COMMERCIALISATION OF SPORTS FACILITIES REGULATIONS

SUBSIDIARY LEGISLATION 455.12

COMMERCIALISATION OF

SPORTS FACILITIES REGULATIONS

1st January, 2017

LEGAL NOTICE 160 of 2017, as amended by Legal Notices 213 of 2022

and 61 of 2023.

(1)

The title of these regulations

is

the

Commercialisation of Sports Facilities Regulations.

(2) The purpose of these regulations is to establish the

criteria on the basis of which a sports organisation may be granted the

right to carry out commercial activity within a sports facility.

In these regulations, unless the context otherwise requires

"Act" means the Sports Act;

"Appeals Panel" means the Commercial Sports Facilities

Appeals Panel established under regulation 3;

"applicant" means the sports organisation applying with the

Commission for permission to carry out commercial activity within a

sports facility;

" "Audit firm" shall have the same meaning as that assigned to it

in the Accountancy Profession Act;

"club" means a sports organisation registered as a sports

person with SportMalta and being also a member of a sports person

registered with SportMalta as a national association or federation;

"commercial area" means the designated area of the sports

facility which shall be used exclusively for the commercial activity

according to these regulations;

"commercial activity" means that activity within the

commercial area which shall be used for the construction and

operation of buildings for commercial activity by the sports

organisation, that is offices, retail units, shopping malls, supermarkets,

catering establishments (for use at any time of the day according to the

relative licence), language schools, childcare centres, and any parking

spaces that are in excess of the car-parking provisions according to the

policies of the Planning Authority required for the operation of such

buildings

Provided that the Commission may approve any other

sui generis commercial use, with the exclusion of nightclubs, gaming

parlours, class 3B hotels, and residential units, and any other

commercial activity which the Commission deems not fit to be found

within a sports facility;

"Commission" means the Commercial Sports Facilities

Commission established under regulation 3;

"floorspace" means the total area of the built structure deriving

from the computed aggregate of all floors within the structure,

measured from the external face of the development’s walls (or in the

case of party walls measured up to half the width of such walls),

including all internal and usable external spaces, such as balconies,

terraces and gardens;

"footprint" means the total area delineated by the perimeter of

a site and shall be taken to include all outer spaces, which area is

measured from the external face of the walls (or in the case of party

walls measured up to half the width of such walls);

"SportMalta" means the body established in accordance with

article 4 of the Act;

"sports activity" means that part of the sports area which shall

be solely used for the actual practice of a sporting discipline by the

sports organisation, that is indoor or outdoor, single or multi-use

pitches and courts, indoor or outdoor swimming pools and

gymnasiums;

"sports ancillary activity" means that part of the sports area

which shall be used for the construction and operation of buildings

that form an integral part of the operation and the achievement of the

sporting objectives of the sports organisation, that is spectator stands,

dressing rooms, warm-up areas, clubhouses (including administrative

offices, meeting and conference rooms, catering facilities to be used

during sports events only, lounges, media areas, sports museums and

e-sports arenas), sports academies, high performance training centres,

medical and health facilities (including recovery centres, medical

centres and physical rehabilitation centres), spas and personal care

centres, class 3A hostels, and necessary parking spaces according to

policies of the Planning Authority required for the operation of such

buildings;

"sports area" means the designated area of the sports facility

which shall be used exclusively for the sports activity and the sports

ancillary activity for which the sports organisation is registered with

SportMalta;

"sports facility" means an immovable property, falling under

the definition of sports facility under Part IV of the Act, which

immovable property has been transferred by whatsoever title to a

sports organisation;

"sports organisation" means a national association, national

federation, football club or aquatic sports club, registered as a sports

person in the Register of Sports Persons according to Part VII of the

"Undesirable Person" means a person who

(a)

has been convicted of a crime, wherever

committed

(i)

against the safety of the Government in

terms of articles fifty-five, fifty-six, fifty-seven, fifty-

eight and fifty-nine, of the Criminal Code,

(ii) against public safety in terms of articles

311, 312, 313, 314, 315, 316 and 317of the Criminal

Code, or

(iii) specified in the Schedule to the

Extradition Act, and liable to a term of imprisonment of

more than three years;

(iv) against

the

Prevention

of

Money

Laundering Act;

(v)

in violation of the articles 307, 308, 309,

310, 311, 312, 313, 314, 315of the Companies Act, or in

violation of article 191 of the Criminal Code;

(vi) against Sub-Titles IVA and B of Title IX

of Part II of Book First of the Criminal Code;

(vii) against the laws or by the courts of

another country with respect to the crimes substantially

equivalent to those specified in sub-paragraphs (i), (iv)

and (v).

