Filenews 1 December 2024 - by Eleftheria Paizanou
Football companies have received around €13 million over the last eleven years, from the National Betting Authority from betting taxes, which they have used to support their football teams and academies.
Today, according to the law, recipients of Class A and B bets, i.e. companies that provide land-based (to agencies) and online betting, pay to the Betting Authority 3% of their net remuneration.
Today, 1.5% is received by the Cyprus Sports Organisation (CSO), which then pays it to the Cyprus Football Association (CFA), which in turn makes it available to football clubs.
The CMO submitted to Parliament data on the distribution of the specific revenues from the Betting Authority to football clubs and other sports federations. According to the information from the CSO, from 2013 until June 30, 2024, football clubs received from betting an amount of €12.67 million.
Also, an amount of €4 million has been allocated for other team games and €1.1 million in the Ethics Committee. In total, receipts from betting on the development of sports were €17.9 million.
How much did they get per year?
In detail, the amount of €12.67 million. that ended up in football clubs in the last eleven years "moved" as follows:
– In the first half of 2024, an amount of €1.27 million has been allocated to them.
– In 2023, club revenues were €1.88 million.
– In 2022 revenues were €1.59 million.
– In 2021, football teams had betting revenues of €1 million.
– In 2020 revenues were €1.43 million, in 2018 revenues were €1.6 million and in 2017 they received €667,000.
– In 2016 football clubs from betting were €702,000, in 2015 revenues were €456,000, in 2014 revenues were €469,000 and 2013 was €416,000.
How much did each club get?
It should be noted that the contribution from betting goes to football clubs of all categories, including the agricultural league. Specifically, according to CMO data, the football clubs that received the largest amounts since 2013 are:
– APOEL got €1 million.
– Apollon Limassol received €989,000.
– Anorthosis received revenues of €966,000.
– AEK Larnaca received €955,000.
– Omonia Nicosia received an amount of €954,500.
– AEL had betting revenue of €922,000.
– Nea Salamina has been allocated an amount of €633,000.
– Pafos football team received an amount of €623,000.
– Doxa Katokopias received an amount of €616,000.
– Ethnikos Achna received €539,000 from the bet. and Aris Limassol €432 thousand.
At the same time, an amount of €4 million was received by other team sports/federations. Most of this money was given to the basketball and volleyball federations.
The new settings
The specific contribution paid by the CMO to the CFA is increased through the notorious bill submitted by the Ministry of Finance to Parliament last May, which initially caused strong reactions among members of the parliamentary Finance Committee.
Their strong reaction was due to the fact that the proceeds from the increased tax would go to the unions to pay off their tax debts to the state, which reach €35.6 million. For several months, members of parliament's Finance Committee "parked" this bill in the backlog, however, football companies exerted intense pressure on the parties, resulting in the government proposal coming back to the fore.
The ultimatum brought pressure
The main reasons that led the clubs to fervently demand the approval of the bill are the debts they have accumulated over time but also the risk of their expulsion from the Tax Debt Repayment Plan, something that would put them on adventures, as this regulation is linked to the UEFA criteria, which they must comply with in order to be able to participate in the Cypriot championship and in European competitions.
After the ultimatum given by the Minister of Finance Makis Keravnos to the unions and the strict recommendations of the Commissioner of Taxation Sotiris Makridis, who called on them to comply with the provisions of the last plan of 2023 until next December, otherwise they will be prosecuted, last Friday the bill was again under the microscope of the parliamentary Committee on Finance.
According to the explanatory report, the bill provides for an increase in the percentage of net earnings from betting paid by the Cyprus Sports Organisation to the Cyprus Federation that organizes the annual football championship and is allocated for the purpose of supporting their football teams and academies.
In order to realize the purpose of the bill, an amendment to Article 74 of the Basic Law is required. Specifically, the contribution paid to the National Betting Authority by licensed Class A or B recipients will be increased from 3% of net betting earnings to 4.5%. Also, the percentage of net betting earnings paid by the National Betting Authority to the Cyprus Sports Organisation will be increased from 2% to 3.5%.
The percentage of net wages from betting paid by the Cyprus Sports Organisation to the Cyprus Federation that organises the annual football championship and allocated to support their football teams and academies will also be increased from 1.5% to 3%.
Will the revenues be offset against debts owed by the unions to the state?
In particular, it is provided that betting revenues will be offset against any outstanding tax obligations of football clubs, in accordance with the provisions of the relevant Scheme for the Regulation of Tax Obligations of clubs, implemented by the Commissioner of Taxation.
Subsequently, the Minister of Finance will be able to provide the relevant certificate that the football teams comply with their tax obligations to the State.
Such an attestation will have to be given in the coming weeks, which is why football clubs are pushing for the bill to be approved before the end of the year to start paying their dues.
It should be noted that football clubs that do not owe taxes will receive the increased percentage that will be allocated to them from betting.
It is recalled that the Commissioner for State Aid Control Stella Michaelides has indicated that offsetting is a measure of incompatible state aid. He indicated to the Ministry of Finance that "there is also the option of the legal route of notifying the issue to the European Commission for legal certainty", especially in case of non-implementation and compliance with the Plan, non-compliance with the MEO criterion and in the case of a settlement of a tax settlement that will be disproportionate and will not ensure collection of the maximum possible amount due.
In fact, the Superintendent has stressed the need to align the Plan with European rules to limit the possibility of granting incompatible state aid.
