The Shanghai Sports Bureau expressed its wish to keep Shanghai Shenhua FC in town, while urging the club’s shareholders to sort out their economic problems.

"Currently, Shenhua’s application to move out of Shanghai cannot be approved due to the lack of necessary paperwork," Li Yuyi, head of Shanghai Sports Bureau, said yesterday.

"The sports bureau hopes Shenhua will stay in Shanghai, which is also the wish of local fans, who have been following the team since its establishment in 1994," Li said. "As far as I know, it is not the club’s wish to shift base, but they have been pressured by financial burdens."

"The club’s current task is to settle its internal problems including differences among its shareholders, who should work together to solve the financial problems based on legal market mechanisms."

Shenhua has six investors — Shanghai Electric Group, Shanghai SVA Group, Huangpu District State-owned Assets Supervision and Administration Committee, Shanghai Media & Entertainment Group, SVA Information Industry Co Ltd, and Zhu Jun, the club’s biggest shareholder.

The club encountered financial problems last season before a Yunnan-based enterprise bailed it out with a 30 million yuan (US$4.95 million) investment. In return, the club was required to shift to Kunming, capital city of Yunnan Province, for the next three years.

Shenhua submitted applications to relocate to Kunming to both the Shanghai Football Association and China Football Association last week.

However, the application was not approved by the SFA, which said the club still had to provide more paperwork proving all six shareholders agreed to the relocation and proof its debts had been cleared.

According to CFA regulations, if Shenhua FC wants to relocate, its managing company Shanghai Shenhua Liansheng FC Co Ltd will have to cancel its registration in Shanghai and then register in Kunming. However, the SFA said the cancellation can not be completed until the shareholders provide the paperwork listed above.

Soccer News reported yesterday that Shenhua FC is planning to appeal to the CFA so that it can move to Kunming.

The Chinese Super League’s deadline for registration for the 2014 season is January 16. If Shenhua’s appeal is accepted, the deadline will be extended.

Li said the bureau has helped Shenhua, including preferential policies to its shareholders enterprise when it encountered financial difficulties. The bureau also helped Shenhua coordinate player transfers with other clubs, added Li.