Chinese Football Association announces re-think on transfer fees after foreign player u-turn

The Chinese Football Association has unveiled 18-point plan including new tax on big fees as well as new three-player restriction on foreign players

Oscar became the latest footballer to move to China while in his prime earlier this month (Getty)

The Chinese Football Association has announced plans to slow rampant spending by taxing big transfer fees paid by Chinese Super League clubs. The Chinese government is unhappy with the huge fees paid recently, seeing them as an embarrassment to the nation, and on Thursday the Chinese Football Association issued new transfer guidelines, with a heavy tax on big fees.

Last week the CFA announced its first plans to reduce the number of foreigners allowed in each Chinese Super League team, a major u-turn after years of big spending on foreign players. But the government’s new focus is on fees, which are growing almost as fast as wages for big foreign signings.

Yesterday the CFA released an 18-point program, as part of its ‘plan for the reform and development of Chinese football.’ This included a new tariff on big transfer fees to direct money to a ‘football development fund’ to pay for grassroots football. In practice this will mean a tax on fees beyond a certain level, expected to be roughly €30m.

The Chinese government has encouraged big spending in recent years but has grown increasingly uneasy with the big fees spent on players in the last few months. The CFA warned last week against “irrational investment” and the government eventually wants to have the final say on deals, limiting them to a state-imposed maximum of what they deem to be a reasonable value for a player. Yesterday’s plans are not as advanced as a proposed €30m fee cap, but represent a step in that direction.

Shanghai SIPG paid €65million (£56m) for Oscar last month and when Tianjin Quanjian were interested in Diego Costa last week, they seriously considered paying the €90m (£78m) price they had been quoted by intermediaries. Chelsea always insisted Costa was not for sale.

The CFA’s 18-point plan reiterated their new restrictions on foreign players, first announced last week. Earlier this season CSL teams were allowed four foreign players plus a fifth non-Chinese Asian in a match-day squad, with three foreigners plus a fourth non-Chinese Asian on the pitch at any given time. The new rules will only allow three foreigners in any match-day squad. “This decision should have been made after the season,” said Shanghai SIPG coach Andre Villas-Boas.