Screenshot from the Chinese Professional Football League's official website

Screenshot from the Chinese Professional Football League’s official website

The Chinese Professional Football League (CFL), an independent federation aimed at operating all levels of China’s professional football leagues, on Wednesday announced a series of new regulatory measures, covering club finances, league admission, ownership transfers and replacement procedures. Among the penalties, clubs found using so-called “yin-yang contracts,” undeclared dual contracts to evade salary caps, will be relegated.
According to the CFL’s official website, top-tier Chinese Super League (CSL) clubs will face a 600 million yuan cap on annual pre-tax spending. The limits for lower divisions are set at 200 million yuan for China League One and 50 million yuan for China League Two.

Player salary caps have been also clarified. The pre-tax annual salary cap for domestic players is set at 5 million yuan in the CSL, 3 million yuan in China League One and 1.2 million yuan in China League Two. Clubs’ average pre-tax annual salary for domestic players is capped at 3 million yuan in the CSL, 1.5 million yuan in China League One and 500,000 yuan in China League Two. The pre-tax annual salary cap for individual foreign players is 3 million euros in the CSL and 1.5 million euros in China League One, while the total pre-tax annual salary for all foreign players on a team is capped at 10 million euros in the CSL and 4 million euros in China League One.

Clubs exceeding spending, salary limits and bonuses will be docked points, the CFL said. If a club is found to have engaged in deceptive practices, such as signing dual contracts with players or issuing improper payments, it will have its results for the season annulled and be relegated to a lower division the following year. Any players involved will face a 24-month ban.

The new access requirements no longer mandate CSL clubs to operate women’s teams. Super League clubs must maintain at least five youth squads at different age levels; League One clubs must field at least four and League Two clubs at least three. Clubs applying for league admission must have no unpaid wages, and their bonus standards must be publicly disclosed.

In terms of club ownership transfers, both the transferring party and the acquiring party must have no overdue debts to any entities or individuals within the industry when applying for a transfer. A club may carry out only one major equity transfer during a single season.

Under updated replacement rules, if vacancies arise in next season’s CSL, only the two relegated clubs from the current year and the third- and fourth-place teams from League One will qualify for replacement consideration. Clubs entering by replacement will be prohibited from relocating during that season in principle.

Global Times