFR Threshold, the org might want to pay 50 % of the surplus to the League as an SFR Price.
Within the second occasion, if the sum exceeds 150 % of the Threshold, that org should pay 100% of that extra to the LEC.
These SFR Charges received’t be only for Riot to assert both. 50 % of it is going to be distributed to LEC groups that adjust to each Thresholds, whereas the remaining 50 % can be distributed to EMEA League groups in order that the tier-two ecosystem has higher assist.
Final however not least, there are additionally a couple of alternatives for exceptions. If a participant indicators a contract with the crew throughout or earlier than the 2023 LEC Season Finals, “the SFR Spend can be decreased by one-fifth of the SFR Threshold or the precise wage quantity; whichever is decrease.”
Guidelines will come into power on the 2024 LEC International Contract Begin Date, which is scheduled for Nov. 21, 2023.
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