Much has been said about the impact commercial projects related to sports facilities will have on the country. The building of hotels, the erosion of green areas and the uncontrollable development that these devilish projects will carry out behind the saintly excuse of sport have propelled the public into an apocalyptic scenario where greed and extermination will take over.

However, this cannot be further from the truth. A cursory look at the new ‘Regulations on the Commercialisation of Sports Facilities’ will instantly show that most of the tragic things that have been said to be happening soon, won’t and can never happen.

Before commenting on the actual regulations, it’s best to understand why such legislation has been promulgated. Until today, all local sports organisations have been, and are still being run, by enthusiasts who give up time and energy, with scarce financial resources. The desire to compete on an international level has increased the need for more state-of-the-art professional facilities that should allow athletes to have the best possible training for these events.

However, with funds being so minimal, the progress made in most disciplines, compared to other countries of our stature, has been negligible. This has led these organisations to make more onerous requests to the government for financial assistance.

The government has done its best over the years to help, but nowadays the funds available do not go close to what is required to compete. Thinking outside the box was required, and from this scenario an innovative idea cropped up by which sports organisations could start generating income themselves and be self-sufficient. The idea was simple: if sports organisations were to use their facilities to generate income through commercial activity, they would be able to generate the required income to upgrade their facilities and invest in proper coaches and equipment for their athletes.

Legislation was needed to make sure that this idea generated maximum benefits and reduced risks to a minimum.

The new regulations specify what commercial activity can be carried out within the sports facility, how the actual sports facility is to be protected from commercial development, who can invest and how, and most importantly what happens when sports organisations and their investors breach the regulations.

Malta can become the top sports-tourist destination in Europe. This is a golden opportunity we cannot miss

This was done to make sure that the ultimate aim of the idea reflects what has to happen in reality, and that is for the commercial activity to service sport and not the other way round.

The sports organisation will be also limited as to what commercial projects can be proposed. The regulations state that no nightclubs, gambling shops, hotels and other residential units will be allowed.

Much has been said about the building of hotels in sports facilities. This is a strong misconception, and a lack of reading of the law, as the regulations make it clear that projects proposing the building of a hotel cannot be accepted by the commission.

Only the operation of a hostel, as defined in the Malta Travel and Tourism Services Act, whose use will be to house sports teams for training camps and competitions, will be considered.

Another important aspect of the new legislation deals with the investment that can be made. The regulations put the onus on the commission not only to judge the viability of the actual project but also to decide on whether an investor is fit for purpose.

Investors have to be of good financial standing and must undergo proper due diligence before a formal application seeking approval for a commercial project is made. Moreover, funding for a project cannot be obtained through a loan burdening the sports facility.

Investors must have funds available from their own wealth.

Finally, the law also states that projects approved by the commission will still be required to obtain the necessary development permits from the Planning Authority. This should guarantee that all planning and environmental issues will be taken into consideration, and if the commission approves a project, the PA can still refuse permission.

SportMalta will be tasked with the monitoring and enforcement of these projects, and should a project not be run according to the instructions set out in the permission granted by the commission, there are heavy sanctions which can be applied, including the closure of the commercial part of the sports facility.

Through this law sport will finally become a proper industry, the economy will grow, and many new jobs will be created. There is an ever-growing demand from foreign sports organisations to hold training camps in Malta. These are currently not coming here because our facilities are not up to standard.

So, this is a golden opportunity we cannot miss. In a few years government will not even need to increase its budget on sport, as it will start funding itself, I dare say better than today.

It’s time to start seeing the great things our country can do rather than treat every initiative as a ploy for speculation and land grabbing. A look at the positives these projects will bring in the coming months and years really helps.

Chris Bonett is a sports lawyer and currently senior consultant at the Parliamentary Secretariat for Youth, Sport and Voluntary Organisations.