Why do most Chinese football clubs suffer losses?

The Chinese national football team announced a new training roster. The selection of Guangzhou Evergrande’s naturalized players and Luo Luo will greatly reverse the embarrassing situation of the national football team’s weakness and give fans more hope of qualifying. Among the other naturalized players from Guangzhou Evergrande, Alan is already qualified to represent the national team, and the qualifications of Galate and Fernando are in the process of being processed. According to the latest news from the media, Evergrande spent huge sums of money last year to complete the domestication of five players, Galate, Alan, Ronaldo, and Fernando. In 2019 alone, Evergrande paid 870 million yuan in transfer fees, wages and placement fees for these five naturalized players.

Why did the club lose 1.9 billion? Evergrande is striving for the future of Chinese football. Evergrande Taobao also pointed out in its financial report that due to excessive player wages and transfer costs, the club is still in a state of loss. Data shows that in 2019, the club's total cost reached 2.89 billion pounds. In other words, only 5 naturalized players accounted for 30% of the naturalization cost; the club's total loss for the year was 1.94 billion.

It is worth mentioning that before Evergrande implemented naturalization, no other club was willing to pay for naturalization. Evergrande not only provided money, but also sent a dedicated team to complete the approval of the Chinese Football Association and the State Sports General Administration, as well as the naturalization procedures of the National Immigration Bureau; through the Chinese Embassy in Brazil, it actively contacted the Brazilian Ministry of Foreign Affairs, Ministry of Justice, and Immigration Bureau to complete the retirement of players. Procedures; Finally, the qualification certification of naturalized players will be completed at FIFA and AFC. This is not the first time that Xu Jiayin has invested in the national football team at any cost. Jiangsu Football Club announced the suspension of operations. On the same day, Tianjin Kinmen Tigers Football Club failed to submit admission materials for the Chinese Super League before the deadline.

Excluding the above two clubs, at least 95 third-level professional league teams have been disbanded since the professional reform of Chinese football in 1994. In the Jinyuan Football Era, the power of capital brought about a significant increase in the exposure of Chinese football, but it also brought about a huge bubble. Why did the capital initially favor football? Why is the capital boom fading? What will the professionalization of Chinese football face in the future? Taking root in cities and communities, building a Chinese professional football league, vigorously developing youth training, and returning Chinese football to its due value can provide answers to the career development of Chinese football.

Picture of the disappearance of Chinese football clubs. According to incomplete statistics from reporters of "21st Century Business Herald", since the professional reform of Chinese football in 1994, at least 95 teams in the Chinese Super League, Chinese League One, and Chinese League Two have been banned. The dissolution does not include Jiangsu Football Club, which officially announced its closure in 2021, and Tianjin Kinmen Tigers Football Club, which has not been heard from yet. Among them, 11 top league teams, 14 Asian league teams, and 70 third-level league teams bid farewell to people's vision.

A deep map of the disappearance of Chinese football clubs: Looking back at the Jinyuan, how to resolve the football bubble?