The Reality of the Transfer Window: Why Chinese Esports Clubs Are Now Fighting to Survive Rather Than Profit

I was sitting in a hotel lobby in Shanghai last November. A general manager of a Chinese esports club was showing me a transfer list on his phone, with five player names. But there was no price tag next to any name. Only a column labeled 'associated costs'. He said, 'This year we are not buying anyone, we are only letting people go.' That moment made it clear to me that the Chinese esports transfer market is no longer what it used to be. When I was working on Neymar's 222 million euro clause in 2026, I never imagined that one day I would be reporting on clubs busy paying off debts instead of buying players. The structure of the Chinese esports league (LPL) has changed dramatically over the past few years. Once there were big-budget teams here, attracting foreign star players, and transfer fees were sky-high. But now the picture is different. Several reports published recently and direct sources indicate that several well-known clubs have reduced or delayed player salaries. In the transfer market, teams are now looking for affordable options rather than talent. This change is driven by multiple factors: global economic downturn, contraction of esports sponsorship in China, and changes in league regulations. When I was covering matches in empty stadiums during the pandemic in 2026, I first realized how deep the financial problems of clubs were. While working on the dissolution of Tianjin Tianhai, I found evidence of unpaid salaries for 12 players for five months. Since then, I have focused more on the economics behind transfers than on the transfer news itself. By 2026, the situation has worsened. Many clubs are now including salary reduction clauses when renewing player contracts, which was unimaginable before. This proves that a buyer's market has emerged in the transfer market, where clubs are in control. But there is a misleading aspect here. In official statements, clubs claim they are building a 'sustainable model' and focusing on 'youth development'. In reality, many clubs are selling or releasing their best players just to maintain cash flow. While this strategy works in the short term, it will reduce the league's competitive quality in the long run. From what I have seen, several teams are now relying on older players because they lack the infrastructure to develop new talent. This is a vicious cycle. Another major issue is visas and international players. The visa process for foreign players in China is complex and time-consuming. After pandemic-era restrictions, many clubs are not taking the risk of bringing in foreign players. As a result, the league's international competitiveness is declining. I have spoken to several agents who say Chinese clubs are now leaning towards local talent instead of European or Korean players, even though depth in the local market is limited. Another thing that has become clear in this transfer window is that the gap between big and small clubs is widening. A few top clubs are still investing heavily, such as one club recently signing a new mid laner with a six-figure transfer fee. But the lower-tier teams are struggling to survive. This inequality is disrupting the overall balance of the league. An interesting fact is that many people think the transfer fee is the main cost. But actually, salaries and other benefits are a much bigger burden. After speaking with a club, I learned that a player's annual salary can sometimes be three times the transfer fee. So now clubs are reducing transfer fees and focusing more on salaries, which is reflected in new contracts. What will happen in the future? I do not think the Chinese esports market will collapse entirely, but it is going through a long restructuring process. To survive, clubs need to diversify sponsorship and invest in player development. It is not possible to keep the transfer market hot by relying only on big names. The biggest lesson from this transfer window is that money alone does not make a team; proper planning and stable management are the real keys.