China has been a financial paradise for many top European soccer players. But a new rule by the China Football Association, with a 100% tax on transfers by clubs who are losing money, might kill this track, says Beijing-based soccer expert Rowan Simons to Tribal Football.
Rowan Simons, a writer on Chinese football, and also Chairman of China Club Football, the country’s biggest grassroots football network, explains how the rule will work.
“If implemented in it’s current form and based on the fact that all of the Chinese clubs lose money, then all future imports of foreign players will be subject to the 100% tax. So, in effect doubling the cost of player transfers.
“And the number’s have been huge: So say with €60m with 100% tax, that becomes €120m.”
Footballers plying their trade in Europe have flocked to the Far East in recent years – and not only in the twilight of their careers, as the aforementioned Oscar can attest.
As well as the European clubs being rewarded with hefty transfer fee’s, so too are the players with astronomical wages, with players like Tevez set to make £64m over two years.
However, that will all change soon according to Simons.
“(The rule) changes the dynamics of the professional league here in all kinds of ways – certainly in terms of investors ability to attract top players.
“I mean the sponsors, which have been attracted to the league because of the star players, the gate receipts which have been increasing, all can be impacted by this policy.”
The tax will come into effect on June 16 when the Super League’s transfer window opens, which is two weeks before the European windows opens.
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