(Reuters) – The Chinese Football Association (CFA) said clubs who fail to settle all unpaid salaries by Dec. 31 will be relegated or expelled, while those who do not meet deadlines during the year will be deducted points as part of its plan to deal with wage arrears.
The CFA disqualified Liaoning FC in the 2020 season after the club failed to provide evidence to authorities that they had cleared their debts and had paid employees’ salaries.
Lower league clubs Guangdong South China Tigers, Sichuan Longfor and Shanghai Shenxin also disbanded after they failed to submit the salary and bonus confirmation form before the 2020 season.
Under the plan, clubs must settle at least 30% of the total arrears by July 31, not less than 70% before Oct. 31 and all unpaid wages by Dec. 31.
Clubs that repay less than 30% by July 31 will be banned from registering new players in the second transfer window of the 2022 season and deducted three points.
Clubs that repay less than 70% of total arrears by Oct. 31 will be deducted six points.
The plan was announced after the CFA and the China professional football union convened clubs from the top three divisions to hold an online meeting on Sunday.
The 2022 season of the top flight Chinese Super League will begin later this month.
(Reporting by Manasi Pathak in Bengaluru; Editing by Peter Rutherford)
