Following the controversy over the unpaid solidarity contribution, now there is a violation of the financial stability regulations. Gwangju FC issued another official apology just a week later and bowed their heads.
On the 29th, Gwangju conveyed through its official channel, "We deeply feel responsible for failing to comply with the financial stability regulations of the Korea Professional Football League," expressing their apologies to fans and related agencies. This is just eight days after they apologized for the unpaid solidarity contribution concerning Asani, who had been banned from player registration by the Fédération Internationale de Football Association (FIFA) on the 21st.
Gwangju stated in this apology that, "In 2024, we experienced a net loss of approximately 2.3 billion won, failing to meet the breakeven point indicators." The Korea Professional Football League operates a 'financial stability system' to ensure that club revenues do not exceed expenditures, which is considered essential for sustainable operations.
Gwangju pointed to the inevitable expansion of the squad size and rising personnel costs associated with their entry into the AFC Champions League Elite (ACLE) as causes of the losses. Conversely, they explained that the increase in revenues from matchday receipts, sponsorships, and merchandise sales was insufficient, ultimately resulting in expenditures exceeding revenues.
The club stated, "Although various revenues such as support from Gwangju Metropolitan City, matchday receipts, merchandise sales, and transfer fees increased from approximately 15 billion won in 2023 to about 21.4 billion won in 2024, we ultimately failed to meet the financial stability standards. We feel a heavy sense of responsibility."
The issue is that this is not the first time. Gwangju was sanctioned last year for violations of the financial stability system. At that time, the Korea Professional Football League imposed a ban on player registration during the summer transfer period (June 20 to July 31) until actual revenues reached the budget level. This season, the league's finance committee has also discussed Gwangju's financial situation and is in a multi-faceted review regarding whether to refer the case to the disciplinary committee. If referral is confirmed, it will be the first case among K League clubs to be brought before the disciplinary committee due to the financial stability system.
Gwangju promised, "Starting in 2025, we prioritize financial stability as a primary task, reducing unnecessary budgets and focusing on expanding our own revenues," adding, "We will repay our debts annually and strive to become a responsible club that does not disappoint fans anymore."
The reality of Gwangju's management continues to be controversial day after day. Without rapid reform and tangible improvements by the club, it seems unlikely to restore fan trust.
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