The government has once again failed to implement the stringent provisions of the debt repayment plan for football clubs, despite the clubs’ non-compliance with the agreed terms.
The government did not activate the measures outlined in the plan, even though football clubs have not settled their accumulated debts, which total €32.2 million. Instead, new debts have been incurred, including an additional €4.8 million in tax liabilities. The clubs have been granted an extended grace period, effectively receiving a reprieve.
According to sources, a few weeks ago, the Ministry of Finance issued certifications to the clubs, falsely assuring that they were adhering to the new plan’s requirements. In reality, the clubs have not met their payment schedules.
Had the plan’s provisions been strictly enforced, penalties such as point deductions from league standings, relegation, transfer bans, and exclusion from European competitions would have been imposed.
The government’s leniency appears linked to its plans to increase the betting tax. The proposed bill, pending in the Parliamentary Finance Committee, suggests raising the percentage of net betting revenue paid by the Cyprus Sports Organization (KOA) to the Cyprus Football Association (KOP) and the football clubs from 1.5% to 3%. This increase is intended to help settle the clubs’ state debts. The bill is expected to pass when Parliament resumes from its summer recess.
The bill must be reviewed by the European Commission to ensure compliance with EU directives before it reaches the Parliament.
In an exceptional move, the Ministry of Finance granted a special certification to the clubs, citing the pending tax increase as justification. The Ministry claimed it was within its rights to issue such certifications to ensure compliance with UEFA criteria and avoid sanctions.
According to the latest plan, the KOP is required to request certifications from clubs every six months to confirm adherence to financial criteria through debt repayments to the state and players.
Recently, the Ministry of Finance presented the Parliament with a list of additional tax debts accumulated by 14 out of 19 football clubs over a year, totaling €4.8 million. Five clubs had not made any payments since May 2023, contributing to the overall debt of €32.2 million.
The revised plan extended the previous repayment period and included overdue tax liabilities from April 1, 2021, to March 31, 2023, without offering additional relief. It also stipulated a reduction in the repayment period to 168 monthly installments. The plan, lasting 15 years, requires clubs to avoid incurring new debts to participate.
