Professional soccer's K League 1 Gwangju FC has issued a statement in response to violations of the K League's financial stability system introduced by the Korea Professional Football Association.
"As a civic club, Gwangju has achieved successive achievements such as winning the 'Hana Bank K League 2 2022', the 'Hana Bank K League 1 2023' Final A, and advancing to the Asian Football Confederation (AFC) Champions League Elite (ACLE) in the 2024-2025 season," the club said on its website on Friday, explaining that its club and player operating expenses have increased by 152 percent in two years.
Gwangju said club and player operating expenses increased 36% year-on-year in 2023 and 84% year-on-year this year.
"The federation's finance committee is concerned about the financial situation of the K League, but our club is pushing to become a prestigious club with a new spirit of challenge, so it is inevitable that the budget will increase," he said.
"We explained our business activities to the Finance Committee in February, and in consultation with the players, we have already completed the composition of the squad (from 33 to 39 players) in preparation for the ACLE," he added.
"The club is currently working on various measures to stabilize its finances and is doing its best to continue to operate the club," said Gwangju, asking for the fans' interest and cooperation.
The Federation Finance Committee was established under the K League Financial Stabilization System, which was introduced last year.
The financial stability system includes the following: ▲ Each club must achieve a break-even point every year ▲ Player expenses cannot exceed 70 percent of total revenue ▲ In the case of a fully capitalized club, the club must submit an improvement plan and resolve it within the deadline set by the federation.
"In January, the finance committee reviewed this year's budgets of 25 professional soccer clubs, and only Gwangju was rejected without approval," a league official explained to News Corp. on Jan. 12, adding, "The club submitted a budget with too much expected income for this year and was not approved."
The federation asked the club to resubmit a more realistic budget, but the revised proposal was also rejected, he added.
If Gwangju fails to meet its projected income before the summer transfer window opens on July 20, it will not be able to register any new players, except for those returning from military service or loans.
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"As a civic club, Gwangju has achieved successive achievements such as winning the 'Hana Bank K League 2 2022', the 'Hana Bank K League 1 2023' Final A, and advancing to the Asian Football Confederation (AFC) Champions League Elite (ACLE) in the 2024-2025 season," the club said on its website on Friday, explaining that its club and player operating expenses have increased by 152 percent in two years.
Gwangju said club and player operating expenses increased 36% year-on-year in 2023 and 84% year-on-year this year.
"The federation's finance committee is concerned about the financial situation of the K League, but our club is pushing to become a prestigious club with a new spirit of challenge, so it is inevitable that the budget will increase," he said.
"We explained our business activities to the Finance Committee in February, and in consultation with the players, we have already completed the composition of the squad (from 33 to 39 players) in preparation for the ACLE," he added.
"The club is currently working on various measures to stabilize its finances and is doing its best to continue to operate the club," said Gwangju, asking for the fans' interest and cooperation.
The Federation Finance Committee was established under the K League Financial Stabilization System, which was introduced last year.
The financial stability system includes the following: ▲ Each club must achieve a break-even point every year ▲ Player expenses cannot exceed 70 percent of total revenue ▲ In the case of a fully capitalized club, the club must submit an improvement plan and resolve it within the deadline set by the federation.
"In January, the finance committee reviewed this year's budgets of 25 professional soccer clubs, and only Gwangju was rejected without approval," a league official explained to News Corp. on Jan. 12, adding, "The club submitted a budget with too much expected income for this year and was not approved."
The federation asked the club to resubmit a more realistic budget, but the revised proposal was also rejected, he added.
If Gwangju fails to meet its projected income before the summer transfer window opens on July 20, it will not be able to register any new players, except for those returning from military service or loans.
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