March 5, Beijing - As night falls, a piece of news stirs up a thousand waves in the Guangzhou soccer circle. According to the evening news, Guangzhou Pharmaceutical Group has unexpectedly faltered in the process of negotiating for a stake in the Guangzhou team, and the negotiation has broken down. In the new season, the control of the Guangzhou team remains firmly in the hands of Evergrande Group.
Rewind to the end of last year's season, the relevant departments of Guangzhou Municipality quickly set up a task force to promote the equity reform of Guangzhou's two top clubs. At that time, the Guangzhou Pharmaceutical Group showed strong interest in the Guangzhou team, while the Guangzhou Automobile Group was in love with Guangzhou City FC.
However, not long ago, the Guangzhou team suddenly announced the implementation of a strict salary limit policy, which triggered extensive discussions in the industry. The setting of a top salary of 600,000 yuan has made former stars and national team players seek a way out. This massive salary cut also reveals the twisted course of Guangzhou team's stock reform from the side.
Oriental Sports Daily revealed that Guangzhou team's share reform has been slow and problematic. Two of the major problems are particularly prominent: the huge debt carried by the club and the high salaries of the players. It is reported that the reform program proposed to separate the club's equity and debt handling. The Guangzhou Pharmaceutical Group, which is interested in taking over the club, is only willing to take over the team and promises to keep the expenditure within the 300 million yuan per year limit set by the Chinese Super League Association. For the club's huge debt, including unpaid salaries, Guangzhou Pharmaceutical Group made it clear that it was unwilling to take on the responsibility.
Guangzhou Pharmaceutical Group's conditions are far from Evergrande's expectations. Evergrande wanted to still hold 30% of the club's equity after the share reform, with the new enterprise taking on all the debt and retaining part of the original management team. However, Guangzhou Pharmaceutical obviously can not meet these harsh requirements.
With the Guangzhou team's shareholding reform in a deadlock, Evergrande Group had to launch a "Plan B", requiring the club to cut its annual operating expenses to 15 million yuan, and plans to use young players and football school stars to participate in the Chinese Super League in the new season.
Last night, the media broke out the latest development of the Guangzhou team's share reform, the situation seems to have been clear: the prospect of Guangzhou team's share reform is worrisome, before the two local enterprises interested in joining has turned to Guangzhou City. In the new season, Guangzhou team will still be wholly owned by Evergrande Group if there is no accident. (Source: DD)
