Soocer economics guru Stefan Szymanski thinks that, among the Asian nations, China is most likely to produce a globally competitive soccer league in the next decade. That is because it is following the European model: spend, spend, spend.
Soocer economics guru Stefan Szymanski thinks that, among the Asian nations, China is most likely to produce a globally competitive soccer league in the next decade. That is because it is following the European model: spend, spend, spend.
However, there are signs that Beijing thinks that the recent spending spree recruiting European stars has got out of hand. No longer was it a case of leading Chinese teams signing players with a great future behind them. Big transfer fees and wages were being paid for the likes of Oscar and Carlos Tevez.
China’s top sports administrator has vowed to cap spending by football clubs, accusing them of ‘burning’ money and paying excessive wages to foreign players. A cap on players’ salaries and transfer fees is to be established to control ‘irrational investment’. Of course, when an investment is rational or not is a moot point, particularly in a country where many investment decisions are politically driven or at least politically sanctioned.
It was also stated that clubs whose liabilities exceed their assets could be banned from competition. It is often difficult to discern exactly what the political weather is in the Middle Kingdom, but it is thought that Beijing is concerned about capital flight disguised as foreign investment. Some Chinese companies have moved billions of dollars offshore via acquisitions to escape a weakening currency. Consequently, they overpay for foreign assets and that goes for imported ones as well.