Financial earthquake in Hungary – Győr want to halve players’ salaries

One of women’s handball’s biggest powerhouses is facing financial turmoil. According to Danish broadcaster TV 2 Sport, Győr have asked their players to accept a 50 per cent pay cut and are prepared to let several of their stars leave. Meanwhile, rivals FTC have warned that changes to Hungary’s tax system could have major consequences. Questions are now being raised about the future of Hungarian club handball.

Győri Audi ETO KC have been one of the undisputed powerhouses of women’s handball for many years. With seven Champions League titles, a host of world-class players and financial resources few other clubs can match, the Hungarian giants have long been one of the most attractive destinations for the world’s best players.

Now, however, the situation could be about to change dramatically.

On Monday, Danish broadcaster TV 2 Sport reported that Győr are facing a financial crisis. According to the broadcaster, the club’s management have asked players to accept pay cuts of as much as 50 per cent.

The club are also reportedly prepared to let several of their star players leave, provided other clubs are willing to pay to release them from their existing contracts.

The reports have also been picked up in Hungary. Nemzeti Sport, citing its own sources, reports that Győr are planning significant salary reductions and that players who refuse to accept the new terms could leave the club.

Győr respond – but do not deny the reports

TV 2 Sport attempted to arrange an interview with Győr to discuss the club’s financial situation. However, the club only agreed to respond in writing and did not address the specific questions submitted by the Danish broadcaster.

Instead, Győr issued the following statement:

“Contracts between players and their clubs are strictly confidential. Rumours and speculation based on such sensitive internal information risk not only harming the interests of the clubs and players concerned, but can also have consequences extending beyond the individual cases.

“They can undermine trust between stakeholders in handball and, in the longer term, damage the international reputation, credibility and standing of women’s handball.”

Győr have neither confirmed nor denied the reports of 50 per cent salary cuts or the possibility of several star players leaving.

Tax changes could have a major impact

Behind the financial uncertainty are several changes that could have significant consequences for Hungarian handball.

One of the most important concerns the so-called EKHO system, a preferential tax scheme used by professional athletes in Hungary.

From January 2027, the annual income threshold for preferential taxation is set to fall from 500 million to 60 million Hungarian forints – a reduction of 88 per cent.

The change does not prevent players from earning more than 60 million forints per year. However, income above that threshold will no longer benefit from the same preferential tax treatment.

For clubs with several highly paid players, this could have substantial financial implications. The impact could be particularly significant where contracts guarantee net salaries, meaning clubs would have to absorb additional tax costs to ensure players continue receiving the same take-home pay.

According to Hungarian sports economist Gábor Szabados, who has spoken to RTL, around 40–50 football and handball players in Hungary could be affected by the change.

On 15 October, 24.hu reported that Győr had commented on the proposed tax changes, acknowledging that they could have significant consequences for the club’s finances.

However, it has not been established how much of Győr’s current financial difficulties can be attributed to the tax reform.

FTC also warn of losing star players

Győr are not the only Hungarian powerhouse concerned about the developments.

Ferencváros, commonly known as FTC, have also warned about the consequences of the upcoming tax changes.

In October, the club’s press department told RTL that the reform could affect several of its elite sports teams, including the women’s handball side and the men’s water polo team.

Regarding the women’s handball team, FTC warned that the club could lose some of the sport’s biggest Hungarian and international stars. The comments were also reported by 24.hu.

Reports had already emerged in Hungarian media during the spring that Ferencváros were planning significant cost-cutting measures across several sports. According to those reports, the club’s management were attempting to shield the women’s handball and men’s football teams from the most severe cuts, although both departments could still be affected.

There are, however, no confirmed reports that FTC have demanded salary reductions on the same scale as those now being reported at Győr.

Hungary is changing the way sport is funded

Another major change is set to affect the financial landscape of Hungarian sport.

The so-called TAO system, introduced in 2011, is due to be abolished from 2027. Under the scheme, companies have been able to direct funding towards approved sports projects in exchange for tax benefits.

The money has supported youth development, academies, facilities and other approved operational costs. Handball is among the sports covered by the system.

According to Világgazdaság, the system will be replaced by direct government funding through the state budget. The Hungarian government has announced a model involving approximately 150 billion forints in annual funding for the sports covered by the scheme.

This does not necessarily mean that the overall level of funding for sport will decrease. However, questions remain about how the money will be distributed between different sports and clubs.

The future financial conditions for Hungarian handball are therefore surrounded by further uncertainty.

It is important to distinguish between the two reforms. EKHO concerns the taxation of players’ income, while TAO is primarily a funding mechanism for approved sports activities. There is no confirmed evidence that the abolition of TAO is behind Győr’s reported demands for salary reductions.

Uncertainty surrounding Audi sponsorship

As if that were not enough, questions have also emerged over the future of Győr’s main sponsor.

According to Hungarian newspaper Index, it remains uncertain whether Audi Hungaria will continue as the club’s naming sponsor beyond the 2026/27 season.

Audi has confirmed in a written response to the newspaper that a valid sponsorship agreement with Győr remains in place and that the company is fulfilling all its obligations under the current contract.

However, no details have been provided about the future of the partnership once the agreement expires.

Although there is no confirmation that Audi will withdraw, the uncertainty represents another question mark over the club’s long-term financial position.

Could the balance of power in Europe change?

If the reports about Győr’s financial problems prove accurate, the consequences could be significant for European women’s handball.

For many years, Győr have been among the clubs able to offer the most attractive financial packages, allowing them to compete for virtually any player on the market.

That could now change.

TV 2 Sport expert Peter Bruun Jørgensen believes the developments could have major consequences for women’s handball internationally. Győr have long been a preferred destination for many top players, not least because of the salaries on offer. If that financial advantage disappears, the hierarchy among Europe’s leading clubs could also change.

Other major clubs could suddenly find themselves with opportunities to sign players who were previously difficult to lure away from Hungary.

At the same time, a weakening of both Győr and FTC would represent a significant shift in European club handball. For many years, the two clubs have been central figures in the Champions League and have helped establish Hungary as one of the sport’s strongest club nations.

Exactly how far-reaching the consequences will be remains to be seen. It is not yet known which players could leave Győr, whether any salary reductions will actually be implemented or how the club’s financial situation will develop.

But Monday’s report from TV 2 Sport is the clearest indication yet that the financial changes in Hungarian handball could have a direct impact on some of the biggest stars in the game.