KBO Establishes Salary Cap on Foreign Players

The KBO will establish a salary cap on foreign players next year. The salary cap will be $1 million, which in addition to salary also includes the transfer fees the KBO club has to pay the major league club for his release. With the average salary of major league baseball players over $4 million and the minimum salary at $545,000, this will limit the quality of major leaguers looking to Korea as an option.

The good news for the foreign player is that the cap no longer applies if the club wants to re-sign the player. So the initial contract would be one year, but if the team wanted to re-sign the player there would be no limit. This re-signing would not apply if a team wanted to sign a foreign player released by another team.

If a KBO team attempts to circumvent the salary cap the punishment is the loss of a first round pick and a $887,000 fine. The player who signed the contract would be suspended for a year.

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