(b)

is the subject of sanctions or restrictions issued

by the United Nations, the European Union or other

international governmental body of which Malta is a member

and which are adopted or applied by the Government in terms

of the National Interest (Enabling Powers) Act, and, or other

applicable law, and this for such time as such sanctions remain

in force;

(c)

is the subject of an international arrest warrant

or of a European Arrest Warrant or is otherwise wanted by

INTERPOL or by another equivalent trans-national police

organisation, and this for such time as he so remains;

(d)

is insolvent or bankrupt and unable to pay his

debts as they fall due;

(e)

being a legal entity, the director, the

administrator or other officer or the controlling shareholder of

which is

(i)

an Undesirable Person, or

(ii) in case of a director or officer,

disqualified to be a director of a company in terms of the

Companies Act or of a similar law of a jurisdiction of

which the director or officer is a national or a resident

and this for as long as such person remains so

disqualified.

(1)

There is hereby established a Commission to be

known as the Commercial Sports Facilities Commission, which shall

have a legal personality, and shall consist of a Chairperson and a

minimum of five (5) and a maximum of nine (9) other members

nominated by the Minister from which at least one (1) member shall

have expertise in the field of sport administration in Malta.

(2)

One of the members of the Commission referred to in

sub-regulation (1) shall be nominated by the Lands Authority.

(3)

The Commission shall have the following functions

(a)

supervising the correct implementation of

these regulations;

(b)

evaluating, approving or rejecting applications

made under these regulations;

(c)

monitoring the performance of the commercial

activities being carried out by sports organizations within

sports facilities; and

(d)

ensuring that

the

objectives

of

these

regulations are being achieved.

(4) There is also hereby established an Appeals Panel to be

known as the Commercial Sports Appeals Panel.

(5)

The Appeals Panel shall consists of a Chairperson who

shall be a retired Judge or a retired Magistrate or person who has

practised the profession of Advocate for at least twelve years and a

minimum of three and a maximum of five other members.

(6)

(a)

The Chairperson of the Appeals Panel shall be

appointed by the Minister responsible for Sport;

(b)

The members of the Appeals Panel shall be

appointed by the Minister responsible for Sport from amongst

persons with expertise in sport administration in Malta.

(7) The Appeals Panel shall hear and decide appeals made

by sports organizations from the refusal of applications by the

Commission.

(1)

A sports organisation shall apply to the

Commission in order to be able to carry out commercial activity in a

sports facility. A sports organisation may carry out commercial

activity solely upon being granted a permit by the Commission,

following the submission of an application in accordance with sub-

regulation (2)

Provided that a sports organisation which intends to carry

out a commercial activity as defined in these regulations, which

commercial activity does not take up more than a total floorspace of

two hundred square metres (200sqm), shall apply for the carrying out

of such commercial activity with SportMalta after notifying the

commission and, following clearance by the said commission for the

processing of the application, Sport Malta shall adopt its own policies

and procedures on how to deal with and approve such applications.

(2)

The application for the commercialisation of a sports

facility shall, on pain of nullity, contain the following

(a)

the name, registration number as a sports person

and official address of the applicant;

(b)

a list of all committee members of the sports

organisation, with clear indication as to the responsibility held

by each committee member;

(c)

a signed declaration as to who are the legal

representatives of the sports organisation;

(d)

a detailed written explanation of the type of

commercial activity proposed to be carried out within the sports

facility by the applicant;

