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LAUNCH OF JUST SPORT IRELAND
Just Sport Ireland was officially launched by the Federation of Irish Sports at a ceremony at Croke Park on Thursday 25th October at which the Attorney General, Mr. Paul Gallagher S.C. was the guest of honour. Please read below for more details.
UPDATE ON SPORTS CAMPUS AT ABBOTSTOWN
Interested in the latest developments at Abbotstown? The Federation recently met with the National Sports Campus Development Authority to get an up to date report on the project's current status. Please read below for more details.
FEDERATION MAKES SUBMISSION TO DEPARTMENT IN CONNECTION WITH THEIR FORTHCOMING SATEMENT OF STRATEGY 2008 - 2010
The Department of Arts Sport and Tourism is required by law to prepare a statment of strategy for the forthcoming three year period, 2008 - 2010. Details of the Federation's submission to the Department in this regard are set out below.
FEDERATION SEEKS EXTENSION TO CURRENT TAX RELIEF SCHEME FOR DONATIONS TO SPORTING BODIES
The FIS has made an initial submission to the government seeking an extension to the existing scheme to encompass donations made in connection with sport development programmes and elite athlete campaigns. Please read on for more details.
LAUNCH OF JUST SPORT IRELAND
“Sports organisations do best to resolve differences under their own governing codes, rather than resource to courts of law. Issues of natural justice are important but the substance of matters rather than their form is important in seeking to resolve internal disputes in such organisations and recourse to the courts should be a last resort, and only in the rarest of cases”. Justice Smyth, High Court, 2007.
In recent years almost all of Ireland’s leading sports organisations have found themselves in court defending themselves against aggrieved athletes or clubs on issues ranging from disciplinary maters, eligibility, admission to competition to composition of leagues or registration. Such court actions can be time consuming, costly and bitter. It is against that background that the Federation of Irish Sport has set up Just Sport Ireland - “an independent specialised dispute resolution service for Irish sport”.
Speaking at the launch, the Attorney General, Mr. Paul Gallagher S.C. predicted a bright future for JSI:
"What I think will make this a successful initiative is the quality of the people that are associated with it. And the quality of people that will see it implemented. The whole concept of sport and litigation sit uneasily, but that is not to say that people in sport do not, from time to time, have genuine grievances. The challenge which has not been met up until now is to find a mechanism for resolving those grievances in a way that is consistent with the spirit of sport, and avoids the unnecessary trappings of litigation.
There are a number of features in both the mediation and arbitration aspect, that in my view make this a most suitable mechanism. You also have the advantage of specialisation, with the people involved in resolving the disputes having a knowledge and understanding of the issues."
The remit for JSI is quite simple – keep sport out of the courts by providing a first class independent specialised dispute resolution service that works. The model devised by the Federation offers both a mediation and arbitration facility.
The Federation of Irish Sports commends the rules of JSI to all national governing bodies of Irish sports and their members as a fair, inexpensive and expeditious method of resolving disputes. The Federation encourages all governing bodies to make the necessary rule change ensuring mandatory referral to JSI as a method of resolving disputes that remain unresolved after the procedures provided for within the sport have been exhausted. It is recognised by JSI, that some of the major sports bodies in Ireland already have their own advanced internal dispute resolution bodies and mechanisms upon which they rely. It is hoped that in time that JSI’s track record will be such that JSI might become the centre of choice for these organisations also.
This was emphasised by Sarah O’Connor, CEO of the Federation of Irish Sports speaking at the launch who emphasised that fact that JSI had not been set up to replace the procedures already in place in individual sports. She said the services being provided by JSI will in most instances only come into play when a sports own procedures have not resolved the dispute to the satisfaction of both parties.
“I would point out that the way in which arbitration and mediation works is that a dispute can only be submitted to arbitration / mediation if both parties to a dispute agree to it or there is a pre-existing agreement in the rules of a governing body stating that any dispute that arises is to be submitted to arbitration / mediation. It should also be noted that while the service provided by JSI is being provided for the entire sporting community in Ireland whether or not each sports chooses to use it as a matter of course is in the hands of each sporting organisation themselves. Basketball Ireland have already inserted a clause into the governing rules providing for mandatory referral to JSI and Special Olympics are proposing to make a similar change.”
