Brussels: The European Commission has approved Cypriot State aid measures for the new Limassol football stadium, allowing public financing for construction and preferential use by three professional football clubs.
According to Cyprus News Agency, the Commission's approval was granted under EU State aid rules, with the measures designed to enhance sports infrastructure in the region. The first measure involved the public financing of £44.5 million for the construction of the stadium, which was completed in 2022. This new facility replaces an older stadium that could not be upgraded to meet modern safety standards or host international events. The Cyprus Sports Organisation (CSO) owns and manages the stadium, ensuring it serves as a modern, safe venue for professional football and various public interest events, such as educational and cultural happenings.
The second measure involved a 20-year user licence agreement between the CSO and three football clubs: Apollon Limassol, AEL Limassol, and Aris Limassol. Under this agreement, the clubs will use the stadium for home matches, paying a fixed annual rent below the market rate. This arrangement aims to ensure the stadium's continuous use while adhering to obligations related to its operation, maintenance, safety, and public access.
The Commission evaluated these measures under Article 107(3)(c) of the Treaty on the Functioning of the European Union, determining they are suitable for achieving the intended objectives of providing modern sports infrastructure for social, educational, and cultural purposes. The measures were deemed necessary due to the lack of private financing, and the aid was found to be proportionate-limited to what is necessary to fulfill the project's goals. The impact on competition and trade between Member States is expected to be minimal.
The Commission's decision is non-confidential and will be available under case number SA.113461 in the State aid register on the Commission's competition website, following the resolution of any confidentiality issues.