The abrupt disbandment of arguably China's most decorated soccer club, because of its financial problems, has blown the final whistle on the big spending era in Chinese soccer, with the domestic leagues in desperate need of a more sustainable and reasonable approach.

An eight-time Chinese Super League champion and two-time winner of the AFC Champions League, Guangzhou FC, formerly known as Guangzhou Evergrande, announced on Monday that the club had failed to meet the Chinese Football Association's entry financial requirement for the 2025 season and, thereby, was being disbanded, ending a 32-year saga that has brought plenty of joy and pride for Chinese fans on the continental stage.

Since its relegation from the top-flight Chinese Super League, or CSL, to the second-tier China League One at the end of 2022, when parent company Guangzhou Evergrande Real Estate Group encountered financial problems, the club had struggled with heavy debts, underlined by a series of legal disputes with players over unpaid salaries.

Two other clubs announced their disbandment on Monday, having also failed to meet the requirements for the new season; CLS's Cangzhou Mighty Lions and China League Two team Hunan Billows.

"Due to heavy financial burdens resulted from previous seasons, the club could not pay off all the debt by the deadline. ... We express our sincere apology to all the supporters from across the community and we appreciate the understanding and forgiveness of all the fans very much," said an official statement released by Guangzhou FC on Monday.

Relying on once cash-rich investors and owners, CSL clubs enjoyed a short-lived success on the continental stage in the 2010s, highlighted by Guangzhou FC's AFC Champions League wins in 2013 and 2015, bolstered by expensive lineups filled with high-profile imports from Brazil.

The lure of Chinese clubs, funded by millionaire owners from the retailing and real estate industries, proved too lucrative for even some of Europe's biggest stars to turn down in 2016, when, according to German sports website Transfermarkt, in the winter transfer window CSL clubs collectively spent a staggering total of 334 million euros ($347 million), the highest of any league in the world at that time.

The likes of former Argentina international Carlos Tevez, Belgian star Axel Witsel, and Brazilian internationals Oscar, Alexandre Pato and Paulinho all joined the top-flight Chinese league on staggering transfer fees.

As a symbol of the spending spree, last month saw former Chelsea midfielder and a member of Brazil's 2014 World Cup squad Oscar leave Shanghai Port FC to return to Brazil, eight years after joining in a transfer worth a CSL record 60 million euros in 2016.

Now, with almost no big-name expensive imports plying their trade in China, the CFA has called on all domestic clubs to invest reasonably, and to focus more on youth development and more sustainable operations for long-term success.

The CFA on Monday announced a list of 49 clubs which have passed its financial review to be eligible to compete in the top three tiers of the country's league system in the new season.

"Only by setting sights on the long term, keeping the financial operation in a healthy status and investing in youth with patience should clubs build a robust future," the CFA said in a statement.