(e)

a plan made by a perit that identifies the area of

the sports facility that shall be used as the sports area and the

commercial area, with a declaration on what will be the number

of square metres which shall be used as the sports area and the

commercial area respectively, that contains all necessary

designs and plans on how the sports facility is going to be

structured, including both commercial and sports areas. The

proposed sports area shall never be less in size than the area

which is currently being used exclusively for the practice of the

sporting discipline for which the sports organisation is

registered with SportMalta. The sports area and the sports

ancillary area shall invariably be at least sixty per cent (60%) of

the total floorspace;

(f)

a signed declaration on the estimated time for the

completion of any infrastructural works that are to be carried

out in the sports facility prior to the start of the commercial

activity;

(g)

a sworn declaration made by the legal

representatives of the sports organisation confirming that the

application is being made by the sports organisation according

to these regulations and that the sports organisation is aware of

and understands all its rightsand obligations according to these

regulations;

(h)

proof of title over the land proposed for

commercialisation;

(i)

a complete application form as provided in

Schedule 1.

(3)

Upon receipt of an application by a sports organisation, the

Commission shall confirm that the application is complete, and upon

such confirmation it shall issue a letter of intent to the sports

organisation so that it may commence with any preparations it deems

necessary. The Commission shall also instruct the sports organisation to

forward such letter of intent and a copy of the completed application,

including all attached documents to the Lands Authority for the

confirmation of proof of title over the land proposed and the valuation

of the land according to regulation 6.

(4)

The sports organisation, upon paying the relative fees and

following receipt of the official valuation documentation prepared by

the Lands Authority, shall

(a)

prepare a business plan that explains in detail the

expense estimated in order to start the commercial

activity within the sports facility, how such

estimated expense shall be financed, plans for the

repayment of the expenses, the estimated revenue

that shall be generated by the commercial activity

and a detailed explanation on how the sports

organisation shall benefit, from a sportive

perspective, from the commercial activity clearly

including the following key performance indicators;

(i)

the targeted yearly turnover;

(ii)

the targeted overall yearly job creation;

(iii)

a monetary equivalent quantification of the

yearly benefits to the sport organisation;

(b)

produce an authenticated copy of any development

and management contract concluded with a third-

party operator according to regulation 7;

(c)

compile all documents proving that all natural

persons forming part of the committee of the sports

organisation and all natural persons being the

members, directors, shareholders and, or ultimate

beneficial owners of any third-party operator, which

can be both a natural person or a legal person, that

have entered into a development and management

contract with the sports organisation according to

regulation 7 to fulfil the criteria set out in regulation

7(3);

(d)

take all measures necessary to fulfil the requirements

of regulation 6(6).

(4a) The sports organization shall also commission an audit firm

to verify that the above requirements have been duly completed and to

provide a declaration in accordance with Schedule 2.

(5)

The audit firm is also to provide an audit report which

shall

(a)

assess and confirm whether the project is intended

to lead to the infrastructural, financial and sportive

growth of the sports organization;

(b)

confirm whether the time-frames proposed are

realistic;

(c)

evaluate whether the sports organisation, or a

proposed third-party operator, are financially

capable to start the commercial activity and

whether they are financially viable to manage and

sustain a prolonged commercial operation;

(d)

verify the process of adjudication of the request for

proposals leading to the confirmation that this has

been carried out in line with the conditions laid out

in the request for proposals;

(e)

confirm that the requirements of regulation 7(3) are

fulfilled;

(f)

confirm that any third-party contract is in

accordance with regulation 7(4)

Provided that the audit report shall include all the

documentation which is to be prepared and provided by the sports

organization referred to in the application in accordance with the

checklist provided in Schedule 3

Provided further that following the submission of the

declaration and report required in sub-regulation (4a) and this sub-

regulation, the Commission shall proceed with the approval of the

application process and may impose any condition it feels appropriate

on the sports organisation and any third-party operator participating in

the project of the sports organization.

(6)

Repealed by Legal Notice 61 of 2023.

(7)

Repealed by Legal Notice 61 of 2023.

(8)

The sports organisation shall have the right to appeal a

decision of the Commission to refuse the application or to impose any

condition to the Appeals Panel within seven (7) days from the service

of the reasoned decision for refusal of the application or for the

imposition of a condition.

