Gwangju FC wrote an apology again... This time, 'non-compliance with financial consolidation' → The Federation reviews the reward and punishment committee's measures
Gwangju FC wrote an apology again... This time, 'non-compliance with financial consolidation' → The Federation reviews the reward and punishment committee's measures
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Gwangju FC issued an apology as it violated fiscal consolidation regulations.
Gwangju said on its official channel on the 29th, "Gwangju FC is deeply responsible for the failure to comply with the Korean Professional Football Federation's fiscal consolidation regulations, and I sincerely apologize to fans and related organizations who love soccer."메이저사이트
"The club failed to comply with the fiscal consolidation system (profit and loss break index), which stipulates that spending does not exceed income due to a net loss of about 2.3 billion won as a result of fiscal management in 2024. This is the result of a lack of corresponding income, while essential expenditures such as expanding the size of the team and rising labor costs have increased as a result of advancing to the AFC Champions League Elite (ACLE)."
"The club has increased by 6.4 billion won over the past year from about 15 billion won in 2023 to about 21.4 billion won in 2024, along with the team's performance, income from Gwangju Metropolitan City support, entrance profits, product sales, and transfer fees, but has nevertheless failed to comply with the financial consolidation system," he explained.
Gwangju failed to comply with the fiscal consolidation system for two consecutive seasons. Last year, Gwangju was banned from recruiting additional players after excessively raising income in the budget submitted to the finance committee of the professional soccer federation. The finance committee confirmed that Gwangju failed to comply with the fiscal consolidation system while checking the finances of K-League clubs on the 27th, and is discussing measures such as referral to the reward and punishment committee.
Gwangju has been mired in controversy day after day. Recently, the organization has been mired in an unprecedented controversy over the failure to pay solidarity contributions. In August last year, the organization had to pay 3,000 U.S. dollars in solidarity contributions to FIFA, which was generated by recruiting players, but the payment was not made due to administrative error. FIFA announced a ban on registration of players in December last year, but Gwangju and the Korea Football Association (KFA) only recently recognized this fact. The KFA has emphasized its position to protect Gwangju, but is waiting for the judgment of FIFA and the Asian Football Confederation (AFC).
Gwangju FC is deeply responsible for the failure to comply with the Korean Professional Football Federation's fiscal consolidation regulations, and we sincerely apologize to fans and related organizations who love soccer.
The club failed to comply with the fiscal consolidation system (profit-loss break-off indicator), which stipulates that expenditures do not exceed income due to a net loss of about KRW 2.3 billion as a result of its 2024 fiscal operation.
This is the result of a corresponding lack of income, while essential expenditures such as increased squad size and higher labor costs have increased as a result of advancing to the AFC Champions League Elite (ACLE).
Along with the team's performance, the club's income from Gwangju Metropolitan City support, admission revenue, product sales, and transfer fees has increased by 6.4 billion won over the year from about 15 billion won in 2023 to about 21.4 billion won in 2024, but it has nevertheless failed to comply with the financial consolidation system.
I feel a heavy responsibility for these results and would like to apologize once again to the citizens and fans who love the club.
Starting in 2025, the club has made fiscal consolidation a top priority and is committed to ensuring that no further debt is incurred by reducing unnecessary budgets and expanding its own income. I would like to express my gratitude that I will pay off my debts on an annual basis.
Once again, I would like to deeply apologize to all stakeholders, and I will do my best to become a responsible club that is not ashamed of our fans.