How the Chinese Super League will affect the global soccer market
In the global soccer economy, there are two opportunities in the calendar year to purchase new players and bolster your squad. For the biggest leagues in the world the transfer window is open from June 1st to September 2nd, as well as the month of January.
The amount of money that clubs spend on transfer fees alone is shocking. Last summer, Manchester City spent a combined 104 million pounds on the transfer fees for Raheem Sterling and Kevin De Bruyne. When you factor in their wages, likely north of 200,000 pounds a week, as well as the agent fees and add-on clauses in their contracts, it becomes difficult to comprehend the amount of money bandied around across the globe.
So in a market where astronomical wages and a frugal attitude toward transfer negotiations reign supreme, it is difficult for new leagues to crack into the global elite. For example, Major League Soccer’s steady and risk-averse growth model has seen the league gain serious traction around the world in the past couple of years, over two decades after it’s inception. As it stands, the English Premier League and a handful of other clubs around Europe dominate the market.
However, as of February 27th, the government-backed Chinese Super League threw out the script and announced itself as a serious player on the worldwide scene.
With so many emerging leagues around the world vying for relevance, one big slip up is enough for a league to be deemed pretenders. When CSL side Shanghai Shenhua purchased Didier Drogba and Nicholas Anelka in 2012, the rest of the world took notice. Unfortunately, all eyes were still on the CSL when Shenhua had difficulty paying their wages later that same year, and it appeared that China had gotten in over its head.
With the full support of Chinese President Xi Jinping, the CSL used the recent winter transfer window to declare its comeback. Over the course of two months, the teams in China’s top division spent a combined 265 million pounds on transfer fees. The upstart league outspent all five of the top European leagues. More over, the caliber of player that CSL clubs were splashing the cash to sign sets the league apart from other emerging leagues, like Major League Soccer.
Guangzhou Evergrande paid 2014 Champions League finalists Atletico Madrid $55 million for Colombian striker Jackson Martinez, a mere six months after he joined the Spanish side from Porto for around $40 million. Jiangsu Suning signed Brazilian international Ramires from Chelsea for $31. However, Suning’s capture of Shakhtar Donetsk attacking midfielder, Alex Teixeira.
American owned Liverpool F.C. of the EPL had tried to sign Teixera earlier in the transfer window, but balked at Shakhtar’s $55 million asking price for the Brazilian starlet. Jiangsu Suning stumped up the cash, and in outbidding the cash-strapped English club, the CSL completed the impossible and made a comeback from their high-profile failures in 2012.
Don’t be mistaken; the Chinese Super League is no one-trick wonder. President Jinping’s 50-point plan to host and win a World Cup runs through the CSL.
With encouragement of the government the league has seen an influx of private and public capital over the past couple of years. The government essentially pumped $1.2 billion into the pockets of club owners by having China Media Capital, a state-backed investment firm, purchase the television rights. Meanwhile, Alibaba Group Holding purchased a 50% share in Chinese powerhouse Guangzhou Evergrande back in 2014.
The massive investment in CSL clubs is not spent entirely on transfer fees and high-profile wages. League rules dictate that only five roster spots can be allotted to non-Asian players. So, in order to attain success in the long run, the league needs to complement it’s spending on big name signings with investment in player development. Unless Chinese clubs can consistently produce high-quality, local Homegrown players from their Academies, the CSL rapid’s ascent will be short lived.
While many may dismiss the recent emergence of the Chinese Super League, if it continues to grow at such an exponential rate, it could soon compete with the English Premier League. With the support of the government, the CSL could be here to stay. In fact, in ten to fifteen years the MLS and the CSL could be on par with the German Bundesliga, Italian Serie A, English Premier League, and Spanish La Liga. If China is successful in its ambitious project, the established hierarchical structure of international soccer could come crumbling down.
By Joseph Mondello
