Two-time Asian Champions League winner Guangzhou FC has been barred from China’s 2025 football season over mounting debts and unpaid wages, alongside two other clubs.

The decision deals another blow to a league struggling with years of financial mismanagement, even as China pushes sweeping reforms aimed at stabilizing finances, tackling corruption, and building a future soccer powerhouse by 2050.

The Chinese Football Association (CFA) announced Monday that Guangzhou FC, Cangzhou Mighty Lions, and Hunan Xiangtao failed to meet financial requirements for the 2025 season due to unresolved debts and unpaid salaries. Meanwhile, 49 other clubs, including top-tier teams Shanghai Port and Shandong Taishan, have been cleared to compete.

A CFA spokesperson told domestic media that reviews of the three clubs’ financial records revealed significant operational risks. Their operators had been listed as dishonest defaulters and failed to provide adequate evidence showing they could resolve outstanding debts or meet their financial obligations.

Following the announcement, the three clubs issued statements declaring their dissolution. “The denial of admission is due to the burden of significant historical debts. The funds raised were insufficient to settle them. We are deeply sorry for this result,” said Guangzhou FC, a two-time Asian Champions League winner and eight-time Chinese Super League champion, in a statement Monday.

The news sparked mixed reactions among fans. While some saw it as an opportunity to reform the struggling sector, others lamented the instability of Chinese football. “Except for a few clubs with a longer history, most teams last only a decade or so. How can we expect a strong performance from football in this short period of time?” read a widely upvoted comment on microblogging platform Weibo, where a hashtag related to the news has amassed over 9 million views.

The admission process for the 2025 season began in October, with the CFA mandating clubs resolve all overdue payments, both domestic and international, by Nov. 25. Failure to meet this deadline would result in exclusion from the new season.

During the public disclosure period, China’s 52 professional football clubs recorded 29 FIFA salary arrears cases, 71 domestic disputes, and 174 complaints, according to the CFA spokesperson. While most cases were resolved by Dec. 25, the CFA pledged to address the remaining disputes as part of its ongoing push to enforce stricter financial regulations and stabilize the league.

In recent years, Chinese football clubs have faced mounting financial crises, driven by exorbitant spending on superstar players, rising operational costs, and sluggish investment amid a weakening economy. The financial strain led to the collapse of Jiangsu FC in 2021, just months after winning the 2020 league title.

This week’s actions are part of ongoing efforts to address deep-rooted corruption and financial instability within Chinese football.

Last September, a two-year investigation revealed widespread match-fixing, bribery, and gambling, leading to lifetime bans for 43 individuals — including high-profile players and officials — and criminal penalties for dozens more.

Editor: Apurva.

(Header image: A Guangzhou FC badge. VCG)