Chinese Super League tightens salary and spending rules, warning clubs not to ‘test our determination’
- New policy aims to curb investment bubbles and applies to all – ‘no matter how big the club is or how famous the player is’
- Clubs face relegation and players a two-year ban if they forge contracts to get around wage limits
The Chinese Football Association has introduced its strictest financial measures yet with a new salary cap for domestic and foreign players throughout the professional game.
In the Chinese Super League, foreign player salaries are capped at €3 million (US$3.63 million) and domestic players at 5 million yuan (US$765,000) per year before tax, with salaries in China League One and Two a fraction of that.
“The policy aims to curb the investment bubbles in our leagues and promote the healthy and sustainable development of professional football,” the CFA said.
Further financial constraints were announced to limit the overall spending of clubs.
CSL clubs can spend no more than 600 million yuan (US$91.74 million) per year in total, with a €10 million (US$12.1 million) limit on foreign player salaries. For domestic players, clubs are expected to average an annual salary of no more than 3 million yuan (US$458,700) per player.
Clubs will be punished with points deductions for exceeding the 600 million yuan ceiling, ranging from six to 24 points, while players who are paid more than the cap will be ineligible to play.
Rival Chinese football fans unite against ‘neutral’ name rule
Furthermore, clubs face relegation and players face two-year bans if there is found to be forgery to circumvent the rules.
“No matter how big the club is or how famous the player is, we will strictly follow the regulations with no considerations,” CFA president Chen Xuyuan said. “Do not test our determination.”
Players are expected to sign new contracts following the cap’s introduction but there is leeway to allow for those whose current contracts are over the cap – such as Shanghai SIPG’s Oscar who is on a reported US$25 million per season – to reduce their salaries gradually over the next three years.
Image rights are not in the cap, it was reported, but are subject to CFA approval.
Xinhua reported that the average annual expenditure by CSL clubs in the 2018 season was 1.1 billion yuan (US$168 million), as per a CFA source.
The new policy is the latest in a number of financial regulations on Chinese football, replacing last year’s salary cap. In 2018, the CFA introduced a 100 per cent luxury tax on expensive foreign signings.
The day Chinese football dyed is no laughing matter
In addition, clubs are expected to drop any corporate sponsors from their names before the end of the year.
According to the latest iteration of that rule, only Dalian Pro and Shanghai Shenhua will be allowed to keep their current names, with Shenzhen FC’s English name but not its Chinese name also meeting the rule.
The “neutral” name policy has proved controversial with several supporters groups objecting to the CFA. That has so far been ignored.
“In the past, the club owners changed quickly in our leagues and therefore the club names also had to change. It was not helpful to cultivate a football culture in China,” Chen said.
“The clubs should consider the culture of local fans and the characteristics of cities when choosing new names,” he noted, adding that the CFA has established a task force, including fans, media and experts, to audit the clubs’ new names.
Chinese authorities have made it clear they want clubs to operate within their means and reiterated the point on Monday.
Chinese football clubs outspending some of sport’s grandest names
“CSL club expenditure is about 10 times higher than South Korea’s K-League and three times higher than Japan’s J-league. But our national team is lagging far behind. The bubbles not only affect the present of Chinese football, but also hurt its future,” Chen said.
