Cyprus Parliament approves betting levy increase to support football clubs
The new policy has sparked significant debate, with opponents arguing that the bill effectively rewards clubs for financial mismanagement.
Key points:
– MPs approved a 1.5% increase in the levy on betting operators to fund football clubs and youth academies
– Critics argue the measure rewards clubs that have not addressed tax debts, raising questions of fairness and EU compliance
– Proponents see the levy hike as an investment in sports, emphasising the financial risks clubs take to support football
In a tightly contested vote, Cypriot MPs have approved a bill increasing the levy on licensed betting operators from 3% to 4.5% of net earnings.
The additional funds, aimed at supporting football clubs and their youth academies, will be managed by the Cyprus Sports Organisation (CSO) and distributed to the Cyprus Football Association (CFA).
The amended Betting Laws of 2019 and 2020 promise to benefit 97 football clubs across various leagues. However, the decision has drawn criticism, particularly over its failure to impose conditions on clubs to address their significant tax debts, estimated at over €32m ($33.5).
An Audit Office report highlighted that many clubs have failed to honour repayment plans, with new debts accumulating for 14 out of 19 indebted clubs.
While proponents view the levy hike as a necessary correction to support football, critics argue that it rewards fiscal irresponsibility.
Akel MP Aristos Damianou advocated for stricter conditions to ensure transparency and accountability, while Green Party MP Stavros Papadouris called for teaching clubs proper financial management to ensure long-term sustainability.
Concerns have also been raised about compliance with EU laws on state aid, which prohibit direct support to private enterprises like football clubs.
Good to know: A total of 27 MPs voted in favour, with 25 opposing
Independent MP Alexandra Attalides and others questioned the fairness of assisting clubs that fail to meet financial obligations, potentially giving them an advantage over responsible businesses.
Proponents, such as Diko MP Christos Senekis, defended the bill, however, arguing that football clubs take risks that fuel betting profits but receive little in return.
Disy MP Haris Georgiades viewed the bill as an investment in sports, calling for stricter tax collection.
Overall, the controversial new legislation represents a complex attempt to address financial challenges in Cypriot football, drawing support and criticism in near-equal measures.
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