SPORT / MISCELLANY
New policies allow soccer clubs to bear sponsors’ names and relocate
Reshaping the landscape
Published: Jan 03, 2024 10:46 PM
Fans show their support to Team China during a World Cup qualifying match in Shenzhen, Guangdong Province in November 2023. Photo: VCG

Fans show their support to Team China during a World Cup qualifying match in Shenzhen, Guangdong Province in November 2023. Photo: VCG

In a groundbreaking move, the Chinese Football Association (CFA) has unveiled a raft of new policies that promise to reshape the landscape of Chinese soccer for the upcoming 2024-28 seasons. 

The reforms, detailed in documents released on January 3 via the CFA's website, mark a significant departure from strict regulations that were implemented under the previous CFA administration, offering a glimpse into a more flexible and dynamic future for soccer clubs in China.

A pivotal aspect of the newly introduced policies is the conditional acceptance of club relocation. This move ditches stringent restrictions previously in place, allowing soccer clubs the freedom to explore opportunities in different cities. 

Relocation debate

It now opens the door for Sichuan Jiuniu, newly promoted to the top tier of China's Chinese Super League (CSL), to look for a new home. 

Sichuan Jiuniu, partially owned by Manchester City's parent company City Football Group, has been robustly seeking to relocate since the beginning of the 2023 season. 

Their request for relocation from Southwest China's Sichuan Province to Central China's Hunan Province was not approved by the CFA in 2023. It is being speculated, however, that the club has been working on relocation to Shenzhen in South China's Guangdong Province.

Mao Jiale, a Chengdu-based sports commentator, said though the new policy has given the green light to relocation, it is still too early to say whether Jiuniu's relocation will be successful. 

"It takes a lot of approvals from multiple local authorities for such a relocation to happen," Mao told the Global Times. "After the CFA's rejection in 2023, Jiuniu surprisingly won the second-tier league rather than succumbing to dysfunction, which means that they are able to find a way to survive."

Clubs seeking to relocate must submit written approvals from both the sports administrative department and member association of the destination city, as well as written consents from the sports administrative department and member association of the erstwhile host city. 

Additionally, to maintain stability and discourage frequent city-to-city transfers, clubs completing a change in registration member association are generally restricted from applying for another change for a period of five years.

"Relocation provides clubs with greater flexibility, potentially expanding their fan base elsewhere and unlocking new avenues for growth, but it will deal a big blow to the club's original 'home,'" Mao noted.

Chen Wenhua, a Guangzhou-based sports analyst, echoed the sentiments, saying that allowing relocation just offers a short-term lifeline to clubs.

"Allowing relocation reflects a shortsighted perspective. Clubs, when acknowledging they cannot easily move, are compelled to establish strong roots locally and operate effectively to encourage soccer fans to support the clubs wholeheartedly," Chen said.

"However, once the door to relocation is opened, how will clubs perceive their situations? If things aren't going well in one place, clubs will just find a new location with better financial incentives, which will turn into a nomadic existence for teams, and ultimately fans will no longer commit their wholehearted support."

Figures also revealed that club relocation does not often lead to long-term prosperity as eight clubs, including Chongqing FC, Tianjin Tianhai and Beijing Chengfeng, which historically relocated before the CFA banned relocation in 2016 have now been dissolved. 

Chinese striker Wu Lei (left) shoots in a World Cup qualifying match against Thailand in Bangkok, Thailand, in November 2023. Photo: VCG

Chinese striker Wu Lei (left) shoots in a World Cup qualifying match against Thailand in Bangkok, Thailand, in November 2023. Photo: VCG

Striking change

A most striking change, perhaps, is the green light given to clubs to include sponsor names in their official titles during the 2024-28 seasons. 

This is an about-turn from the previous policy underscoring the CFA's commitment to adapting to the evolving landscape of soccer sponsorship and finance.

Fans in East China's Jiangsu Province have lamented that the policy was not implemented sooner as they commemorate Jiangsu FC. 

The Nanjing-based club, once financially supported by Suning, one of China's leading retailers, was dissolved at the beginning of 2021 after winning their maiden CSL title in 2020 due to Suning's worsening financial situation that fiscal year.

Financial difficulties, fueled by the COVID-19 pandemic, led to the dissolution of several clubs last season, such as Guangzhou City, Wuhan Yangtze River, and Hebei FC.

Last season's CSL third-place finishers Zhejiang FC have become the first team seeking a brand name sponsorship, as they announced on their social media accounts on Wednesday that they are looking for a commercial partner to appear in the new season.

However, in a bid to strike a balance between corporate support and preserving the traditional, community-oriented essence of soccer clubs, the new regulations stipulate that clubs must maintain a neutral, non-commercialized name for the club itself. 

"This dual approach acknowledges the importance of financial support while safeguarding the rich history and cultural significance of soccer clubs within their communities," Beijing-based sports commentator Luo Le said. 

Equally noteworthy is the change regarding foreign players. 

The cumulative registration of foreign players in a season has increased to seven from five, with a simultaneous registration of six players, while five players are allowed to participate in each match.

Some analysts believe the move will further limit space for local talents, but Mao noted it could also elevate the overall quality of the CSL, while also increasing the competitiveness of CSL teams in the Asian competitions.

Luo, however, believed the foreign player change is unlikely to bring the internationally famed soccer stars that the CSL used to host.

"The CSL clubs are facing financial troubles in recent years as the impact of the COVID-19 pandemic lingers," Zhou told the Global Times. "It's unlikely that high-profile soccer stars earning big in China will be repeated."

But the move will certainly alleviate the concerns of China's international clubs currently facing financial troubles, allowing them to focus on international duties.

The mainland team, which is currently preparing for the upcoming Asian Cup, suffered an embarrassing 2-1 defeat to Hong Kong on January 1 - the first time Hong Kong has beaten the national team in nearly four decades.

"The [mainland] players can now set their minds mainly on international duties rather than being distracted by club issues," Mao noted.