Football tax China tackles transfer market
amsterdam - A hefty Chinese taxation affects the market of football transfers with top players. This also seems to be a temporary stop on the departure of expensive players from European competitions to China.
The taxation from Beijing, which increases football transfers of more than $ 7 million per player with a levy of 100%, fits in with the government's approach to the outflow of capital from China. It hopes to tackle corruption.
The taxation now visibly leads to fewer investments in good Western players for the Chinese competition, reports the Financial Times on the basis of research in the country.
At the end of this month the next tax intervention will take effect. Sixteen Chinese clubs have spent $ 86 million together, compared to the $ 500 million last year and the $ 450 million the year before.
The British Premier League, the richest in the world, spent $ 600 million on transfers.
Among others, Javier Mascherano, ex-Barcelona and ex-Liverpool, went to Hebei China Fortune. Carlos Tevez, Oscar and Alexandre Pato also passed. On average they play for 26,000 supporters per week.
The new intervention means that the value of television rights for broadcasts of matches has decreased by 30%.
The Chinese league, the Super League, was given an enormous boost earlier when President Xi Jingping announced the football revolution, with major investments from local entrepreneurs and the rich in clubs and players.
In the short term, the intervention will impoverish the quality of Chinese football, according to consultant Deloitte, who advises the Super League against the Financial Times. The expectation of market researchers is that the Chinese competition within Asia weakens, while those years had increased in strength.
Shanghai SIPG, one of the better performing clubs, however, argues against the FT that their own breeding will soon lead to comparable quality.
Clubs are looking for circumvention: football transfers above $ 7 million per player could be for the account of a foreign investor.
China invests heavily in its own football schools to be able to place itself through the training of young Chinese players for the next World Cup.
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