In a drastic turn of proposed progression, the Chinese Super League (CSL) have introduced a new 100% tax on foreign signings meaning CSL clubs are now looking at paying double on any previous transfer fees.
The move comes following intervention from the Chinese Football Association (CFA) meaning that the 100% tax moves into a grassroots development fund – one could consider this to be a carefully considered ploy.
Though in analysing the full impact of this sudden change in the monetary market of Chinese football, what could this mean for the Premier League and rumoured moves for star players such as Diego Costa, Wayne Rooney and even Cristiano Ronaldo?
The Premier League and its member clubs will likely be mixed in their response, that mix dependent on the financial muscle of each club in question. For the typical top-6; Chelsea, Manchester United & City, Liverpool, Arsenal and Tottenham, this will be welcome news in what looks set to be a turbulent window of transfer activity.
For these ‘bigger’ clubs, the sale of key assets is far less desirable and despite offering an equal financial benefit, the top-6 are looking to buy, not sell. The CSL and its member clubs represented a major threat to Premier League assets, the introduction of this new tax has perhaps scuppered any proposed plans for foreign CSL transfers.
The move is pragmatic from the CFA, but its timing stands out as the most surprising part. Shortly after a window in which Oscar (£60m), Hulk (£57m) and numerous other high profile transfers arrived in China, the 100% CFA introduced tax offers a clear financial barrier for CSL clubs to match their previous levels of expenditure: the CSL (£330m) outspent the Premier League in the most recent transfer window.
Premier League clubs will likely be nervously anticipating the next flurry of transfer activity from the far East, the CSL looked set to rip apart what we currently know to be the financial dynamics of transfer fees in an already lucrative market.
Monday (June 19th) marked the introduction of this tax, though it remains to be seen if the likes of Diego Costa and Wayne Rooney will be plying their trade in the CSL next season.
Though one certainty remains: a 100% signing tax has significantly altered the expected dynamics within the previously imaginable CSL expenditure levels. The Premier League looks set to retain its star performers, courtesy of a considered, pragmatic but controversial move from the CFA.
Written by Tom Newman.
90maat.com – your digital Premier League guide.
