The proposed increase in betting tax to settle football clubs’ debts to the state appears to be a superficial solution, especially as some teams over the past 18 months either failed to pay their instalments entirely or paid less than required. The House of Representatives passed the bill to raise the betting tax from 3% to 4.5% by majority vote.
The bill was supported by 27 MPs from DISY, DIKO, and ELAM, while 25 MPs voted against it. Before the final vote, an amendment proposed by AKEL, DISY, DIKO, and DIPA was approved. This amendment increased the percentage of betting revenues allocated through the Cyprus Sports Organisation (KOA) to sports federations beyond the Cyprus Football Association (CFA) by 0.5%, making the total 1%.
Mounting debts
As per data obtained by S, football clubs’ total debts amount to €35.6 million, with €4.1 million accumulated over the past year, despite the implementation of a repayment scheme. Many of these debts are linked to club management companies, which spend exorbitant amounts on coach compensations, player acquisitions, and other activities. Often operating without stringent oversight, these entities continue to receive substantial state support. Meanwhile, other business owners face court proceedings and even prison sentences for public debt. This selective approach has left citizens, struggling daily for survival, feeling frustrated.
The approach taken is often to create new laws and repayment methods, ignoring the deeper reasons why clubs fail to meet their obligations. Quick fixes prevail, while violence in football has further reduced attendance, exacerbating clubs’ financial problems.
A need for change
The real solution requires a cultural and value shift in football, making it clear to owners that they are not untouchable. Unfortunately, the state ignores the root of the problem, opting for surface-level fixes.
Financial overview
Most clubs face significant challenges, needing to cover €4.1 million in tax arrears by the end of December to remain part of the repayment plan. Total tax debts across clubs reach €35.5 million, with €31.4 million attributed to older debts.
- APOEL owes €666,800 this month, with total debts of €11.6 million, having only paid €94,600 since the plan’s inception.
- AEL has not made any payments, owing €5 million, and needs to pay €683,200 immediately.
- Apollon Limassol must pay €1 million by December, having paid €346,500 so far, leaving €4.8 million in arrears.
- Anorthosis owes €4.2 million and has not made a single payment, with €188,100 due now.
- Omonia Nicosia, by contrast, has maintained consistent payments, avoiding new debts, having paid €456,000 out of a total debt of €4.9 million.
- Pafos has doubled its debt to €1.18 million, despite repaying €636,900.
- Ethnikos Achnas owes €99,000 for December, having already paid €96,400, with total debts of €1.15 million.
- Ermis Aradippou owes €546,000 without any payments and accrued an additional €2,571.
- Doxa Katokopias must pay €99,700, with total debts of €508,800.
- Nea Salamina owes €374,100 after adding €9,540 in new debts.
- ENP Paralimni faces €310,700 in total debts, needing €400,000 immediately.
- Karmiotissa has minor arrears of €1,003 but made no payments.
- Olympiakos Nicosia has cleared all debts, including a minor amount of €586.84.
- Aris Limassol owes €51,800 this month, with total debts of €434,400.
- PAEEK Keryneia has total arrears of €26,127.
- Akritas Chlorakas owes €87,800 without creating new debts.
- Othellos Athienou must pay €100,600, with total debts of €191,700.
- Omonia Aradippou owes €39,800, with €29,200 due this month.
- Omonia 29 May and AEK Larnaca have no debts.
Strict measures ahead
Some clubs have failed to meet their obligations over the past 18 months, either skipping instalments or paying less than required. Compliance is essential to avoid legal repercussions and ensure smooth operations.
Behind-the-scenes discussions are ongoing about restructuring the plan and debt repayment methods. However, S received assurances from relevant authorities that the current scheme, which provides for 168 instalments, will not be revised. Officials emphasised that no new framework is being prepared, and debt cancellations are off the table. Non-compliant clubs risk removal from the plan, with legal action to follow.
Responsibility and reform needed
The financial plight of football clubs underscores the need for sound management and stricter financial oversight. Clubs must demonstrate responsibility and transparency to secure their sustainability and restore trust in the sport. Their viability depends on taking accountability for their finances and the political will to enforce systemic reform, ending the reward of bad practices.