(9)

When in receipt of an appeal from a decision of the

Commission by a sports organisation, the Appeals Panel shall convene

one (1) hearing, not later than thirty (30) days from the receipt of the

appeal, in order to hear the appellant sports organisation and the

Commission.

(10) The Appeals Panel shall notify its motivated decision on

the appeal to the parties within fifteen (15) days from the last hearing

of the appeal.

(11)

The decision of the Appeals Panel shall be final and

absolute.

(12) The Commission shall notify SportMalta of all

permissions granted by the Commission, in the first instance, or the

Appeals Panel, following an appeal, and shall forward all

documentation to SportMalta.

(1)

Upon being notified by the Commission that

permission has been granted to a sports organisation for the

commercialisation of a sports facility, and the documents related to the

case are received, SportMalta and the sports organisation shall draw up

a public deed for the concession of the same sports facility to the

sports organisation. The Commission shall also appear on the public

deed limitedly to declare its approval to the publication of the said

public deed.

(2)

The said public deed shall, apart from the formalities

prescribed by law for all public deeds, include the following

(a)

the new term for the temporary emphyteusis

which shall never exceed sixty-five (65) years;

(b)

a declaration as to the total footprint in square

metres of the sports facility;

(c)

a declaration as to the ground rent to be paid in

respect of the sports area and the commercial area by the sports

organisation to SportMalta;

(d)

a declaration stating that the designated sports

area shall be used exclusively for the practice of the sporting

discipline for which the sports organisation is registered with

SportMalta, whereas the designated commercial area shall be

used exclusively for the operation of the commercial activity

within the sports facility;

(e)

a declaration as to the precise footprint in square

metres of the minimum designated sports area and the

maximum designated commercial area;

(f)

the establishment of any terms of payment to be

made to SportMalta by the sports organisation for the

designated sports area and for the designated commercial area;

(g)

a declaration as to the identity of the third-party

operator which has been approved by the Commission to

develop and, or manage the commercial activity in the sports

facility, with the relevant contract submitted with the

application to the Commission being annexed to the public

deed;

(h)

the yearly key performance indicators identified in

the business plan in terms of turnover, jobs creation, and

monetary equivalent benefits to the sports organisation;

(i)

an attached site-plan which clearly indicates

which part of the sports facility shall be used as the sports area

and which part shall be used as the commercial area;

(j)

a declaration stating that the sports organisation,

and the third-party operator, if any, recognise and are bound by

these regulations and shall forward all necessary documentation

requested by SportMalta for monitoring purposes and be liable

to the administrative penalties prescribed by regulation 9

should it, or the third-party operator be in breach of contract or

of these regulations.

(3)

Any public deed concluded for the purposes of these

regulations shall include a condition to the effect that the conditions

stipulated in these regulations shall form an integral part of and shall

bind the parties to the public deed.

(4) Any public deed concluded for the purposes of these

regulations shall require approval by special resolution of the House

of Representatives in terms of article 31 of the Government Lands

Act.

(1)

The freehold value of the footprint of the land

over which the sports organisation intends to carry out the proposed

development as approved by the Commission, and the resultant annual

ground rents on both the areas designated for sports and commercial

activities, shall be determined by the Lands Authority.

(2)

The freehold value shall be equivalent to the difference

between the estimated value of the land with its full development

potential in accordance with the submitted project, and the value of the

improvements made thereon by the same sports organisation

throughout the years it has been administering the sports facility.

(3)

The annual ground rent for the granting of an

emphyteutical concession for a period of not more than sixty-five (65)

years over the floorspace of the area designated for sports activity and

the related sports ancillary activities, which estimate shall correspond

to four-point two five percent of the freehold value determined in sub-

regulation (2). A share of five per cent (5%) of the resultant ground

rent according to the provisions of this sub-regulation shall be payable

to SportMalta.

(4)

The annual ground rent for the granting of an

emphyteutical concession for a period of not more than sixty-five (65)

years over the floorspace of the area designated for commercial

activity, which estimate shall correspond to five point seven five per

cent (5.75%) of the freehold value determined in sub-regulation (2). A

share of fifty per cent (50%) of the resultant ground rent in accordance

with the provisions of this sub-regulation shall be payable to

SportMalta.

