CSL mulling introduction of salary cap

Plans are reportedly underway to introduce a salary cap to the Chinese Super League as authorities strive to improve its financial health.

In a meeting convened by the Chinese Football Association last week, executives from CSL and second-tier League One clubs discussed possible wage-control measures, including setting a spending ceiling of 75 percent of a club’s annual income, sina.com reported on Wednesday.

The exact percentage has yet to be finalized but the cap is expected to kick in from 2021, leaving clubs two seasons to prepare for the new rules, said Yuan Ye, a soccer commentator with Sina Sports.

“This is going to be a regulation that will raise both hands to support its implementation,” Yuan said.

“The investment in player salaries, especially the increasing sums paid for foreign imports, has been a serious issue for the league’s longterm development.”

The proposals are believed to be the result of pressure from the General Administration of Sport of China, the country’s top sports governing body, which last year urged clubs to get their finances in order.

A string of high-profile player transfers, including Shanghai SIPG’s $72 million signing of Brazilian midfielder Oscar from English Premier League side Chelsea in December 2016, and Argentine veteran Carlos Tevez’s reported $45 million annual salary with Shanghai Greenland Shenhua, had triggered concerns that CSL spending was getting out of hand.

The accounts of reigning CSL champion Guangzhou Evergrande are typical of the problem.

The two-time AFC Champions League winner’s latest financial report, published last month, showed it generated revenue of $83 million last season but was running a $155 million loss due to transfer fees and salaries.

Tan Jianxiang, a sports sociology professor with South China Normal University, said sports clubs here need tougher regulations to keep on a steadier financial footing.

“Although the league has independent operational rights, it’s necessary to have the administrative power to resolve some critical issues,” said Tan.

Some observers fear, however, that a salary cap could damage the CSL’s pulling power and result in a decline in popularity.