Sport organisations will be able to boost their finances under a government proposal allowing the partial outsourcing of their facilities for commercial purposes, including shopping centres.
While no betting shops and nightclubs will be allowed in these complexes, which are also frequented by children, applications for hostels meant to accommodate athletes will be considered.
The recommendations in the form of a White Paper were unveiled yesterday by Sport Parliamentary Secretary Chris Agius at a news conference at the Ta’ Qali Basketball Pavilion. The event marked the launch of a public consultation period, which will pave the way for a series of amendments to the Sports Act.
By law public land can be transferred to sports organisations registered with Sport Malta (previously known as the Kunsill Malti għall-Isport) through some form of legal title. In most cases the land was passed through a 49-year emphyteusis or for a period of 16 years renewable for two other terms.
The aim of this reform was to create new streams of revenue enabling sports entities to cover their recurrent expenditure
Mr Agius said the aim of this reform was to create new streams of revenue enabling sports entities to cover their recurrent expenditure as well as invest in new facilities for their members.
The White Paper proposes the creation of regulations, by virtue of a legal notice under the Sports Act, through which organisations could lease part of their land to third parties or enter into commercial partnerships. Any attempts to reduce the existing sports facilities to free up more space for commercialisation would not be allowed, the parliamentary secretary said.
The legal notice will also establish a regulator whose function will be to have the final say on these projects and enforce provisions and contractual obligations by sports organisations. The latter will be obliged to present annual audited financial statements for the commercial activities, in line with the Companies Act.
Lawyer Chris Bonnet who drafted the White Paper said these changes would not oblige clubs to become a company nor alter the existing framework regulating the criteria through which public land is given to sports entities.
The consultation period will close at the end of March and submissions can be filed on sportsfacilities.mede@gov.mt.