One year after the Chinese Football Association (CFA) introduced the luxury tax, the only cases where a club paid the contribution to the CFA are those of Beijing Guoan, in relation to the transfers of Cedric Bakambu - 27-year-old French-Congolese striker - from Villarreal CF and Jonathan Viera - 28-year-old Spanish midfielder - from UD Las Palmas, respectively.
Introduction
One year - and two transfer windows - have passed since the introduction of the “luxury tax” by the CFA and we can now provide the reader with a deeper analysis of its effects on the Chinese transfer market, breaking down the relevant data and figures and explaining the amendments introduced by the CFA during the last 6 months.
As explained in the previous issue,[1] the transfer adjustment fee was implemented by the CFA in May 2017 to tackle the excessive expenditure on the transfer of football players in China. In summary, the CFA set a cap of expenditure for single transfer: CNY 45 million for foreign players (approx. EUR 5.8 million) and CNY 20 million for Chinese players (approx. EUR 2.5 million). In the case of a transfer for a fee above the cap, the buying club must pay the same amount as the transfer fee to the CFA, which...
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