(5)

Payment of the five per cent (5%) share of the annual

ground rent by the sports organisation for the areas designated for

sports activity and the related sports ancillary activity shall become

due upon the publication of the public deed according to regulation 5

Provided that the fifty per cent (50%) share of the annual

ground rent on the areas designated for commercial activity shall

become due as from the first day in which the operation of the

commercial activity begins

Provided further that if the commercial activity does not

start within five (5) years from the publication of the public deed

according to regulation 5, the authorisation for the commercialisation

of the sport facility shall not apply anymore and the public deed in

respect thereof shall be rescinded at the request of SportMalta.

(6) Should the commercial activity approved by the

Commission require infrastructural works for the start of the

operation of that commercial activity, then all necessary development

permits according to law are to be obtained by the sports organisation

prior to the carrying out of such infrastructural works.

(7)

Without prejudice to the other provisions of these

regulations providing for other requirements, no commercial activities

shall be undertaken by the sports organisation or its appointed third

parties until the Planning Authority issues its compliance certificate.

(1)

A sports organisation applying for permission

to carry out commercial activity in accordance with these regulations,

may enter into a contract with a third-party operator for the

development and, or the management of the commercial activity

within the sports facility, following the publication of a public request

for proposals by the sports organisation.

(2) A third-party operator that enters into a contract with a

sports organisation under these regulations, shall be solely

responsible for the commercial area and the commercial activity

within the sports facility for the duration of the agreement with the

sports organisation.

(2a) A third party operator that enters into a contract with

the sports organization under these regulations shall be subject to the

conditions stipulated in the public deed and the termination

mechanism included therein and, or in these regulations, and may not

undertake any activities until the publication of the deed following its

prior approval by resolution of the House of Representatives.

(3)

The third-party operator shall be

(a)

a legal person established by the sports

organisation to develop and manage the commercial activity

which is wholly owned by the sports organisation; or

(b)

a legal person established jointly by the sports

organisation and another legal person which is not a sports

organisation; or

(c)

a legal person which is not a sports

organisation and has no connection to the sports organisation

other than its contractual relationship therewith in respect of

the commercial activity.

(4) A third-party operator shall not be recognised by the

Commission unless the contract between the sports organisation and

the third-party operator according to sub-regulation (1), is approved

through the audit report referred to in regulation 4(5), following the

publication and adjudication of the request for proposals, and has

COMMERCIALISATION OF SPORTS FACILITIES

verified that the process of the adjudication of the request for

proposals has been carried out correctly.

(5) The sports organisation through the audit report referred

to in regulation 4(5) shall prove that the owners, members, directors

and, or ultimate beneficial owners of the third-party operator are not

undesirable persons after a due diligence assessment has been carried

out in relation thereto.

(6) A contract of between a sports organisation and a third-

party operator for the development and, or the management of the

commercial activity within the sports facility, according to sub-

regulation (1), shall contain the following minimum requirements

(a)

the name and address of the legal person that

will be the third-party operator;

(b)

the names, addresses and details of all the

physical persons forming part of the third-party operator,

being owners, members, directors and. or ultimate beneficial

owners of the third-party operator;

(c)

the term of the contract which shall never

exceed the term of the emphytheusis granted to the sports

organisation;

(d)

a clear explanation as to what shall be the role

of the third-party operator in the development and

management of the commercial activity within the sports

facility;

(e)

if the third-party operator is to carry out any

infrastructural works, how these are going to be funded and

how it will deal with the financial risks involved;

(f)

if the third-party operator is to manage the

operation of the commercial activity, how this operation is

going to be run and how it will deal with the financial risks

involved;

(g)

an explanation as to how the sports

organisation will benefit from the contract with the third-party

operator from an infrastructural, financial and sporting

perspective;

(h)

a declaration as to any amount of money that

will be paid by the third-party operator to the sports

organisation party for the concession of the development and

management of the commercial area and the commercial

activity within the sports facility, how payments are to be

effected, and what steps are to be taken should the third-party

operator not effect such payments on time;

(i)

a declaration by the third-party operator that it

is accepting responsibility for

(i)

any sanction for non-compliance with

these regulations or with the terms imposed by the

Commission;

(ii) the suspension or closing down of the

commercial activity for non-compliance with these

regulations;

(j)

an explanation as to what will happen should

the third-party operator be in breach of the contract due to the

abandonment of the development and, or management of the

commercial activity within the sports facility or due to the

third-party operator ceasing to exist , which in any case cannot

be less stringent than the conditions established in these

regulations and in the published deed;

(k)

A declaration by the third-party operator that it

is accepting

joint and several liability with the sports

organisation for all obligations over the commercial area

which the sports organisation has with SportMalta.

