Eight years of the Chinese Super League’s golden dollar bubble, from the Oscars to the dissolution of the club

In February 2017, Shanghai SIPG spent 60 million euros to buy Brazilian player Oscar from Chelsea. With an annual salary of 24 million euros after tax, he became one of the highest-paid players in the world at the time. In the same year, Guangzhou Evergrande spent 42 million euros to buy Argentinian player Tevez from Inter Milan. The Chinese Super League has suddenly become one of the richest leagues in the world, and European clubs are worried about a collective loss of stars. But five years later, in 2022, many Chinese Super League clubs will not be able to pay wages or even dissolve. It only took 8 years for the CSL gold-dollar bubble to go from its peak to its collapse.

The Chinese Super League Golden Dollar Revolution from 2013 to 2021 is a special period for Chinese football. Massive capital injections from real estate companies and state-owned enterprises have suddenly made Chinese clubs one of the biggest buyers in the global transfer market. But this gold-dollar revolution was built on real estate economics and political support, and when these two pillars became unstable, the entire system collapsed. Understanding the Chinese Super League Jinyuan is also a key case for understanding the relationship between sports and economic cycles.

The early history of the Chinese Super League

League A, the predecessor of the Chinese Super League, was established in 1994. In the early days, they were mainly clubs sponsored by state-owned enterprises. From 1996 to 2002, Dalian Wanda won five consecutive championships and was the strongest team in Class A. In 2004, League A was reorganized into the Chinese Super League. In the early days, the level of the Chinese Super League was limited, and most of the foreign players were second- and third-rate European players. The Chinese national team entered the World Cup for the first time in 2002 but lost all three group matches without scoring a single goal. During this period, the Chinese Super League was the second-tier league in Asia.

The rise of Guangzhou Evergrande in 2010

In 2010, real estate giant Evergrande Group took over Guangzhou Football Club, and Xu Jiayin invested a lot of money. Introduced Brazilian international Conca and Argentinian player Barrios. Hire Italian coach Lippi (2006 World Cup winning coach). In 2011, Evergrande won the Chinese Super League for the first time. When Evergrande won the AFC Champions League in 2013, it was the first time in many years for a Chinese club to become the champion in Asia. This is the beginning of the Super League Golden Dollar.

Crazy signings from 2013 to 2017

From 2013 to 2017, the Chinese Super League entered the era of gold and dollar madness. Clubs bring in foreign players regardless of cost. In 2016, Jiangsu Suning spent 50 million euros to buy Ramirez from Chelsea. In the same year, Shanghai SIPG bought Hulk from Charlton for 35 million euros. In 2017, Dalian Yifang spent 24 million euros to buy Carrasco and 44 million euros to buy Carrasco. 2017 was the craziest year for Chinese Super League signings, with record-breaking transfers happening almost every week. The offer from the Chinese club was difficult for European clubs to refuse.

Astronomical figures for player earnings

The income of Chinese Super League players reached its peak in 2017. The annual salary of top players such as local players Wu Lei and Gao Lin exceeds 10 million euros, which is 5 to 10 times that of European players of the same level. Foreign players have higher incomes, with Oscar, Tevez, and Hulk all earning more than 20 million euros in annual salary. This kind of income makes local Chinese players lose the motivation to develop in Europe, which in turn hinders the improvement of the level of the Chinese national team.

Support for real estate economy

The fundamental support for the Chinese Super League Gold Dollar is China’s real estate economy. Real estate giants such as Evergrande, Wanda, Greentown, China Fortune Land Development, Suning, and R&F are the club's largest investors. The purpose of real estate companies investing in football is not to make money but government relations and brand value. The local government's land transfer allows real estate developers to make money, and the real estate developers invest in football to repay the government. This cycle closely binds the budgets of Chinese Super League clubs to the real estate economy.

Government salary restrictions starting in 2017

The Chinese government began to realize the risk of the gold dollar bubble in 2017. The Chinese Football Association has introduced policies such as signing adjustment fees, salary limit orders, and restrictions on the number of foreign players. The signing adjustment fee stipulates that any foreign player transfer fee exceeding 45 million yuan (approximately 6 million euros) must pay double tax to the Chinese Football Development Fund. This has led to a sharp reduction in foreign imports. However, high-paid foreign players with existing contracts are still playing in the Super League until their contracts expire.

The chain reaction of the real estate thunderstorm in 2020

In 2020, China's real estate economy will enter a downward cycle. Evergrande and China Fortune Land Development were hit hard one after another. Real estate companies cannot afford to continue investing heavily in football. The disbandment of Jiangsu Suning in 2021 shocked the world. The team that had just won the Chinese Super League championship disappeared. Chongqing Dangdai, Hebei team, Wuhan team, and Shenzhen team have been disbanded or divested. The number of Chinese Super League clubs has been reduced from 16 to 12 and then to 10. Most of the clubs from the Jin and Yuan era have disappeared.

Player's Dilemma

The plight of foreign aid is particularly serious. Many foreign players sign 3 to 5-year contracts in the Chinese Super League but the clubs are unable to pay their wages. Some foreign players were forced to accept salary cuts or free transfers. Oscar stayed in Shanghai after taking a salary cut, and Tevez had already returned to Argentina. Carrasco returned to Atletico Madrid at a low price. These foreign players returned to Europe and found that they had not played in top games for several years and their market value had shrunk significantly. The cost of Chinese football adventures is mainly borne by these foreign players.

The frustration of the Chinese national team

During the Jin and Yuan era, the Chinese national team did not benefit but regressed. The high salary and few appearances of local players have made the level of local players not advance but retreat. Failed in 2018 World Cup qualifying. In the top 12 of the 2022 World Cup Qualifiers in Qatar, the Chinese team lost to weak teams such as Vietnam many times and ultimately failed to advance. This is one of the lowest points in the history of the Chinese national team. The failure of the Jin-Yuan Revolution became the core of Chinese football’s reflection.

Comparison between the Chinese Super League gold dollar and the Saudi gold dollar

In 2023, the Saudi League will start a gold-dollar revolution. Many analysts compare the Chinese Super League and Saudi Arabia. What they have in common: They all rely on national or giant corporate support, they all introduce top stars, and they all try to improve the league level within 5 to 10 years. Differences: Saudi Arabia relies on its oil economy and long-term strategic support for the 2034 World Cup, while the Chinese Super League relies on its real estate economy for short-term prosperity. The Saudi gold dollar may outlast the Chinese Super League. But any gold-dollar revolution requires the development and cooperation of local players, otherwise it will just pile up foreign aid.

The current situation and future of Chinese football

In 2024, the Chinese Super League has fallen significantly from its peak of gold and yuan. The club's budget was halved. The level of foreign aid dropped to the second or third rate. The income of local players has dropped but is still higher than the same level in Europe. The Chinese Football Association launched youth training reforms in the hope of fundamentally improving the level. The Chinese men's national football team in 2024 is still struggling to qualify for the 2026 World Cup. Understanding the rise and fall of the Chinese Super League Jinyuan is also a key case for understanding the relationship between Chinese sports and the economy. From rise to collapse in 8 years, what the Chinese Super League Jinyuan left behind was not a championship but a lesson: football cannot rely solely on money, but requires long-term construction of culture and system.