New rules coming into effect on the 19th of June could be a huge boost for grassroots clubs in China, in an unprecedented move by the Chinese FA, seen by many as a game changer. Clubs will be forced to match the amount paid on transfer fees into grassroots football in China.
The CFA wants to put an end to the inflated fees and focus on youth, with the transfer rule – set to come into effect in June – forcing clubs to invest into a development fund should they make a transfer loss.
“Money from the fee will be used to the development of young players, the promotion of grassroots football and charities”.
“The club would be paying the same amount of money as their outlay on player recruitment to the Chinese Football Development Fund.
China is set to take steps to bring down soaring amounts of transfer spending, especially on foreign players, and at the same time to support the development of local players, as the Chinese Football Association (CFA) announced the strongest polices ever set out to these ends on Wednesday.
Clubs who are already in debt but buy foreign players in the forthcoming transfer window – which opens on June 19 – will have to pay an equivalent fee into a development fund.
But the new requirement that clubs match transfer fees with investment in youth football marks the first known instance of a specific financial measure aimed at curbing big signings.