As reported by Xinhua News Agency, the Chinese Football Association (CFA) recently held a financial review working meeting with participants including the financial directors of all 32 CSL and China League clubs. The purpose of this meeting was to implement one of 18 measures issued by the CFA in the regulation of the leagues. It is estimated that by the end of November 2017, the CFA will publish the relevant financial regulations.
One of the 18 measures issued by the CFA to regulate the leagues in January relates to the financial situation of professional football clubs. It requires clubs to operate as an independent legal entity with less dependence on financial support from its parent company and shareholders’ companies. The CFA will employ a third-party auditing company to conduct co-ordinated financial reviews of the clubs and focus on examining sources of funding, their expenses, how funding is used in the youth teams and the methods of player payments. The related income and expenditure records of all clubs will also be published. Those clubs who are found to be insolvent will be disqualified from league registration.
During the meeting, there was a brief introduction of the plan with its related content and requirements for the financial review, and also a consultation about how the financial regulatory approach will be set up. The auditing panel will include the CFA and PwC with all 32 CSL and China League clubs being reviewed. From late June to September 2017, there will be a thorough auditing of the clubs’ financial situation.
The CFA is estimated to publish the financial regulatory strategy by the end of November 2017. The execution schedule of the audit will be: 2018 - coaching phase, 2019 - trial phase, 2010 - start official execution.
Sources from the CFA reveal that the purpose of these actions is to improve the club‘s financial situation, helping them to spend money wisely and help clubs to improve their operations.
Proofread by Raymond Fitzpatrick