Asian Champions to Bust: The Fall of Guangzhou FC

By Billy Jiang, January 7, 2025

On January 6, 2025, the Chinese Football Association (CFA) released the admission list for the upcoming season, notably excluding Guangzhou FC, Cangzhou Mighty Lions, and Hunan Xiangtao.

Official announcement by Guangzhou FC. Image via Guangzhou FC

Later that evening, Guangzhou FC, formerly known as Guangzhou Evergrande, announced its official dissolution, citing insurmountable historical debts that rendered the club unable to meet the CFA's financial requirements.

A Decade of Dominance Ends

Established in 1954 as the Guangzhou Football Team, the club underwent several transformations before becoming Guangzhou Evergrande in 2010.

Backed by substantial investments from the Evergrande Group, the team achieved unprecedented success:

Eight Chinese Super League (CSL) titles
Two AFC Champions League victories (2013, 2015)
Four Chinese FA Super Cup wins
Two Chinese FA Cup titles

AFC Champions League victory in 2013. Image via CGTN

This era, often referred to as the 'Golden Decade,' saw Guangzhou FC set benchmarks in Chinese football, attracting international talents and renowned coaches like Marcello Lippi, Fabio Cannavaro and Luiz Felipe Scolari.

Financial Troubles & Decline

The club's fortunes began to wane as its parent company, China Evergrande, faced severe financial difficulties starting in 2021.

The withdrawal of financial support led to the departure of key players and coaching staff, culminating in the team's relegation from the CSL in 2022.

Despite efforts to stabilize, Guangzhou FC failed to secure the necessary funds to clear its debts, resulting in its exclusion from professional leagues for the 2025 season.

A Broader Crisis in Chinese Football

Guangzhou FC’s dissolution is not an isolated incident, but rather part of a troubling trend in Chinese football.

Since 2020, approximately 30 professional clubs have folded due to financial insolvency, mismanagement, and the broader economic downturn.

The collapse of these clubs underscores systemic issues within the Chinese football ecosystem, particularly the unsustainable 'golden dollar football' model that prioritized short-term success over long-term stability.

Chinese football fans display gallows humor with a meme of defunct clubs

The fall of Guangzhou FC serves as a cautionary tale for Chinese football.

It highlights the perils of over-reliance on corporate sponsorships without establishing independent revenue streams such as merchandising, broadcasting rights, and grassroots support.

As the Chinese football community reflects on this loss, there is a pressing need to adopt a more sustainable and holistic approach to the sport’s development, focusing on youth development, financial transparency, and community engagement.

While Guangzhou FC’s exit marks the end of a remarkable chapter in Chinese football, it also presents an opportunity for introspection and reform.

Hopefully, the lessons learned from this downfall can pave the way for a more resilient and prosperous future for football in China.

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[Cover image via Guangzhou FC]