Estonian Football Association may cover FC Flora's debts with EUR 1.6 mln investment

  • 2020-09-08
  • BNS/TBT Staff

TALLINN – The Tallinn city government at its sitting on Wednesday will discuss an agreement according to which the Estonian Football Association would invest approximately 1.6 million euros in Tallinn's football infrastructure to cover the debts of the football club FC Flora.

In April 2001, FC Flora and the City of Tallinn entered into an agreement obliging the club to transfer to the City of Tallinn a notional part of the building rights of the stadium property corresponding to an investment of approximately 10 million kroons in the construction of Lillekula Stadium's roads and utility networks by the city.

In August of the same year, the club and the city entered into a framework agreement for the purchase and sale of the shares of AS FCF Lillekula Jalgpallistaadion (Lillekula Football Stadium), on the basis of which the City of Tallinn transferred 15 million Estonian kroons to the football club in advance for the shares to be acquired.

The Lillekula Stadium investments have not been compensated to the City of Tallinn so far, the City of Tallinn has not received the shares agreed in the framework agreement for the purchase and sale of Lillekula Football Stadium shares and the advance paid for them has not been returned to the city. In total, the football club owes the City of Tallinn approximately 25 million kroons, or some 1.6 million euros.

Under an agreement reached in May this year, the football club undertook to repay its debt in full within five years at the latest. In July of this year, the general assembly of the Estonian Football Association decided to assume the responsibilities of the football club.

According to the agreement to be discussed on Wednesday, the Football Association undertakes to invest 650,000 euros to cover the club's debt for the development of Hiiu Stadium and at least 950,000 euros for the construction of football infrastructure owned by the City of Tallinn or in some other way involving football infrastructure development by the end of May 2025 at the latest.

The objects of investments and the amount to be invested in them shall be agreed within two years of the conclusion of the agreement.