Unpaid wages and club dissolution.

VHO - The immediate success of the Malaysian national team thanks to its naturalization policy cannot mask the serious crisis facing the country's football.

Former Perak FC player Shivan Pillay

The sudden announcement by Perak FC that it would cease operations at the end of May 2025 not only shocked Malaysian football but also exposed a host of troubling issues regarding financial management, unsustainable operating models, and excessive spending at many professional football clubs in the country.

Since the middle of last year, Perak FC has shown signs of instability with players having their salaries cut by 50%. Center-back Shivan Pillay, a former Malaysia U23 international, shared that he and his teammates have had to tighten their belts, cook their own meals, and struggle to pay rent and car installments.

In March 2025, the situation worsened when the club completely stopped paying salaries. The situation culminated in goalkeeper Haziq Nadzli publicly stating on social media that the management had only offered to pay 20% of the 6.5 months of unpaid wages. On May 25th, Perak FC officially announced its dissolution due to "complete financial exhaustion".

They stated that they had spent over 40 million ringgit in the past three years, including 8 million RM to pay off old debts and 10 million RM annually for team operations. The remaining funds were only enough to repatriate foreign players and partially settle staff debts.

Not only Perak, but Kedah Darul Aman FC was also denied a license to play in the new season due to financial inadequacies. Three other teams, Kuala Lumpur FC, Kelantan Darul Naim FC, and PDRM FC, were only granted conditional licenses and must provide additional financial documentation. The MFL (Malaysian Football League) warned that if they do not meet the requirements promptly, their licenses will be revoked. Late salary payments have become a common occurrence.

KL City FC, the 2021 Malaysia Cup champions, have been owed salaries for the past year. In Sri Pahang, players were only paid their wages right before the National Cup final. Some semi-professional teams, like Perlis United, even sent players to work elsewhere, such as rubber tapping, because they had no income from the club.

Many observers believe the root of the problem lies in clubs overspending, a lack of cash flow control, and a lack of a stable revenue model. Ng Wei Xian, former goalkeeping coach of Perak FC, stated that the club initially promised to build a sustainable youth system, but then rushed into recruiting foreign players in the hope that short-term success would boost revenue.

When expectations aren't met, the consequences are unpaid wages and dissolution. Shahril Mokhtar, Technical Director of Selangor FC, stated: "Spending must be based on a realistic budget. Many clubs nowadays just throw money around without knowing if they have enough to pay for it." Even if the MFL raises the foreign player quota to 15 players, he warned that only teams with a solid financial foundation should pursue that goal.

In response to this situation, Malaysian Sports Minister Hannah Yeoh has called for clubs to be run by people with real managerial and financial capabilities. “If you can’t manage effectively, let someone else do it. Don’t hold onto your position and let football decline,” she stated.

It is clear that Malaysian football needs a comprehensive restructuring of its club operating model, from tightening licensing procedures and ensuring financial transparency to encouraging the development of domestic players instead of relying too heavily on foreign players.

Source: https://baovanhoa.vn/the-thao/no-luong-va-giai-the-clb-149063.html