Filenews 20 April 2023
It sounds unbelievable, but the Ministry of Finance, through which around €40 million was made available for the construction of the new football stadium in Limassol, was informed that it will have a supermarket name from the invitation received for the inauguration of the stadium.
The Ministry, as can be seen from a relevant letter from its Director General George Pantelis to the CSO, which was only yesterday communicated to the Parliament, was surprised and reacted immediately by sending a letter to the Organization dated November 24, 2022, marked "URGENT" in which it states the following:
"I refer to the above issue and following the conclusion of a License Agreement for the use of the New Limassol Stadium, between the Cyprus Sports Organization (CSO) and the three sports clubs of Limassol (Apollon, AEL, Aris), I inform you that the Ministry of Finance was informed only yesterday through the invitation sent to us for its inauguration, that the said stadium has received the name of a supermarket (named) and that the company's logo has been placed at the entrance of the stadium'.
"As you know," the letter continues, "the project in question has been financed by state resources, of a significant amount, amounting to €40 million. and therefore it is not just any private land, the name of which can be determined on the basis of the aspirations of its respective owner".
The general director of the ministry also mentions that in the case of the new Limassol stadium, the name using the name of a private company misleads as to the owner and main financier of its construction.
"Therefore, as a position of principle, the name of the stadium should not be linked to any private interests/benefits," the letter added.
The Ministry notifies the CMO that the letter is notified to the Attorney General, the Auditor General and the Commissioner of State Aid.
The ministry's letter is attached to a reply from the CMO to the parliamentary Audit Committee, which had submitted a series of questions regarding the management of the CMO agreements with the three unions or the unions with individuals.
It is worth noting that the CMO blames the Legal Service and the Commissioner of State Aid for the delay in the process of preparing the agreement concluded with the three unions, noting that: The creation of the agreement and the actions of the Organization had begun some time before. However, due to the specificity and complexity of the issue, both the opinion of the Legal Service and the Commissioner of State Aid was required, as well as their subsequent participation in the creation and finalization of the agreement, a process that eventually became very time-consuming.
To the question of what will happen if the three clubs do not pay the agreed rent, the CSO gives the following answer: The agreement for the use of the Limassol stadium is signed by the CSO (owner) and the three sports clubs Apollon Limassol, AEL Limassol and Aris Limassol. The agreement includes a clause according to which, in case the licensees do not pay the due market fee, the agreement is terminated on the basis of clause 7.2.
It all depends on the EU
Regarding the possibility that the CMO agreement with the unions will not be approved by the EU, the Agency states: The agreement is subject to obtaining the necessary approvals from the relevant EU bodies and/or their prior consent (clause 11.1). In addition and according to clause 11.2 of the agreement, "the Contracting Parties unreservedly accept that in case no necessary approvals are obtained from the competent EU bodies, the agreement has no legal force and no claim or right for compensation or other claim or remedy of any nature or form that may arise in such a case". Therefore, in such a case, the CMO will proceed with the recovery of the installation and the announcement of a relevant open Tender.
In response to another question, the CSO informs the Parliament that based on the agreement and specifically Article 6.5, the Board of Directors of the CSO decided to accept the request of the three clubs to transfer the management of the new Limassol stadium to a management company and specifically to the company A.A.A. Limassol Stadium Limited, provided that all other provisions of this clause/article will be applied.
The CSO also states that "with regard to the agreements concluded by the managing company or the clubs with any of their sponsors, including the sponsor of the stadium name, these have not been notified to the Organization as this is not provided for by the License Agreement between them".