(7) In the case where a contract is terminated, the sports

organisation may enter into a new contract with another third-party

operator only after providing an updated audit report in accordance

with regulation 4(5) and after obtaining approval from the

Commission. Such contract shall contain the minimum requirements

established in sub-regulation (6) and shall be filed with the

Commission.

(8) In the eventuality that the contract between the sports

organisation and the third-party operator is terminated, for any

reason, the commercial area shall revert to the sports organisation.

The sports organisation shall have the right to stop operating the

commercial area if it reaches an agreement with the Commission and

in such case Government shall have a reserved right to make use of

the said commercial area.

The development and the management of the

commercial activity may be financed directly by the sports

organisation, by the third-party operator or by any financial

institution which is licensed to provide such funds

Provided that neither the sports organisation, nor the

third-party operator may burden the sports facility with any form of

pledge, antichresis, privilege or hypothec servitude or other burden of

a similar nature.

(1)

At the end of every calendar year, the sports

organisation, or the third-party operator, being the party that is

managing the commercial area, shall send to the Commission a

report, called the ‘Annual Report’, containing the following

(a)

audited financial statements on the financial

performance of the commercial area, and the financial benefit

received by the sports organisation, in the current year,

including a summary describing the yearly turnover,

employment figures and monetary equivalent benefits to the

sports organisation;

(b)

a budget with clear estimates as to expected

financial targets, revenues and costs, and expected financial

benefit to be received by the sports organisation, in the

following year;

(c)

an administrative report signed by all members

of the sports organisation detailing the enhancement of the

sports area in the past year through funds received from the

commercial area. Such enhancement need not be only in the

infrastructure of the sports facility but also may include

upgrades in the level of sports technical staff.

(2) Upon receipt of the Annual Report the Commission shall

forward a copy of such report to SportMalta and to the Lands

Authority.

(3) Both SportMalta or the Commission may at any time

during the year request interim reports on the financial or

infrastructural performance of the sports facility in respect of any

time during the year whenever they feel that targets established with

the sports organisation or the third-party operator at the beginning of

the year are not being reached.

(3a) At five (5) year intervals starting one (1) year following

the commencement of commercial activities, the turnover for a five

(5) year period shall be reckoned and should this sum exceed that

indicated in the business plan, the profit margin on the said excess

turnover shall be divided as follows

(i)

thirty percent (30%) between the third-party

developer and, or operator,

(ii)

forty percent (40%) to the sports organisation; and

(iii)

thirty percent (30%) to SportMalta.

Such third-party developer and, or operator shall maintain

separate accounts for their activities.

(4)

Should the sports organisation, or the third-party

operator, not submit the Annual Report by the end of January

following the end of the year when the report was due then the sports

organisation, or the third-party operator, shall pay an administrative

penalty amounting to ten per cent (10%) of the ground rent for the

commercial area as established in the deed, following written notice

issued by the Commission after the deadline has elapsed

Provided that if the sports organisation, or the third-

party operator, does not submit the Annual Report by the end of the

following February, then SportMalta, may suspend the permission to

carry out commercial activity granted to the sports organisation in its

sports facility granted by the Commission according to regulation 4.

(4a) SportMalta shall also suspend the permission to carry out

commercial activity granted to the sports organization in its sports

facility granted by the Commission in accordance with regulation 4 if

the Annual Report requested in sub-regulation (1) does not confirm

that the commercial undertaking has satisfied

(a)

at least twenty-five per cent (25%) of each one of

its targets in accordance with regulation 4(4)(a) in

its first year of commercial operations;

(b)

at least fifty per cent (50%) of each one of its

targets in accordance with regulation 4(4)(a) by its

third (3) year of commercial operations;

(c)

at least seventy-five per cent (75%) of each one of

its targets in accordance with regulation 4(4)(a)

from its fifth(5) year onwards of commercial

operations.

