Guangzhou Evergrande players have taken a sharp cut in salary.
Yesterday, Guangzhou Football Club issued the "Football Club Player Set and Salary Standard", stipulating that the annual salary of the club's first-team players is 60,000 to 600,000 yuan before tax, and the main salary is reduced by nearly 90%.
2 years ago, the annual salary was 5 million, and the main players were cut by nearly 90%
"The cap annual salary of the main players was reduced from 5 million yuan to 600,000 yuan, a decrease of 88%."
According to Xinhua News Agency, on the 16th, Guangzhou Football Club (formerly Guangzhou Evergrande Football Club) issued the "Football Club Player Quota and Salary Standards", which formulated the club's player establishment and salary plan. The standard shows that the starting salary of the team members is 60,000 yuan, and the maximum annual salary is 600,000 yuan before tax.
Some media said that 2 years ago, the starting salary of the first-line players of the Guangzhou team was 96,000 yuan per year, while the annual salary of the main team members was 5 million, and the salary reduction was 88%.
According to the report of Beijing Youth Daily, taking the "highest annual salary before tax of 600,000 yuan for first-team players" mentioned in the "salary standard" as an example, assuming that guangzhou team has accumulated 30 registered players in the first team in the 2022 season, the cumulative annual salary is only 18 million yuan before tax, which is less than the salary (bonus) amount of an international footballer in the whole season when the club won two AFC Champions League championships in 3 years.
At the same time, Guangzhou Football Club issued an announcement on the 16th to terminate contracts with five naturalized players Axon, Gaulat, Alain, Luo Guofu and Fernando.
According to media analysis, Guangzhou Football Club, as the 8th champion of the Chinese Football Association Super League in history, may become a weather vane in the Chinese Football Association Super League, causing more football clubs to reduce salaries.
The salary cut of the men's football team has actually been foreshadowed.
Due to the long-term unsatisfactory performance of the men's football team in the game and the excessive salaries of the first-line players, the Chinese Football Association convened a video seminar in April 2020 for representatives of professional league clubs at all levels to reach a consensus on reasonable salary cuts, and there has been no follow-up since then.
But just this year, in the 7th round of the 2022 Qatar World Cup Qualifier Asian Round of 12, which ended on January 27, China lost 0:2 to Japan.
On February 1, the 8th round of the Asian Group B match of the World Cup qualifiers began, and the Chinese men's football team played against Vietnam. In the end, the national football team lost 1:3 to Vietnam, completely missed the Qatar World Cup, and public opinion was in an uproar thereafter.
After the news of the salary limit came out, netizens expressed their support.
Delisting, loss... Evergrande Group is in crisis
China Evergrande Group is also in crisis itself.
According to Kerry research data, Evergrande's annual sales in 2021 will be 440 billion yuan, ranking fifth among domestic housing enterprises, down nearly 40% compared with the sales of 732.3 billion yuan in 2020.
Since January 2021, China Evergrande's stock price has fallen for a long time, and since Guangzhou Football Club released the "Football Club Player Fixing and Salary Standards" yesterday, the stock price has fallen to HK$1.66 this morning. Down 1.19% from the previous day.
Previously, when the football club under China Evergrande Group was listed, the loss had exceeded 7.6 billion.
According to the official website of Guangzhou Football Club, on March 1, 2010, Evergrande Group bought out all the equity of Guangzhou Football Club for 100 million yuan, and the club officially changed its name to Guangzhou Evergrande Football Club. Since then, it has been renamed Evergrande Taobao Club and Guangzhou Football Club.
In 2015, Evergrande Taobao Club was listed, and by the end of 2020, its market value was as high as 19.04 billion yuan, ranking third in the total market value of the New Third Board.
However, the company's announcement shows that from 2015 to 2019, Evergrande Taobao Club's net profit continued to lose, coupled with a loss of more than 1 billion yuan before the listing, and its loss in 7 years exceeded 7.6 billion yuan.
Due to the continuous losses, Evergrande Taobao Club "wore a hat" on May 3, 2018 to become ST Hengbao and was implemented as a risk warning. In January 2021, the above clubs were officially renamed Guangzhou Football Club and officially delisted in March.
On January 26, China Evergrande Group announced that it had held a conference call with the group's creditors.
Evergrande Group said it would assess the group's situation and formulate a restructuring plan to protect the rights of stakeholders. To this end, the company is promoting the auditors to carry out relevant work, and will continue to listen carefully to the opinions and suggestions of creditors, and strive to propose a preliminary restructuring plan in the next six months.
However, it remains to be seen whether the restructuring plan can help Evergrande Group survive the crisis. #Guangzhou Evergrande ##Guangzhou Evergrande salary cut ##广州 #
Consumer Big Mouth/Wen Wang Naixin Comprehensive Xinhua News Agency, China Fund News, Daily Economic News, China News Network, Beijing Youth Daily, Financial Associated Press, Cover News, Yangtze River Daily, etc
Image source丨 Oriental Fortune Network, Weibo screenshot, Weibo @ Guangzhou Football Club, National SME Share Transfer System, Kerui Data, etc