EU approves €44.5m public funding for Limassol football stadium

Cyprus has secured European Commission approval for €44.5 million in public funding for the construction of Limassol’s new football stadium, alongside a 20-year preferential use agreement for three local clubs, according to an official statement.

The decision clears the financing granted by the Republic to the Cyprus Sports Organisation (KOA), which owns and manages the stadium, as well as the licensing terms agreed with Apollon Limassol, AEL Limassol and Aris Limassol.

The first measure concerns public funding amounting to €44.5 million for the construction of the stadium, completed in 2022.

The new facility replaced the city’s old ground, which no longer met modern safety and technical standards and could not be upgraded to host international competitions.

According to the commission, the stadium “offers a modern and safe sports facility for professional football,” while at the same time it “can also host events of public interest, such as educational and cultural activities,” thereby enhancing sports infrastructure and the broader cultural life of Limassol.

The second measure relates to a 20-year licence agreement signed by the KOA with the three clubs.

Under the arrangement, the teams acquire the right to use the stadium for their home matches, paying a fixed annual rent set below market levels.

However, the preferential pricing is tied to obligations.

As the commission noted, the clubs must undertake responsibilities linked to the operation, maintenance and security of the facilities, while also ensuring public access to the stadium.

In its assessment under EU state aid rules, the commission concluded that the measures are “suitable for achieving the objective of providing and effectively using modern sports infrastructures with a social, educational and cultural character”.

At the same time, it found the funding to be necessary, citing the absence of private financing, and proportionate, as it is limited to what is strictly required for the project’s implementation.