JINAN, Dec. 20 -- The Chinese Football Association (CFA) on Thursday announced a set of financial restraints to be imposed on clubs in the Chinese Super League (CSL) and lower professional leagues from 2019.
The measures come as transfer fees and salaries have skyrocketed in China in recent years, with the CFA aiming to curb overspending to promote a more sustainable development agenda. The regulations will apply to the CSL, China League One, and China League Two.
Under the new regulations, domestic players' salaries will be capped at 10 million RMB (about 1.45 million U.S. dollars) per annum, minus game bonuses. Players called up for the China national team for the 2019 Asian Cup or the qualifiers for the 2022 FIFA World Cup will be eligible for a 20 percent increase over the salary cap.
The plan will also reduce the salaries-to-expenses ratio of a CSL club to 65 percent in the 2019 season, 60 percent in 2020 and 55 percent in 2021. Salaries include expenses paid to all players in the first team and reserve team squads.
The salary cap will only apply to domestic players who signed a new contract recorded by the CFA from January 1, 2019. Those players will sign new contracts under the salary cap when their existing contracts expire, according to He Xi, director of the CFA's club licensing department.
The new rules will set limits on the amount of financial expense and deficit for each professional club over the coming three years. The total permitted expense for a top-flight club amounts to around 174 million U.S. dollars in 2019, and will decrease year by year to 130.5 million U.S. dollars in 2021. In the 2019 CSL season, the deficit cap will be set at 46.4 million U.S. dollars. Expenses related to youth development will be excluded from the club's total amount.
The new regulations also stipulate caps on cash injections from team owners, in order to reduce dependence on a parent company or a single shareholder. Every CSL club will be allowed to receive 94.2 million U.S. dollars in cash injections in 2019, with that amount decreasing year-on-year over the next three years.
The leagues will also introduce a cap on win bonuses in 2019, which will vary depending on whether the clubs are competing in the CSL or the Asian Champions League (ACL).
"Clubs that exceed the new caps will be subject to potential punishments, such as a restriction on the number of new transfers and points deductions," He Xi said.
In order to avoid the possibility of clubs circumventing the new restrictions, the CFA will also step up its crackdown on dual contracts and tax evasion, as well as closely monitoring lucrative endorsement deals. Clubs will not be allowed to pay their coaches and players through third-parties or in cash.
If a coach or player was found to have dual contracts, the club would face a points deduction or disqualification from the CSL. The coaches or players in question would be suspended from working in Chinese football for between one and three years.
Foreign players are unaffected by the new regulations, and there are no changes with regards to the transfer tax, with all foreign players costing more than 45 million RMB (7 million U.S. dollars) subject to a 100 percent levy charge to be paid into a grassroots development fund.
国际英语资讯:Gold retreats as U.S. dollar strengthens
国际英语资讯:UNGA fails to adopt U.S. drafted resolution condemning Hamas
国际英语资讯:Spanish leader to enhance economic, political ties with trip to Cuba
国际英语资讯:Half of FDI pledged to Nepal goes to tourism sector
国际英语资讯:Cuba appeals to IAEA to assess its readiness for radiation emergencies
国际英语资讯:S. African National Assembly adopts report on procedures to remove president
国际英语资讯:UN envoy not objects to replacing Presidential Council: Libyan parliament speaker
国际英语资讯:Greece hit by first major strike in post bailout era
国际英语资讯:Israeli geopolitical instability behind Lebanese financial crisis: economist
国际英语资讯:Spotlight: Former U.S. President George H.W. Bush laid to rest in Texas
国际英语资讯:APEC Economic Leaders Meeting wraps up
2018年12月六级易考范文: 将中国文化融入大学教育
国际英语资讯:Oil prices plummet amid U.S. drilling rigs down
国际英语资讯:Chinese envoy urges intl support for G5 Sahel force
国际英语资讯:Critical 24-hours for UK PM as her Brexit deal faces stormy reception
国际英语资讯:U.S. halts border crossing after migrants protest in Mexico
国际英语资讯:Trump, Merkel discuss trade, security issues at G20 summit
国际英语资讯:Trump submits written answers to Mueller over Russia probe
国际英语资讯:Libya, UN discuss disposal of dangerous material in western Libya
国际英语资讯:News Analysis: British PM set to press ahead with Brexit plan despite political crisis
国际英语资讯:Feature: Victims of Lao dam disaster see brighter future as Chinese firms provide infrastruc
国际英语资讯:Macron admits failure, but sticks to contested reforms
国际英语资讯:20 IS militants killed by U.S.-led airstrikes in eastern Syria
国际英语资讯:S. Korea to dissolve Japan-funded foundation for wartime sex slavery victims
国际英语资讯:Spotlight: Nissan chairman Ghosns fall from grace sees further allegations of double-deali
国际英语资讯:German Freshfields offices searched again in Cum-Ex tax fraud scandal
国际英语资讯:U.S. State Department denies reaching final conclusion on Khashoggis death
国际英语资讯:Swedish envoy concerned about collateral humanitarian damage of sanctions on DPRK
国际英语资讯:SpaceX postpones launch of 64 small satellites
国际英语资讯:Russia slams Washingtons plans to quit arms control treaties