(5) When it is established that the sports organisation, or the

third-party operator, managing the commercial area, is

(a)

engaging in any criminal activity within the

commercial area; or is tolerating such activity; or

(b)

engaging in any commercial activity for which

the Commission had not granted permission according to

regulation 4; or

(c)

declared bankrupt; or

(d)

in breach of any regulation of these regulations,

or of any condition made by the Commission when permission

to carry out commercial activity was granted according to

regulation 4 or any modification thereof; or

(e)

repeatedly not paying the ground-rent on the

sports facility or the rates payable due on the commercial area

on time,

then SportMalta shall suspend the permission to carry

out commercial activity granted to the sports organisation in

its sports facility granted by the Commission according to

regulation 4.

(6) Whenever SportMalta suspends the permission to carry

out commercial activity granted to a sports organisation in its sports

facility according to sub-regulations (4) or (5) above, SportMalta

shall immediately notify the Commission and the Lands Authority of

such decision.

(7) Whenever the Commission receives notification under

sub-regulation (4a) and, or (5) it shall investigate the matter, and

within fifteen (15) days take a decision, in writing, on whether to lift

the suspension, prolong the suspension until conditions for the lifting

of the suspension made by the Commission to the sports organisation

or the third-party operator, as the case may be, are met, or withdraw

definitively the permission to carry out commercial activity within

the sports facility granted to the sports organisation under regulation

4 and the Government reserves the right to undertake such

commercial activity with another third party following the issuance

of a request for proposals in accordance with regulation 7.

(8) Decisions taken by the Commission to prolong a

suspension, or withdraw permission definitively may be appealed by

the sports organisation or third-party operator, as the case may be,

within seven (7) days from the decision of the Commission, by

written appeal to the Appeals Panel.

(9) The Appeals Panel shall take a decision on such an

appeal within sixty (60) days from notification of the appeal to all

parties. The decision of the Appeals Panel shall be final and binding.

(10) Any suspension of the permission to carry out

commercial activity decided upon by SportMalta or the Commission

under this regulation may be lifted by the body that has taken the

decision to issue the suspension, whenever it is satisfied that the

sports organisation or the third-party operator, as the case may be, has

cured its default.

(1)

SportMalta has the authority to withhold

partially, or in whole, funding or other non-financial support to

national associations and any other sporting bodies over which it has

authority that do not endorse and comply with these regulations.

(1)

All information provided by the sports

organisation to the Commission under these regulations shall be

maintained in strict confidence at all times subject only to the legal

obligations of the Commission

(2)

The Commission shall publish annually, a general

statistical report of its activities during the previous calendar year by

April of the following year with a copy provided to SportMalta and the

Lands Authority.

(3) The Commission may collect, store, process or disclose

personal information relating to any person where necessary and

appropriate to conduct its activities under these regulations,

according to the Data Protection Act.

(1)

The Commission may, from time to time, issue

commentaries implementing procedures and guidelines.

(2) Guidelines issued by the Commission shall be

considered as an integral part of these regulations.

(3) Guidelines issued in accordance with sub-regulation (2)

shall be published as a Schedule to these regulations and may be

published in the English language only.

"Commercial Sports Facilities Commission

Schedule 1 - Application form for the commercialisation of a

sports facility

(regulation 4(2)(i))

This application is intended for any sports organisation which

intends to carry out a commercial activity as defined in these

regulations.

1. Name of

applicant

2. Registration number as

a sports person

3. Official

address of the applicant

4. Attach to this application the following documents (any

missing documents shall render the application incomplete)

Item

Pg.

1. A list of all committee

☐

members of the sports

organisation

with

clear

indications

as

to

the

responsibility held by each

member.

COMMERCIALISATION OF SPORTS FACILITIES

2. Signed declaration as

☐

to

who

the

legal

representatives of the sports

organisation are.

