A soccer club owned by defaulted Chinese developer Kaisa Group Holdings Ltd. has been disbanded after failing to secure a license from the Chinese Football Association for the new season because of debt, reports Caixin. Shenzhen Football Club, which won the first Chinese Super League in 2004, announced Monday that serious historical debts had become unsustainable and forced its closure.
The club owes RMB 800 million to RMB 900 million ($111 million to $125 million) of debt, including unpaid salaries to players, Caixin learned from sources. Ten of the club’s 50 players are foreign players that the club signed with large salaries, people close to the club told Caixin.
Kaisa Group became the largest shareholder of the club in 2016 and has poured more than RMB 100 million into it over the years.