L.S. 455.12 Regolamenti dwar il-Kummerċjalizzazzjoni tal-Faċilitajiet Sportivi

(1)The title of these regulations Commercialisation of Sports Facilities Regulations. is the

(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.

1. In these regulations, unless the context otherwise requires: "Act" means the Sports Act; Citation. Scope. Interpretation. Amended by: L.N. 213 of
2. Cap.
3. "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 Cap.
4. 2 [ S.L. 455.12 COMMERCIALISATION OF SPORTS FACILITIES 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; [ S.L. 455.12 COMMERCIALISATION OF SPORTS FACILITIES "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 Act; "Undesirable Person" means a person who: (a) committed: has been convicted of a crime, wherever (i) against the safety of the Government in terms of articles fifty-five, fifty-six, fifty-seven, fiftyeight 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 Cap.
5. Cap.
6. (iii) specified in the Schedule to the Extradition Act, and liable to a term of imprisonment of more than three years; Cap.
7. (iv) against Laundering Act; Money Cap.
8. (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; Cap.
9. Cap.
10. (vi) against Sub-Titles IVA and B of Title IX of Part II of Book First of the Criminal Code; Cap.
11. the Prevention of (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; Cap.
12. 3 4 [ S.L. 455.12 COMMERCIALISATION OF SPORTS FACILITIES (e) being a legal entity, the director, the administrator or other officer or the controlling shareholder of which is: (i) (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. Cap.
13. Establishment of the Commission and the Appeals Panel. Amended by: L.N. 213 of 2022; L.N. 61 of
14. an Undesirable Person, or 3.

(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: (

1. a)supervising the correct implementation of these regulations; (
2. b)evaluating, approving or rejecting applications made under these regulations; (
3. c)monitoring the performance of the commercial activities being carried out by sports organizations within sports facilities; and (
4. d)ensuring that regulations are being achieved. the objectives of these

(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)(

1. a)The Chairperson of the Appeals Panel shall be appointed by the Minister responsible for Sport; (
2. 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. COMMERCIALISATION OF SPORTS FACILITIES [ S.L. 455.12 5

(7)The Appeals Panel shall hear and decide appeals made by sports organizations from the refusal of applications by the Commission. 4.

(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 subregulation

(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: (

1. a)the name, registration number as a sports person and official address of the applicant; (
2. b)a list of all committee members of the sports organisation, with clear indication as to the responsibility held by each committee member; (
3. c)a signed declaration as to who are the legal representatives of the sports organisation; (
4. d)a detailed written explanation of the type of commercial activity proposed to be carried out within the sports facility by the applicant; (
5. 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; Application for commercial-isation of a sports facility. Substituted by: L.N. 213 of 2022. Amended by: L.N. 61 of 2023. 6 [ S.L. 455.12 COMMERCIALISATION OF SPORTS FACILITIES (
6. 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; (
7. 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; (
8. h)proof of title over the land proposed for commercialisation; (
9. 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: (

1. a)(
2. b)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; (
3. i)the targeted yearly turnover; (
4. ii)the targeted overall yearly job creation; (iii) a monetary equivalent quantification of the yearly benefits to the sport organisation; produce an authenticated copy of any development COMMERCIALISATION OF SPORTS FACILITIES [ S.L. 455.12 7 and management contract concluded with a thirdparty operator according to regulation 7; (
5. 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)shall: The audit firm is also to provide an audit report which (

1. a)assess and confirm whether the project is intended to lead to the infrastructural, financial and sportive growth of the sports organization; (
2. b)confirm whether the time-frames proposed are realistic; (
3. 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; (
4. 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; (
5. 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: Appointment and duties of the Technical Committee. 8 [ S.L. 455.12 COMMERCIALISATION OF SPORTS FACILITIES Provided further that following the submission of the declaration and report required in sub-regulation

(4a)and this subregulation, 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. Decisions of the Commission. Appeal.

(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)absolute. The decision of the Appeals Panel shall be final and

(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. New contract of temporary emphyteusis. Substituted by: L.N. 213 of 2022. Amended by: L.N. 61 of 2023. 5.

(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; (

1. b)a declaration as to the total footprint in square COMMERCIALISATION OF SPORTS FACILITIES [ S.L. 455.12 metres of the sports facility; (
2. 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; (
3. 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; (
4. e)a declaration as to the precise footprint in square metres of the minimum designated sports area and the maximum designated commercial area; (
5. 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; (
6. 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; (
7. 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; (
8. 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; (
9. 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. 9 10 [ S.L. 455.12 Cap. 573. Valuation of the land. Substituted by: L.N. 213 of 2022. Amended by: L.N. 61 of 2023. COMMERCIALISATION OF SPORTS FACILITIES

(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. 6.

