The Chinese Football Association (CFA) is in a discussion about introducing a salary cap for the Chinese Super League (CSL), according to a recent Weibo post by Chinese sports reporter Yu Jing.
In a CFA meeting held last week, management of the CSL and the China League One discussed how to carry out the new salary policy for first-team players by 2021, which may lead to a spending ceiling of 75 percent of a club’s annual income.
The proposals are believed to be a response to China’s urge for clubs to get their finances in order last year. The proposed measures aim to improve the financial health of Chinese professional football by reducing irrational signings of foreign players. The exact percentage has yet to be finalized as of now.
In 2021, All CSL and China League One clubs will be required to submit their financial results for 2018-2020 seasons. A club will be not allowed to exceed their loss limitation within three years, CNY450m and CNY135m for a CSL club and a China League One club respectively.
Specifically, a CSL club’s loss limitations for 2018, 2019 and 2020 are CNY200m, CNY150m and CNY100m respectively.
Source: ifeng & online.sh.cn
Proofread by William Logsdon