Swansea: European Commission to investigate Liberty Stadium funding deal

The European Commission has launched an investigation on the funding deal of Liberty Stadium (20,000 seats) in Swansea (Wales), on the 31/12/2013, in the context of a Europe-wide investigation into state aid in sport.

The Commission is investigating an agreement between Swansea council, which funded the building of the stadium for £ 27m (about € 32.5m) in 2005, Swansea City (Premier League) and the Ospreys Rugby Club, with the two teams both playing there.

Both clubs pay a "peppercorn" rent according to the British press on the 03/01/2014, to the SSMC (Swansea Stadium Management Company), the company that operates the stadium, and £ 1 million (about € 1.2m) per year for running costs. SSMC is a partnership between the council and the two clubs, which share any profits of the company, a situation that has never occurred since 2005.

The investigation will determine whether the agreement complies with the rules established by the European Commission on state aid to private companies. If the funding deal is found illegal, the two clubs may have to pay the difference between their current…