Cyprus government to help football clubs out of debts

The Cyprus government has announced a three-year aid package for debt-ridden football clubs, which owed the states millions of unpaid social insurance payments for their players, local media reported on Friday.

Finance Minister Michalis Sarris said that three million Cyprus pounds (about 6.8 million U.S. dollars) would be given to the clubs in government subsidy, with another 2.5 million pounds (around 5.7 million U.S. dollars) going towards unpaid debts.

It was first disclosed in 2004 that most of Cypriot clubs owed millions in unpaid debts to the state, including social insurance payments and outstanding VAT.

UEFA, the European football's governing body, has also warned the clubs to put their books in order. UEFA once barred Olympiakos Nicosia from signing foreign players because they owed money to a former player.

According to local daily Cyprus Mail, the debts have been accumulated by bad management, as well as rotating club chairmen not planning for the long-term when they take control.