The European Commission has approved public funding of €44.5 million from the Republic of Cyprus for the construction of the new football stadium in Limassol, along with the subsequent use of the facility by three professional clubs on preferential terms.
According to the Commission, the first part of the decision concerns the €44.5 million in state funding for the stadium, which was completed in 2022. The new venue replaces the city’s old ground, which no longer met modern safety and technical standards and could not be upgraded to host international competitions.
The funding was granted to the Cyprus Sports Organisation, which owns and manages the stadium. The Commission noted that the new facility provides a modern and safe environment for professional football and can also host events of public interest, including educational and cultural activities, strengthening both the region’s sports infrastructure and the wider cultural life of the city.
The second measure approved by the Commission is a 20 year licence agreement between the Cyprus Sports Organisation and the clubs Apollon Limassol, AEL Limassol and Aris Limassol. Under this agreement, the clubs gain the right to use the stadium for their home matches while paying a fixed annual rent that is below market level. The preferential pricing is accompanied by specific obligations relating to the operation, maintenance and safety of the facilities, as well as ensuring public access to the stadium.
The Commission concluded that the measures are suitable for achieving the objective of providing and effectively using modern sports infrastructure with social, educational and cultural value. It also found that the measures are necessary due to the absence of private financing and proportionate, since they are limited to what is strictly required for the project. The impact on competition and trade between member states was assessed as limited, allowing the approval of the state aid measures.
Source: CNA