Chinese authorities stop soccer clubs 'burning money'

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‍China’s top sports governing body said on Thursday it will cap spending by Chinese soccer clubs while they have been “burning money” on importing foreign players.

China's General Administration of Sport (GAS) plans to “regulate and restrain high-priced signings, and make reasonable restrictions on players’ high incomes," said a GAS spokesperson.

GAS made the statement after a string of splashy record-breaking signings during the winter transfer window.

Chinese Super League club Shanghai SIPG spent 60 million euros (63.5 million US dollars) on Brazilian midfielder Oscar from Chelsea, and Shanghai Shenhua signed Argentine striker Carlos Tevez from Boca Juniors, who has reportedly become the world’s highest paid player with a contract worth an astonishing 80 US dollars per minute, for an 84 million euro (88.9 million US dollars) transfer fee.

This photo shows an unidentified Boca Juniors fan cheering Carlos Tevez as he leaves the field during an Argentina First Division football match against Colon at La Bombonera stadium, Buenos Aires, December 18, 2016. /CFP Photo

The rapid development of soccer in China has drawn concern over issues such as "large-scale overseas acquisitions, the grave phenomenon of clubs burning money, foreign players with excessive salaries, not attaching importance to youth training, and only emphasising short-term achievements and neglecting long-term development," according to the statement on GAS website.

Faced with these problems, GAS plans to set a cap on clubs' expenditures for buying players, and supervision of club finances will be stepped up to keep fees for top-tier players within reasonable limits.

GAS also warned that clubs whose liabilities exceeded their assets would be banned from professional competition, and it would combat irregular behavior with regards to signing fees and under-the-table contracts.

This photo taken on May 26, 2015 shows fans of Beijing Guoan during a match against Jeonbuk Hyundai Motors in Beijing. /CFP Photo

Players and agents found to be in violation of regulations would be “severely punished”.

This warning comes as China seeks to curb illegal capital outflow disguised as foreign investment.

China’s four major financial regulators issued a joint statement last month, saying they were monitoring “irrational” overseas investment in real estate, hotels, film, entertainment and sports clubs.

Meanwhile, the enormous spending of Chinese clubs has alarmed administrators in the European game.

Arsenal manager Arsene Wenger and Chelsea’s Antonio Conte are among leading figures to have expressed concern about players being lured to China because of the financial benefits.

In December, Cristiano Ronaldo's agent Jorge Mendes claimed the player was offered 300 million euros (317.5 million US dollars) and more than 100 million euros (105.8 million US dollars) per year by an unnamed Chinese Super League club.

The 2017 Chinese Super League campaign begins in March and finishes in November.

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