The Chinese Super League (CSL) is expected to pay only £1.7m to each of its clubs as part of revenue distribution for the 2019 season, with the remaining £2.3m expected to be provided when the league collects fees owed by its commercial partners.
In total the competition will pay its clubs RMB65m (£7.4m) with just under half of the figure (RMB30m) already paid out.
The reasoning for why these 2019 revenues have yet to be provided to the clubs, which are in desperate need of funding due to the COVID-19 outbreak, is due to the fact that the league has yet to receive an estimated £36.2m (RMB320m) from sponsors and various partners.
In order to combat the late funds, the CSL has issued a number of initiates to its clubs in order to help lower the financial costs that COVID-19 and the reduced revenue has caused. These plans include introducing a ‘reasonable’ salary cut for players starting from March 31 covering the rest of the 2020 season, which has yet to begin.
According to CGTN, the CFA stated: “Due to the pandemic, professional football clubs and investors generally runs into operational difficulties. Their calls for a moderate alleviation of financial burdens and reasonable reductions in salary are strong.”
Several CSL sides will also still be deducted league payments if they breached league regulations during the 2019 season. This means that champions Guangzhou Evergrande will receive a RMB500,000 deduction for breaching advertising regulations during a match last campaign.
Insider Insight: Given Chinese football’s recent financial instability, particularly in its lower divisions, the COVID-19 outbreak has left the CSL in a very precarious position. CSL’s inability to provide its clubs with last season’s revenues in full is also a worrying sign that sponsors are unwilling to provide the funds during the virus, likely causing more Chinese sides to face financial repercussions.
