S.L. 455.12 ст. 7Third-party operators.

(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 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.