Gwangju FC’s finances are at the center of controversy. The KFA recently rejected Gwangju’s budget proposal after the Finance Committee reviewed it earlier this year, concluding that the club had overstated its revenue. In principle, the KFA is supposed to ban players from registering with the organization. However, many of the players were already under contract at the time. Instead, the clubs were banned from signing players for an additional registration period (during the season) until their actual income reaches the stated level.
Last year, the federation created a new system to strengthen its finances. It was fully implemented this year. If Gwangju fails to meet the federation’s standards by increasing its income, it will not be able to sign additional players in the summer transfer market. The supplementary registration will be held from the 20th to the 31st of next month. Guangzhou will be the first team to be subject to the financial consolidation system.
The federation’s intentions are clear. The idea is to change the revenue structure of clubs that rely on parent companies and local governments. It also aims to address the problem of clubs overspending on player expenses. According to the federation, the finance committee found Gwangju’s projected player transfer fees and advertising revenues to be unrealistic, and it also found the club in violation of the rules during an “actual expenditure inspection review” of each club last month.
“We fully sympathize and understand the federation’s intentions. However, we think the timing was not good. We made investments last year to improve our performance. We are also working hard to increase our revenue.” Gwangju, led by Lee Jung-hyo, finished third in the K League 1 last year. The club qualified for the Asian Champions League (ACL) for the first time in its history.
Municipal clubs live with financial problems. It is not uncommon for them to apply for a “supplementary budget” after the summer. The situation in 먹튀검증 Gwangju is not much different. However, there is a sense of complacency. “Gwangju seems to be expecting a supplementary budget, especially since they are going to the ACL this year, so there may be a sense of complacency that the city will not turn a blind eye,” said an official.
The fiscal consolidation system has been adopted by leagues around the world, albeit under different names. In the English Premier League (EPL), the penalties have included point deductions. In April, the EPL’s independent committee found Everton in breach 카지노사이트 순위 of the Profitability and Sustainability Regulations (PSR) for the 2022-2023 season, resulting in a points deduction. Reigning champions Man City are also facing disciplinary proceedings for breaching Financial Fair Play (FFP). Hwang’s club, Wolverhampton, is also reportedly being investigated for PSR violations.
Gwangju may not be able to register players depending on the situation. This is only a first warning. According to Article 19 of the Financial Reorganization Regulations, if a club receives two or more of the same type of corrective order in the same period, it will be subject to the more severe corrective order. In the event of further persistent or serious non-compliance, the Finance Committee may request a penalty committee referral to the Federation Secretary General.