GREAT BALL OF CHINA
FOOTBALL IS LESS SPORT, more big business these days. Its financial excesses have become ridiculous. Clubs in England’s Premier League lost an aggregate £117 million in the last financial year. Players’ wages of £250,000 per week – and more – are becoming commonplace. Even very ordinary footballers can fetch many millions in the transfer market. Chinese clubs, relatively new to the game, have fuelled football inflation in a big way. But is that about to change?
It was the Great Ball of China. President Xi Jinping was prepared to pour billions into the Chinese Super League, allowing teams to sign some of the world’s best players, at any cost, then pay them eye-watering salaries. Former Manchester City star Carlos Tevez is said to be earning £615,000 each week tax free, playing for Shangai Shenhua.
Manchester United’s Zlatan Ibrahimovic turned down an offer in excess of £1 million per week. Ibrahimovic is nearing the end of his career, but China is tempting some of the best youngsters across Europe and South America as well.
BILLIONAIRES
There are 600 billionaires in China and they have been encouraged to buy into European football. Scores of clubs have accepted Chinese involvement and among the famous names to be controlled from the Far East are England’s Aston Villa, Spain’s Atletico Madrid and Inter Milan in Italy. Their matches are televised in China, supported by extensive advertising. Moreover, Super League members have signed a new TV deal worth £935 million.
In 2015 President Xi set out a 10-year plan to double the size of his country’s sports economy, based on state and private investment, much of the money going to football. Among the stated aims were to win the World Cup within a generation, having boosted the grass roots game.
However, not all is going to plan. Although Super League attendances have flourished, youth football is not developing. Super-rich clubs have shown little interest in home-grown talent, preferring to concentrate on big-name players (and managers) from the West. There has been a lack of involvement with local communities.
Indifference showed by the top clubs means that the target of 20,000 training academies and 70,000 pitches by 2020 seems unlikely to be reached.
That’s not good enough for the all-powerful government. New rules have been forced on to the clubs in an effort to cut down the number of footballers signed from foreign clubs, giving Chinese youngsters a better chance.
PUNITIVE TAXATION
A punitive 100% tax for overseas players has been introduced. Since, many proposed transfers have fallen through. Chelsea’s Diego Costa was going to be signed for £64 million, until that was doubled to £128 million through the new measure.
Super League lawyers are looking at ways of avoiding these financial penalties. Maybe players can buy out their contracts in Europe and the Americas, then arrive in China for free.
Another restriction to hit clubs demands that competitive matches must start with the same number of Chinese under-23 players as bought-in stars. Again, dodges are being sought, such as substituting the Chinese early in the game.
No matter what clubs try, they’ll find it extremely hard to flout the government’s intentions. If a tax or restriction fails, something new will be rushed into position. In any case, the Chinese Football Association has said it will urge compliance.
The bubble isn’t about to burst, but might shrivel. Crazy money will not be in evidence in the same stratosphere as during the last three years. Professional football in China is going to be brought under control. The authoritarians appear determined.
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