Why the Chinese Federation is going to impose huge fines on clubs?

By February 13, 2018 Football, Football News  Comments
Why the Chinese Federation is going to impose huge fines on clubs?

PEKING – Villarreal announced 28 days ago that the Cédric Bakambu contract had been bought. In a statement, the club wished the attacker’ the greatest happiness in his subsequent sporting career’:”Hasta siempre Bakamgoal:” Despite the fact that Villarreal did not reveal who had bought the contract, it was clear that this was Beijing Sinobo Guoan. Nevertheless, this Chinese association has still not made the arrival of the international Congo-Kinshasa of Congo-Kinshasa public.

By Gijs Freriks

Bakambu has been training with the team of trainer Roger Schmidt for weeks and made his first unofficial goal for his new employer on 29 January in the friendly match against IFK Norrköping (1-1). So why has Beijing still not officially completed the transfer? According to the Chinese media, this has everything to do with the tax that clubs have to pay for incoming transfers of more than EUR 5.77 million. For example, if a player is contracted for six million, the club purchasing must also pay six million euros into a government fund intended for the training of young footballers and the promotion of Chinese football in general.

Bakambu’s limited transfer sum amounted to forty million euro, but the levy would not have meant that Beijing lost 40 million, but 80 million euro to the arrival of the born Frenchman. The Imperial Guards invented a trick: they didn’t let the club, but a third party company hive up the transfer price. As a result, Bakambu was formally transfer-free and could make the transition to Beijing silently. This trick shot into the wrong throat of the Chinese Union, which had just introduced the levy on’ capital expenditure’ to curb such exorbitant million transfers. The CFA therefore issued a statement on Monday announcing new measures. Measures applying retroactively to all transfers from last summer onwards:

In the case of a player who left to a Chinese club after a contract termination with transfer-free status, the limited transfer sum is classified in the contract with his former employer as a transfer sum.

For a player who has left for a Chinese club on a rental basis, with an option to buy, the value of the purchase option plus the associated borrowing costs determine whether a levy should be paid or not.

With this first measure, the Chinese union referred to the transfer of Bakambu as a matter of course and the second measure seems to be a direct response to Anthony Fashionste’s switch last summer. The 29-year-old Frenchman let himself for two seasons to Tianjin Quanjian, at an amount of less than 5.77 million euros. This prevented Tianjin from being taxed twice. However, according to BILD, the employment contract also includes a mandatory purchase option of 29 million. If it is to be lifted in two years’ time, Tianjin hopes that the fickle federal directors have already removed the current rules and that the costs will not therefore be doubled.

However, now that the Football Association has announced that an agreement on a purchase option is already’ classified’ as a transfer sum, Tianjin is likely to receive an invoice of at least seventy million euros in the near future. And Beijing seems to have to reserve an amount of eighty million because of Bakambu’s transfer. Ploughs that ignore the association’s attacks can count on points deduction. For example, according to the new guidelines, Beijing and Tianjin both risk fifteen penalty points. The Super League will start again in March and Beijing has still not registered the 26-year-old Bakambu for the competition. The club seems to have done so because they first want to investigate to what extent they can be covered by the association’s levy. However, it seems that the CFA is finally finished with the megadals.

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