3. A detailed written

☐

explanation of the type of

commercial activity being

proposed.

4. Confirmation

on

☐

whether a third-party operator

shall be involved or not

5. A plan drawn up by a

☐

perit that identifies the area of

the sports facility that shall be

used as a sports area and the

commercial area. The plan

shall contain all necessary

designs and plans on how the

sports facility shall be

structured, including both

commercial and sports areas.

6. A declaration clearly

☐

indicating the number of

square metres which shall be

used for the sports area (the

proposed sports area shall

never be less in size than the

area which is currently being

used exclusively for the

practice

of

the

sports

discipline for which the sport

organisation is registered

with SportMalta). The sports

area and the sports ancillary

area shall not be less than

60% of the total floorspace.

7. A signed declaration

☐

on the estimated time for the

completion

of

any

infrastructural works that

shall be carried out in the

sports facility prior to the

start of the commercial

activity.

COMMERCIALISATION OF SPORTS FACILITIES

8. A sworn declaration

☐

made

by

the

legal

representatives of the sports

organisation confirming that

the application is being made

by the sports organisation

according to these regulations

and

that

the

sports

organisation is aware and

understands all its rights and

obligations according to these

regulations and that any

eventual public deed shall

require prior approval by

resolution of the House of

Representatives.

9. Proof of title to the

☐

land

proposed

for

commercialisation.

Signature

of

applicant

Date

For internal use

1. Date

when

application was received

2. Date

when

application was reviewed

3. Complete

application (yes and, or no and

reason)

4. Date when applicant

received service of approval and,

or that the application is

incomplete.

Schedule 2 - Declaration by audit firm in accordance with

regulation 4(4a)

I

_____________the

undersigned

_______________(ID)

________________as duly authorised to make this declaration on

behalf of the audit firm __________________________ hereby

confirm that the sports organisation __________________________

has satisfied the requirements as referred to in regulation 4(4a) and

that the information provided therein is complete, authentic, correct

and in conformity with all the provisions of these regulations.

Date

Signature

Stamp

Schedule 3

Checklist to be included in the audit report in accordance with the proviso to regulation 4(5)

Documents

Regulation

Reference page

number in the

report

1. Business plan in accordance with regulation

4(4)(a)

4(4)(a)

2. 4(4)(a)

Key performance indicators

- The targeted yearly turnover

- The targeted overall jobs creation per year

- A monetary equivalent quantification of the

yearly benefits to the sport organization

3. 4(4)(c)

Documents proving that all natural persons

forming part of the committee of the sports

organisation fulfil the criteria set out in

regulation 7(3).

4. 6 (6)

Full development permits according to law.

5. 4(5)(a)

Confirmation that the project is intended to lead

to the infrastructural, financial and sportive

growth of the sports organisation.

6. 4(5)(b)

Confirmation that the timeframes proposed are

realistic.

COMMERCIALISATION OF SPORTS FACILITIES

7. 4(5)(c)

Evaluation on whether the sports organization

and, or third party operator are financially

capable to start the commercial activity and

whether they are financially viable to manage

and sustain a prolonged commercial operation.

TO BE FILLED ONLY IF THERE IS A THIRD PARTY

4(4)(b)

8. Authenticated copy of all contracts concluded

with third parties

7(3)

9. Confirmation that the third-party operator is a

legal person as described in regulation 7(3).

7(6)

10. Confirmation that the agreement with a third

party contains the minimum requirements

established in regulation 7(6).

Documents proving that all natural persons being

4(4)(c)

11. the members, directors, shareholders and, or ulti-

mate beneficial owner of any third-party operator,

which can be both a natural person or a legal per-

son, that has entered into a development and man-

agement agreement with the sports organization

according to regulation 7 satisfy the criteria set

out in regulation 7(3).

Confirmation that the process of adjudication of

4(5)(d)

12. the request for proposals has been carried out cor-

rectly in conformity with the conditions set in the

request for proposal.

Confirmation that the owners, members, directors

7(5)

and, or ultimate beneficial owners of the third par-

ty operator are not undesirable persons after a due

diligence assessment has been carried out correct-

ly.