APOEL: NO DEAL

Efforts to bring about a change in the leadership of APOEL FC’s corporate structure have not borne fruit, as recent discussions with Prodromos Petrides failed to yield an agreement.

The group of eight prospective investors decided to withdraw their proposal after it became apparent they would be unable to meet the additional financial obligations that surfaced during negotiations. Although they had a structured plan in place, unforeseen expenses emerged during the discussions, calling their entire approach into question.

As a result, the latest hurdles could not be overcome, despite Petrides reportedly being open to finding a resolution.

What Lies Ahead – Petrides to Present Recovery Plan

Prodromos Petrides is expected to hold a press conference to outline the next steps and his vision for the future of the club. The primary objective remains the financial salvation of APOEL, which is currently facing severe challenges.

The upcoming plan will likely emphasise a policy of financial prudence. Additionally, an international search for new strategic partners may also be part of the club’s strategy.

The Root of APOEL’s Mounting Debt

According to the audited financial statements as of 31 December 2023, APOEL’s total corporate debt stood at €39.1 million – a figure that starkly reflects years of financial mismanagement.

The first major setback occurred during the COVID-19 pandemic, when the 2019–2020 season was suspended – a move led by Petrides himself. It’s estimated that Cypriot clubs lost around €13 million due to this disruption.

Further compounding the issue was APOEL’s absence from European group stages for four consecutive seasons (2020–2024), which cost the club upwards of €30 million in lost UEFA revenue – despite running deficit budgets in anticipation of European income.

In both 2022 and 2023, the club generated revenues of €8.3 million and €9.7 million respectively, yet operated on budgets of €14 million and €13.7 million.

Perhaps the most significant blow came from the government. After decades of leniency towards football clubs – ignoring debts and offering multiple repayment schemes – the authorities imposed stricter measures. As of 2023, clubs with new tax debts were required to settle them in full to re-enter repayment schemes, in addition to clearing arrears with the Social Insurance Fund.

Proposal, Negotiations, and the First Breakdown

On 11 March, the interested consortium formally submitted a proposal to Petrides and APOEL’s board. It included an immediate takeover of club management, backed by funding exceeding €5 million to see out the season.

Although no firm deadline for a response was given, Petrides requested 7–10 days, hoping to conclude parallel negotiations for a potential co-investor. His suggestion of a joint venture with equal financial contribution was declined by the group.

After days without significant progress, the consortium issued an ultimatum on 18 March, requesting a final answer by 6pm on the 19th. Petrides’ board replied that afternoon, requesting the withdrawal of the ultimatum and proposing an immediate meeting to clarify legal and operational matters. The group, however, insisted on maintaining the deadline.

Petrides never formally responded, and the proposal was withdrawn. On 20 March, the club issued a statement inviting the group back to the table, but no reply was ever received, and the matter entered a brief pause.

Eight Days of Intense Developments

On 27 March, Petrides and close associates acknowledged the seriousness of APOEL’s financial woes, recognising that bridging the gap with the group of eight might be the only viable option. It was even rumoured that Petrides was prepared to step down.

The following day, discussions about leadership change intensified. Media reports suggested the group’s return to negotiations hinged on Petrides’ board settling March’s licensing obligations – nearly €500,000. Despite the financial strain, this condition was ultimately not a deal-breaker.

Late on 28 March, Petrides convened an emergency board meeting to discuss next steps and review a potential “Plan B”. At the same time, negotiations continued with Alexis Andreou, aiming to finalise the terms for a leadership transition.

In the early hours of 29 March, Chris Triantafyllides, representing the consortium, publicly confirmed that no agreement had yet been reached and insisted Petrides’ resignation was a prerequisite.

Later that day, APOEL’s board confirmed talks with Andreou were ongoing. Petrides also briefed players about potential leadership changes, indicating a decision would be made within 48 hours.

On 30 March, both sides were locked in detailed discussions. Although progress was made, new issues continued to arise. By Monday, it seemed only minor formalities remained – yet the agreement was not finalised. Discussions resumed on 1 April but without resolution.

The Bond Issue Dilemma

Complications escalated on 2 April, as a financial institution demanded repayment of a bond exceeding €600,000 from APOEL’s corporate entity. The prospective investors refused to absorb this cost, arguing that any agreement should conclude without further liabilities. Resolving the bond issue became a key precondition for them to assume control.

Petrides attempted to mediate, but significant gaps remained between all three parties involved.

By Thursday, 3 April, it appeared the deal was on the verge of collapse. The investors maintained their stance, while the financial institution refused to waive the debt. A marathon five-hour meeting followed that afternoon, eventually leading to a partial breakthrough – although not all points were finalised.

Final Efforts Fall Short – Proposal Withdrawn

On 4 April, a final meeting took place between Petrides and Andreou, during which the latter briefed the investors on the final structure of the agreement.

Despite days of back-and-forth, negotiations ultimately broke down. The group of eight formally withdrew their offer, citing their inability to meet the newly uncovered financial commitments.

APOEL will now continue under the leadership of Prodromos Petrides. However, the club faces an urgent need to raise tens of millions of euros before the end of 2025 to remain compliant with its financial obligations.