Why does KOP accept that its members do not comply with their obligations to the state and what measures does it take as the organizing Authority so that there is compliance with the laws of the State?
The state and the political system continue for many years to turn a blind eye regarding the obligations/debts of football teams (associations/companies) to the state (VAT/GeSy/Social Insurance – about 37 million euros). The state and political system handle (and tolerate) football teams and their agents with scandalous flexibility, in contrast to the citizens, whom when the state wants (sometimes it doesn't want…) it even sends them to prison for pennies owed to it. And the current government continues the tactics of the previous governments (Papadopoulos, Christofias, Anastasiadis), i.e. it does the favor of the football players by basically postponing (for the second time in the year and a half of its government) the implementation of the law – and even found a way to facilitate it even more the teams that do not repay their debts to the state, although they have millions for player transfers, etc. The way is that what is owed will be paid by taxpayers (bettors) through an increase in betting taxation (from 1.5% to 3%)! That is, the state will increase the sponsorship to the Cyprus Sports Organization (CSO), which will increase the fund to the Cyprus Football Federation (CFO), for football teams to pay the taxes they owe to the state. Doesn't this also constitute a subsidy to the bad-paying and ill-educated football clubs (companies)?
“Last time”
The Minister of Finance, Makis Keraynos, speaking to Nikitas Kyriakou/Ant1 last Monday (26/08/2024), said in this regard that “throughout the years there have been too many agreements with unions, extensions were given, repayment schedules”, but “they did not succeed, there was no response”. That is why the government bill will increase the betting tax and this revenue will go to the debts of the teams (instead of sports and culture…). However, Mr. Keravnos noted that “there will be no other plans”, this is the last time the teams' debts will be settled. Possibly he means during his ministry. Because, in Cyprus, politics and football, political and football players are – in some cases that stand out – communicating containers or even the same persons. The state therefore found a “solution” by perpetuating the problem instead of solving it, and gave the necessary assurances to teams (that they are in line with their financial obligations to the state!) to conform to UEFA's criteria and make the their work (transfers, participation in domestic and foreign leagues, etc.). As Eleftheria Paizanou wrote (“Φ” 25/88/2024), the last revision of the plan for paying off tax debts to the state (May 2023) lasted 14 years – until 2037! And even in this there was no consistency on the part of some groups. According to the figures of the Tax Department, APOEL has the largest outstanding debts, with debts reaching close to 1.5 million euros, followed by Apollonas (over 1 million), AEL (over 960,000), Paphos FC ( 775,000) etc. (Stockwatch, 09/07/2024). And according to the Report of the Audit Service for the Ministry of Finance (25/6/2024), of the 19 unions/companies included in the new Overdue Debts Settlement Plan to the state, five did not pay any installments.
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Makis Keravnos [Ministry of Economy]: “Throughout the years there have been too many agreements with unions, extensions were given, repayment schedules”, but “they did not succeed, there was no response […] There will be no other plans, this is the last time”
Papastavrou: “Unfair competition”
The president of Omonia, Stavros Papastavrou, speaking last Sunday (25/08/2024) on Cytavision, said that he had no idea about the new regulation for team debts, he learned it from the publication of “F”. “I don't understand what's going on,” he said characteristically, adding that Omonia is consistent in its obligations, pays its installments, but some groups do not respect the agreement. “Today we learned that some settlement was made again, we didn't know it, now we know it, we had no idea,” he added, noting that when an agreement is made with the state it must be respected, otherwise there must be sanctions. “Over the last six years we have paid many millions in these installments and there are teams that are not paying anything. So you understand that it is unfair competition. It is not possible for us and some other groups to pay and some others not to pay and for there to be no punishment from anyone. And the strange thing is, I don't understand why, the government, the parties, the Parliament… nobody cares [..] When we pay 600-700 thousand and others don't, you understand that with these 600-700 thousand you can get 1 -2 players. But it's not only that, it's because we don't keep what we agreed [..] If the government doesn't want to take this money, let them come out and tell us not to pay, no problem, and let us stop too [..] Something it must be done. It's like saying to the whole world, not only to the teams, to the unions, don't pay (including the taxes)”, added Mr. Papastavrou.
