Chinese Super League (CSL) leaders Beijing Guoan are facing a significant financial crisis, with their team bus seized due to mounting debt issues. This has resulted in the players resorting to using shared bikes to return from training sessions, highlighting the severity of the situation.
The club's financial woes stem from its parent company, Sinobo Group, a real estate firm that holds a 64% stake in Beijing Guoan. Sinobo Group is reportedly burdened with debts exceeding 3.68 billion yuan (US$502 million). This massive debt has led to the seizure of the team bus, a tangible consequence of the club's financial instability.
The incident has sparked widespread discussion and concern among fans and within the Chinese football community. Pictures circulating on social media depict the team bus being towed away with an official seal on its door, symbolizing the legal action taken against the club due to unpaid debts.
While the seizure of the team bus is a recent development, Beijing Guoan's financial difficulties are not entirely new. In 2019, the club's parent company, Citic Guoan Group, faced a debt crisis that required Bank of Beijing to cover 2.5 billion yuan (US$360 million) of its debt. At that time, Citic Guoan's liabilities-to-assets ratio had reached 85%, with total outstanding debt of 178.3 billion yuan.
The current crisis underscores the broader financial challenges within Chinese football. Several clubs have faced financial difficulties in recent years, with some even collapsing due to unsustainable debts. The COVID-19 pandemic and the real estate crisis in China have exacerbated these issues, placing significant financial pressure on clubs and their backers.
Despite these challenges, Beijing Guoan has a long and storied history in Chinese football. The club has a dedicated fan base, with an average attendance of 40,000 at home games. In 2017, the club was valued at US$807 million, surpassing the valuation of Italian giants AC Milan. However, on-field success has been limited, with the club last winning the league title in 2009.
It remains to be seen how Beijing Guoan will navigate this current financial crisis. The seizure of the team bus serves as a stark reminder of the financial realities facing many Chinese football clubs. The club's ability to resolve its debt issues and ensure the continued operation of the team is crucial for the stability and future of Chinese football.
