Chinese FA Announce 100% Tax On Transfers

[Honey Honey]

 

Quote

 

The Chinese FA has announced a shock new 100 per cent tax on the signing of foreign players which could prevent the likes of Diego Costa and Wayne Rooney from joining the Chinese Super League this summer.

According to the new rule, any "loss-making" clubs buying foreign players will have to pay the same amount as the transfer fee into a fund to help the development of young Chinese players, effectively doubling the price of the individuals.

The tax, the latest in a series of new rules the Chinese FA has introduced to limit spending on foreign players, will come into force when the Chinese transfer window opens on 19 June.

 

The CFA says: "Clubs signing players through capital expenditure will be charged the same amount, with the full sum going to the Chinese Football Development Foundation, to train young players, promote social football and soccer charity activities.

Before the CSL season returned in March, the CFA announced a new rule limiting the number of foreign players allowed in a match-day squad to five.

Over the past two years there has been a large boom in players opting to move to China, with clubs paying huge fees to sign players such as Hulk and Carlos Tevez, as well as spending up to £650,000 a week on their individual wages.

The Chinese FA's long-term aim is to improve the fortunes of the national team - who currently sit 81st in the FIFA rankings - before hosting a World Cup, probably in 2030.

 

https://www.skysports.com/football/news/11095/10892132/chinese-fa-announce-shock-tax-on-foreign-player-signings

 

That's the end of mugging them off then

[Smiley Culture]

This is a good move IMO. It forces clubs to operate properly, ensures Chinese Football is allowed to develop and it doesn't just become a big free-for-all for foreign players on a pay day. 

[True Blue]

God fucking dammit China, you could take Costa on a cut price and then make new rules.

Pathetic 

[Harry]

Good move. There's probably enough money that they'd afford paying it anyway,  but at least now it would go towards helping development of Chinese local football. 

 

[Cicero]

Fun while it lasted. 

 

Ah well, guess a straight swap with Costa and Griezmann will do 

[6666]

It is quite drastic and makes them look erratic and irrational but in the long run it might be more beneficial for them. If you're losing money you have to pay double. 

[Large]

Why only loss making clubs though?

[Spike]

1 minute ago, Large said:

Why only loss making clubs though?

I imagine it's to prevent debt and loans. 

[Large]

5 minutes ago, Spike said:

I imagine it's to prevent debt and loans. 

But I thought the point was to improve development abd possibilities for Chinese players. If that's the true aim then the rule should apply across the board. I don't understand it.

[RandoEFC+]

9 minutes ago, Large said:

Why only loss making clubs though?

I imagine it's similar to financial fair play. I.E. clubs that are actually making that much money from ticket sales, merchandise, sponsorship, developing and selling players, general good business have the right to spend the money they earn whereas clubs that aren't doing any of this and just have massively rich owners buying players for them while they make a loss on the business side don't get that privilege.

[Spike]

Just now, Large said:

But I thought the point was to improve development abd possibilities for Chinese players. If that's the true aim then the rule should apply across the board. I don't understand it.

Well, I think that they won't tax a club that has the money to spend but they will tax a club that doesn't exactly have the money on hand (it's a preventative measure, a club won't take a bank loan to cover a transfer fee is the fee is subsequently doubled). 

[Large]

1 hour ago, RandoEFC said:

I imagine it's similar to financial fair play. I.E. clubs that are actually making that much money from ticket sales, merchandise, sponsorship, developing and selling players, general good business have the right to spend the money they earn whereas clubs that aren't doing any of this and just have massively rich owners buying players for them while they make a loss on the business side don't get that privilege.

 

1 hour ago, Spike said:

Well, I think that they won't tax a club that has the money to spend but they will tax a club that doesn't exactly have the money on hand (it's a preventative measure, a club won't take a bank loan to cover a transfer fee is the fee is subsequently doubled). 

So nothing to do with the development of the game at all then. If you can afford to pay the tax you won't get taxed, and if you can't you will. That's been well thought out.

[Dickie]

Back to the MLS retirement league it is.

[Batard]

This isn't designed at all to improve grass roots football in China, the CFA have been strong armed by the government to stop millions and millions of Chinese money leaving the country, money they don't want sat in foreign bank accounts. The government are acutely aware that if any of these backers were to spectacularly collapse, the government would not want to liable to write off such extreme losses. This measure works in two fold, discourages insane spending and provides a source to siphon cash from if any club is mental enough to spend with wild abandon.