New rules on spending and imports
CFA introduces new regulations on foreign players
“Our professional football has not been run in a sustainable way. If we don’t take timely action, I fear it will collapse” CFA chairman Chen Xuyuan
It wouldn’t be a new year without some new rules introduced by the Chinese Football Association (CFA) – although this time there is more support for the changes than has been the case in the past.
The big one is the introduction of a salary cap, but the number of foreign players allowed to sign and play for clubs has also been tweaked again, this time in an upwards direction. For the 2020 season, clubs can have six overseas players on their books, five in the matchday squad and four on the pitch at any given time – which is up from three last year.
This puts the Chinese Super League in line with much of Asia, though one of the spots is not reserved exclusively for an Asian player. According to the Chinese media, this means there will be more Asians – usually South Koreans, with a smattering of Uzbeks and Australians – on the shopping list of clubs as they are cheaper.
And price is going to be more of an issue for clubs as the authorities look to stop the financial losses and introduce some semblance of sustainability.
The huge spending spree that started in earnest back in 2011 – and brought in world-famous coaches such as Marcello Lippi, Felipe Scolari and Fabio Capello, along with top stars such as Paulinho, Carlos Tevez and Didier Drogba – has slowed in recent years. This is partly the result of a “transfer tax” that forced clubs buying a foreign player to pay the same amount as the transfer fee into a central pool.
There is no doubt that Beijing is concerned about the massive amounts of money leaving the country to line the pockets of clubs, players and agents around
Europe and South America. So the authorities are once again trying to limit spending, with CFA chairman Chen Xuyuan explaining: “Our clubs had too much money burned and our professional football has not been run in a sustainable way. If we don’t take timely action, I fear it will collapse.”
Starting with the 2020 season, Chinese Super League teams will not be able to spend more than 1.1billion yuan (€143million) a year or more than 60 per cent of their total outlay on salaries. At an individual level, for new signings in 2020 and beyond, domestic players can be paid, after tax, no more than 10m yuan (€1.3m), though national-team players can receive 20 per cent more. Foreigners will have a salary limit of around €3m a year.
The reaction so far has been fairly favourable as there was a growing concern at clubs, both big and small, that the spending was all a bit too much.
“Having a salary cap can help teams develop more sustainably,” says Li Ming, general manager of Beijing Guoan. “Regulations are necessary in a professional environment. The Chinese Football Association really values our opinions. They spent all day with us discussing how to make this new policy viable.”
With bonuses not yet covered in the cap, it remains to be seen how tightly these new stipulations are enforced. Chinese organisations and companies are adept at quickly finding out just how far rules can be pushed. And if there are big stars willing to come to
China, ways to make it happen may still be found.
These new cost-cutting rules are not just an end in themselves, designed to make clubs a little more financially responsible. Just as foreign players have commanded big salaries in recent years, the takehome pay of local talent has also risen dramatically. China has concluded that high domestic salaries are a barrier to exporting talent and it wants to follow in the footsteps of Australia, Korea and Japan and see its players in action all over the world. These three nations qualify for every World Cup and they are also the continent’s top exporter of players.
At the moment the best Chinese players are paid much more at home than they could ever earn elsewhere. As the country – which has only ever qualified for one World Cup and lost all three matches once there – is not exactly seen as a hotbed of talent, European clubs are not going to pay massive salaries to bring in little-known players from a country that consistently struggles on the international stage.
Wu Lei, whose recent goal for Espanyol against Barcelona was hailed by new national coach Li Tie as an honour for Chinese football, is the sole Chinese player operating in the big European leagues. But, according to reports in China, he took a pay cut of around 50 per cent to go to Spain.
Many of Wu’s compatriots may not want to make the same short-term financial sacrifice. However, if they are paid less at home then going overseas – and it does not have to be the top leagues of Europe, as authorities want to see Chinese players in action all over Asia – may become more attractive.