(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. Ground rents payable.

(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 subregulation

(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. COMMERCIALISATION OF SPORTS FACILITIES [ S.L. 455.12

(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. 11 Development permits.

(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. 7.

(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: (

1. 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 (
2. b)a legal person established jointly by the sports organisation and another legal person which is not a sports organisation; or (
3. 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 Third-party operators. Amended by: L.N. 213 of 2022; L.N. 61 of 2023. 12 [ S.L. 455.12 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 thirdparty operator for the development and, or the management of the commercial activity within the sports facility, according to subregulation

(1), shall contain the following minimum requirements: (

1. a)the name and address of the legal person that will be the third-party operator; (
2. 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; (
3. c)the term of the contract which shall never exceed the term of the emphytheusis granted to the sports organisation; (
4. 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; (
5. 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; (
6. 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; (
7. 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; (
8. 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 COMMERCIALISATION OF SPORTS FACILITIES [ S.L. 455.12 operator not effect such payments on time; (
9. i)a declaration by the third-party operator that it is accepting responsibility for: (
10. i)any sanction for non-compliance with these regulations or with the terms imposed by the Commission; (
11. ii)the suspension or closing down of the commercial activity for non-compliance with these regulations; (
12. 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; (
13. 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.

1. 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. Financing. 13 14 [ S.L. 455.12 Monitoring and enforcement. Amended by: L.N. 61 of
2. COMMERCIALISATION OF SPORTS FACILITIES 9.

(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: (

1. 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; (
2. 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; (
3. 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: (

1. i)thirty percent (30%) between the third-party developer and, or operator, (
2. 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 COMMERCIALISATION OF SPORTS FACILITIES [ S.L. 455.12 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 thirdparty 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)(

1. a)in its first year of commercial operations; (
2. 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: (

1. a)engaging in any criminal activity within the commercial area; or is tolerating such activity; or (
2. b)engaging in any commercial activity for which the Commission had not granted permission according to regulation 4; or (
3. c)declared bankrupt; or (
4. 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 (
5. e)repeatedly not paying the ground-rent on the sports facility or the rates payable due on the commercial area on time, 15 16 [ S.L. 455.12 COMMERCIALISATION OF SPORTS FACILITIES 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. Withholding of funds. 10.

(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. Compliance with regulations. 11.

(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 COMMERCIALISATION OF SPORTS FACILITIES [ S.L. 455.12 17 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. Cap. 586. 12.

(1)The Commission may, from time to time, issue commentaries implementing procedures and guidelines. Issuing of commentaries and guidelines.

(2)Guidelines issued by the Commission shall be considered as an integral part of these regulations. Substituted by: L.N. 213 of 2022. Amended by: L.N. 61 of 2023.

(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.
5. A list of all committee ☐ members of the sports organisation with clear indications as to the responsibility held by each member. Added by: L.N. 61 of
6. 18 [ S.L. 455.12 COMMERCIALISATION OF SPORTS FACILITIES
12. Signed declaration as to who the legal representatives of the sports organisation are. A detailed written explanation of the type of commercial activity being proposed. Confirmation on whether a third-party operator shall be involved or not 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. 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. 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
14. 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. Proof of title to the land proposed for commercialisation. Signature applicant Date ☐ ☐ of For internal use
15. Date when application was received
16. Date when application was reviewed
17. Complete application (yes and, or no and reason)
18. 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)[ S.L. 455.12 19 [ S.L. 455.12 20 COMMERCIALISATION OF SPORTS FACILITIES 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. 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

(4)(c) 4. Full development permits according to law. 6

(6)5. Confirmation that the project is intended to lead to the infrastructural, financial and sportive growth of the sports organisation. 4

(5)(a) 6. Confirmation that the timeframes proposed are realistic. 4

(5)(b) COMMERCIALISATION OF SPORTS FACILITIES [ S.L. 455.12 7. 4

(5)(c) 8. 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) Authenticated copy of all contracts concluded with third parties 9. Confirmation that the third-party operator is a legal person as described in regulation 7

(3). 7

(3)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 the members, directors, shareholders and, or ultimate beneficial owner of any third-party operator, which can be both a natural person or a legal person, that has entered into a development and management 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 the request for proposals has been carried out correctly in conformity with the conditions set in the request for proposal. Confirmation 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 correctly. 7

(4)(c) 4

(5)(d) 7

(5)21