China caps club spending power and limits player salaries

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December 21 – The Chinese FA has slapped a comprehensive set of financial controls on its Super League and professional clubs covering money that can be spent owners on their teams, player salaries and even player bonuses for winning competitions.

Next season the maximum spend a club can make in a club is Yuan1.2 billion ($178 million) in 2019. This number will decrease subsequently with the limit for 2020 being Yuan1.1 billion ($159 million) and Yuan900m ($130 million) in 2021.

Next season no China League One club should spend more that Yuan200 million ($29 million) and clubs in China League Two, Yuan35 million ($5 million) each.

Adopting the financial analysis models of Europe’s clubs, the Chinese have focussed on the crucial ratio of spending on players’ salaries to club budget saying salary spending should not exceed 65% of each club’s budget in 2019 with this ratio falling to 60% in 2020 and 55% in 2021.

Individual player salaries (excluding bonus) should not be more than Yuan10 million ($1.4 million), with exceptions for players that will play in the 2019 Asian Cup and the 2022 Qatar World Cup Qualifiers who can earn 20% more.

Bonuses for winning AFC Champions League matches should not exceed Yuan6 millon ($868,000), and for CSL matches not exceeding Yuan3 million ($434,000) and for drawn games not exceeding Yuan1 million ($145,000).

Limits on investment clubs are set at Yuan650 million ($94 million) for 2019 for every CSL club Yuan550 million ($79 million) for 2020 and Yuan300 million ($43 million) for 2021.

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