Twelve football clubs and companies competing or formerly competing in the Cyprus Football Association’s First Division owe the Social Insurance Fund a combined 9.5 million euros, according to data obtained by Phileleftheros. The figures cover 19 football clubs in total and run up to July 15.
Eleven months ago, data submitted to the House of Representatives put the clubs’ debt to Social Insurance at 12 million euros. Settlement arrangements reached in recent months have since cut the outstanding amount by roughly 2.5 million euros.
The five biggest debtors
Five clubs and companies account for 9.32 million euros of the total 9.5 million euros owed. Their individual debts are as follows:
- Club A: 5.84 million euros
- Club B: 1.4 million euros
- Club C: 949,400 euros
- Club D: 783,500 euros
- Club E: 338,300 euros
Social Insurance Services does not release the names of the clubs involved, citing data protection legislation, and Phileleftheros is not publishing them.
Current and former officials in court
Of the 19 football clubs and companies, only seven meet their Social Insurance obligations in full and owe nothing to the Fund.
Five First Division clubs and companies have been taken to district courts over unpaid contributions. It is estimated that these include some of the clubs with the largest debts.
Current and former administrative officials at leading clubs have appeared in court after criminal proceedings were brought against them. Under Social Insurance legislation, when contributions are not paid on time, Social Insurance Services registers criminal cases with the courts. Recovery warrants are issued once the cases are heard.
Seven clubs seek settlement scheme
The remaining seven clubs and companies are attempting to resolve their debts by joining the Social Insurance Contributions Settlement Scheme, which took effect on May 15. Applications can be submitted electronically until September 14. It is the third such scheme introduced to settle overdue contributions to the Fund, which are paid off through monthly instalments.
Phileleftheros was told that only one club remains enrolled in an earlier settlement arrangement, having joined the second scheme, which was introduced during the coronavirus pandemic. A further club has applied to join the new scheme, and it is expected that other clubs owing money to Social Insurance will also apply.
Under the scheme, debtors can repay what they owe over 54 equal monthly instalments. Those who repay early benefit from a reduction in the additional charge, of up to 27%.
No court measures are taken against clubs, or other debtors, who join the new scheme. Registered criminal prosecutions against them are suspended, as are imprisonment or seizure warrants.
Tax Department also monitoring clubs
Football clubs are also under close scrutiny from the Tax Department over their compliance with a separate scheme to pay off tax debts in instalments. Under that scheme’s terms, any club that misses three instalments is automatically removed.
The Tax Department also applies collection measures, including placing memos on clubs’ immovable property, freezing bank accounts and sealing business premises. Following last year’s revision of the scheme, 132 instalments remain before clubs’ tax debts are paid off in full.