China: Chinese Super League clubs to adopt a salary cap from 2019

The Chinese government has decided to set up a salary cap for Chinese Super League (CSL), China League (second Division) and China League Two (third Division) clubs starting in the 2019 season, according to a Xinhua, China's state-run news agency, on 21/11/2018. The salary cap figure has not yet been disclosed.

"The regulations hope to curb 'irrational' investment and promote healthy and sustainable development of professional leagues," said the Chinese Football Association (CFA), which "will work with other government bodies like the State Administration of Taxation to crack down on dual contracts and tax evasion," according to Xinhua.

These new rules are in line with the Chinese government's decision to tax domestic transfers above CNY20m (€2.5m) and international transfers above CNY45m (€5.7m), since 2017. Therefore, Chinese clubs that pay a transfer fee in excess of one of these limits are required to pay the State 100% of the amount that exceeds it, which contributes to a national fund for the development of young Chinese players.

• The Chinese government's decision to…