The launch of the White Paper on the commercialisation of sports facilities has been generally welcomed as the proposed legislation addresses the long-felt need to explore new revenue streams for sports associations and clubs.
It is no secret that in a country where sponsorships are at a premium and financial assistance by the government hardly meets the needs of sports entities, maximising the use of sports facilities has the potential to boost income.
In a nutshell, the idea is to have legislation that would allow national associations as well as football and waterpolo clubs to carry out commercial activity within their sports facilities, provided they have a 49-year temporary emphytheusis on such facilities.
Many sports organisations have been granted such a 49-year temporary emphy-theusis (with ground rents subsidised at 95-98 per cent) on condition the premises are used for sports purposes only.
The prevailing situation means most clubs and sports organisations are over-reliant on a small number of benevolent officials to keep their heads above water. The proposed law would enable them to generate extra income by using parts of their premises for commercial purposes.
The Malta Football Association is a good example of how a sports organisation can use its facilities to augment revenue streams by offering services that are in sync with its mission. The indoor pool, gymnasium and new physiotherapy clinic attract hundreds of paying members on a daily basis.
Over the past decade, several foreign investors expressed an interest in joining forces with Maltese clubs, especially in football, only to turn away upon learning of the existing restrictions on the use of sports facilities for commercial purposes.
The new legislation will pave the way for private investors to partake in commercial activity but it is here where the national associations and clubs must tread with the utmost caution.
Not all that glitters is gold, the old saying goes, and sports administrators must be wary of overzealous and shady businessmen who might see sports associations and clubs as easy prey for their malicious intents.
There have already been a few cases of Maltese clubs that trumpeted partnership deals with foreign individuals in the hope of alleviating their financial woes only to discover that their new backers had ulterior motives not in line with the club’s values and targets.
The early signs are promising because the government has pledged to include safeguards in the legislation to ensure that sports facilities on public land will not be exploited for speculation purposes.
Also, investors will only be allowed to carry out commercial activity without affecting the legal title of the land. It is imperative that, when the proposed legislation gets the green light from the House of Representatives, the powers-that-be conduct thorough checks on potential investors and the type of commercial activity being proposed through effective monitoring and enforcement mechanisms to prevent the misuse of such facilities.
All in all, the move to allow the commercialisation of sports facilities is a positive step, one that should bring Malta in line with mainland Europe where sporting venues and the surrounding areas teem with retail activity.
Besides generating much-needed revenue for sports organisations and clubs, the proposed legislation also has the potential to boost the local economy with the creation of new jobs.
However, sports entities are in duty bound to always give top priority to the interests of members when deciding what type of commercial activity and investors they want to allow in their facilities.