The European Commission has approved two Cypriot measures concerning the public financing of the new Limassol football stadium and its subsequent use by three professional football clubs. The assessment was carried out under European Union State aid rules, with the Commission concluding that the support is appropriate, necessary and proportionate. The decision concerns both the construction of the stadium and the terms under which it is being used.
Public financing of the stadium
The first measure relates to the public financing of the construction of a new football stadium in Limassol, completed in 2022. The facility replaced a former stadium which no longer met modern safety and technical standards and could not be upgraded to host international competitions.
Public financing amounting to €44.5 million was granted to the Cyprus Sports Organisation, which owns and manages the stadium.
According to the Commission, the new venue provides a modern and safe facility for professional football and can accommodate events of public interest, including educational and cultural activities. The project is intended to strengthen regional sports infrastructure, support the development of both professional and grassroots sport, and sustain broader cultural life in the city.
Twenty year user licence agreement with football clubs
The second measure concerns a 20 year user licence agreement concluded by the Cyprus Sports Organisation with Apollon Limassol, AEL Limassol and Aris Limassol.
Under the agreement, the three clubs are granted the right to use the stadium for their home matches. The clubs will pay a fixed annual rent set below market level in order to ensure effective and continuous use of the facility.
The agreement is subject to specific obligations relating to the stadium’s operation, maintenance, safety and public access.
Assessment under EU State aid rules
The European Commission assessed both measures under Article 107(3)(c) of the Treaty on the Functioning of the European Union.
The Commission found that the measures are appropriate to achieve the objective pursued, namely the provision and effective use of modern sports infrastructure serving social, educational and cultural purposes.
It further concluded that the measures are necessary in light of the absence of private financing. In addition, the Commission determined that the aid is proportionate, as it is limited to what is required to achieve the project’s objectives.
The Commission also found that the effects on competition and trade between Member States remain limited.
Publication of the decision
On this basis, the Commission approved the Cypriot measures under EU State aid rules.
A non confidential version of the decision will be made available under case number SA.113461 in the State aid register on the European Commission’s competition website once confidentiality issues have been resolved.
Source: European Commission