St. Papastavrou [OMONIA]
“It's unfair competition [..] When we pay 600-700 thousand and others don't, you understand that with these 600-700 thousand you can get 1-2 players”
Questions to CPO
On the occasion of the latest developments and statements, “P” asked the Cyprus Football Association some questions concerning the finances of Cypriot football (dues to the state, etc.) and the said Association, also on the occasion of the financial statements of the KOP for the fiscal year ending May 31, 2023.
1.Is the amount that the clubs receive as sponsorship from participation in the European championships distributed through the KOP or does it go directly to the clubs? If it is distributed through the KOP, has the possibility of deducting this amount for the clubs' tax liabilities been considered?
2. How is the money/contributions used by UEFA? For example, the 2.2 million euros of 2023?
3. To which unions did KOP give help in 2023 to pay off debts to the state? Are there criteria? Are they in the form of loans or gifts?
4. Since the KOP budget is not balanced but shows a deficit, why does the Federation give loans to teams? By what criteria are these loans given?
5.There are 8.3 million dues from unions. What are the repayment terms? Are there guarantees?
6. There is an amount (1.2 million euros in sponsorships out of the 3.3 million that is the KOP's sponsorship to unions) that is not detailed in the financial statements of the Federation (for 2023). Where did this amount go?
7.From television rights, KOP has approximately as much revenue as expenses (the difference is approximately 3,000 euros). Where did KOP spend nearly 9 million on TV rights?
8. Why is KOP's salary so high? Thirty-eight (38) employees with a payroll of 2.7 million. The division gives an average of 70,000 euros per year for each employee.
9. In 2022 the staff were given 230,000 euros in tips and in 2023 only 400 euros. Why this difference?
10. Is there somewhere the data concerning the penalties of the teams? Which ones paid, when did they pay and how much?
11. How is the fund from the bet taken by KOP distributed? By what criteria is it divided into groups? How much share is each group entitled to?
12. Do unions and/or companies submit audited financial statements to KOP?
13.< /b>Does the KOP audit these financial statements to make sure they are true and in line with what the unions publicly declare as income/expenses? B.C. club advertises that it has signed a certain footballer for 1 million for 3 years. Does the KOP check whether the publicly announced amount is reflected in the financial statements of the specific association?
14. Does the KOP know if the unions have duplicate contracts? What actions has he taken to make sure that such a practice does not exist?
15. The amount of money, mentioned in publications as debts of the unions to the state, is true (37 millions for tax and social security debts?
16.If the arrears are true, how come the specific unions pass the criteria?
17. Has the KOP ever sanctioned a union for the issue of the criteria? If so, when and which club did it concern?
18. Does KOP submit to UEFA the real and true state of Cypriot clubs' debts to the state?
19.There is no unfair competition between groups that are consistent in their obligations to the state, KOP, etc. relative to those that are not? Why does KOP accept that its members do not comply with their obligations to the state and what measures does the organizing Authority take to ensure compliance with the laws of the State?
KOP answer: We are a healthy organization
The Cyprus Football Federation did not respond separately to each question we put to it, only the press representative of the Federation, Konstantinos Siamboulis, sent us the position of the KOP: “The financial statements of the KOP have been prepared by an independent auditing firm of recognized prestige. Subsequently, an audit was carried out by the Federation's election committee, whose members are appointed by the General Assembly. The financial statements were presented last July at the KOP General Assembly and were unanimously approved by all members present.
“Any questions you ask are answered through the agreements that the Cyprus Football Association has with its member associations, through the agreements and obligations arising from the international federations UEFA and FIFA, through the collective agreements of the KOF with its staff and through the agreements that exist with various other organizations.
»The statutory mission of the Federation is to ensure the existence of organized football in our country, by organizing championships of all age categories, men and women. In this direction are all the actions that are being taken for the fair support of all our member unions. all possible actions to support them, always within the framework of the laws and regulations that govern its operation.
“We note that KOP is fully funded by UEFA and FIFA, to which it is accountable at regular intervals for all its actions and decisions in relation to the utilization of the funds it receives.
“The Cypriot Federation Football is a sound, independent organization under private law, which is the official representative of Cyprus Football internationally. UEFA and FIFA have repeatedly recognized and exemplified the KOP operating model. It is noted that KOP executives actively participate in the collective bodies, at various levels, of the European and World Federation”.
