The Korea Football Association (KFA) Club Licensing team presented the K League Financial Stabilization Scheme at the 2023 AFC Professional Football Seminar.
The ‘2023 AFC Professional Football Seminar’ was held on September 11 and 12 at the AFC House in Kuala Lumpur, Malaysia, and was attended by more than 80 representatives from AFC member countries who are responsible for club licensing and planning the development of professional football in their countries. The seminar is an opportunity for AFC member states to share knowledge and experience, discuss and educate each other on the latest developments in the Asian club football system.
Representing the K League at the seminar were Lim Dong-hwan, Head of Club Licensing, Jang Ho-kwang, and Lee Young-seop, who gave a presentation on the second day of the seminar to introduce the K League Financial Stabilization System.
The K League Financial Stabilization System is a system that the league has been implementing since 2023, and was introduced in 2020 to review the overall financial situation of the league and establish the sustainability of the league and its clubs due to the economic crisis caused by the COVID-19 pandemic. It aims to identify and resolve typical financial issues across the K League, such as club revenue structure models that rely on parent companies and local governments, overspending on player costs, and deteriorating financial health.
The main contents of the ‘K League Financial Stabilization System’ are that ▲ each club must achieve a break-even point every year, ▲ player expenses cannot exceed 70% of total revenue, and ▲ fully capitalized clubs must submit an improvement plan and resolve it within the deadline set by the federation.
In particular, the ‘K League Financial Stabilization System’ is a proactive control model that borrows from the financial rules of most leagues around the world, including UEFA, and prevents deficits from occurring by monitoring player registration based on the club’s budget. This is similar to La Liga’s “economic control,” which quickly improved the financial situation of clubs through cost control. 바카라사이트
Meanwhile, after the announcement of the League’s K League Financial Stabilization System, club licensing representatives from various countries, including many in the Middle East, actively asked questions and showed a lot of interest.
The announcement provided an opportunity to publicize the advanced financial rules of the K League, and the league plans to actively share and cooperate with other Asian leagues in the future.