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CSL Clubs Hit With Double Incentive To Pay Luxury Tax

Cedric Bakambu bought out his Villarreal contract, which could result in sanctions for his new team.GETTY IMAGES

The Chinese FA ruled on the "potential luxury tax implications for transfers to Chinese Super League clubs," according to Jonathan White of the SOUTH CHINA MORNING POST. Clubs that refuse to pay the transfer tax "will be liable for point deductions based on the fee for the player and they will also be unable to register the player with the CFA, rendering them ineligible" for official competition in China and under the Asian Football Confederation. That double punishment "leaves clubs with little option but to accept the luxury levy and pay up." The announcement comes ahead of the "expected confirmation" of Cedric Bakambu’s transfer from La Liga side Villarreal to CSL club Beijing Guoan. Possible points deductions "range from one to 15 points depending on the transfer fee involved," but the CFA announced that transfers "where players buy themselves out of their contracts" -- as Bakambu did at Villarreal -- and deals paid for by third-parties "are also subject to the regulation." Bakambu’s €40M ($49M) release clause "would mean that Beijing Guoan would be liable for a 10-point deduction" (SCMP, 2/13).

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