“It is a principal aim of JSI that the mediation and arbitration processes offered by it will be cost effective. We recognise that resources for many sports organisations and amateur athletes are scarce. Therefore, JSI seeks to provide more favourable alternatives to pursuing what can be an expensive, protracted High Court action, with all the potential for adverse publicity and damaging relations, such an action can entail, largely avoided. Thus JSI is designed so that parties need not be represented by lawyers, whether they are a sporting body, a national governing body or an athlete. The parties may represent themselves.”
JSI aims to provide a fair impartial and efficient means of resolving sporting disputes that will help ensure justice and fairness in sport. JSI is an entirely independent body, can ensure response time to suit the nature of sporting disputes, has fee levels that reflect the resources available to sporting bodies, will resolve disputes away from the public glare and will commit to giving whatever time is necessary to understand the case in question.
Ercus Stewart SC, chairman of JSI, stated at the launch that;-
Alternative dispute resolution has long been the procedure of choice in the international sporting world. Given the increasing volume of litigation permeating the Irish sporting world the establishment of Just Sport Ireland is a welcome and long-overdue development. The mediation and arbitration services provided Just Sport Ireland shall, at long last, provide the Irish Sporting Community with a fair, impartial, cost- effective and efficient means for resolving sporting disputes and help to ensure justice and fairness in sport.
Just Sport Ireland has been founded on the tenents of simplicity, accessibility and enforceability. Its establishment is a very welcome development for Irish sport and should assist in ensuring that the limited resources available to the majority of Irish sporting organisations are directed, as they should be, to sport itself and not consumed by expensive and lengthy court battles.”
Over the next few months, the Federation of Irish Sports will be endeavouring to contact each sport with a view to outlining the service offered by JSI and to explain the steps necessary to adopt JSI. It is hoped that in time JSI will become the venue of choice for all Irish sporting organisations in their efforts to resolve any disputes that arise fairly, independently, quickly and at a minimum cost.
In setting up Just Sport Ireland (JSI) the Federation of Irish Sports was assisted and supported by a number of different bodies to whom the Federation of Irish Sports is very grateful. These include:-
A&L Goodbody
The Bar Council of Ireland
The Irish Sports Council
One Resolve (specialist Irish mediation service)
Artizan Creative (web company)
Full details available on www.justsport.ie
UPDATE ON SPORTS CAMPUS AT ABBOTSTOWN
The National Sports Campus Development Authority (the “NSCDA”) was established by the government on the 1st January 2007 to:-
Develop a National Sports Campus on the Abbotstown site;
Furnish and equip that National Sports Campus;
Manage, operate and maintain the National Sports Campus; and
Encourage and promote the use of the National Sports Campus.
It has been confirmed that the following facilities will be included in Phase one of the National Sports Campus project.
National Field Sports Training Centre to include rugby, soccer and gaelic pitches together with an international standard hockey pitch;
National Indoor Training facility, it has yet to be confirmed precisely what sports will be catered for in the indoor complex;
Athlete accommodation together with sports science and medical facilities; and
All weather synthetic pitches for community use.
The building of headquarters in the former State Laboratory for the Football Association of Ireland (FAI)
In addition, it has been suggested that an Indoor Athletics track could be built alongside the indoor training facility although a decision for this has yet to be confirmed.
It is also intended to provide office space for the National Governing Bodies of Sport by renovating some of the existing building on the site.
There are currently three existing building on the site in addition to Abbotstown House. One of these buildings has currently been redeveloped and will be occupied by the FAI from the end of October. A number of offices in a second building have also been refurbished to house the Institute of Sport. It is proposed that the building in which the Institute are to be initially house will, in time be refurbished to house the NGBs with the Institute moving to the another third building.
The projected time for completion of Phase One of the National Sports Campus Project is currently 2011.
The NSCDA advertised a competition for a Project Management Team and a Design Team to manage the delivery of the project. The project life cycle including briefing, conceptual design, preliminary design, regulatory/permitting, detailed design, procurement, construction, commissioning and defects liability period in May 2007. Tenders have now been received but a decision has yet to be made as to the identity of the successful bidders.
A new Chief Executive has also yet to be appointed to the NSCDA following the appointment of the previous incumbent Mr. Donagh Morgan as Assistant Secretary in the Department of Arts, Sport & Tourism.
The members of the NSCDA are as follows:-
Dan Flinter, Mary Davis, Con Haugh, Sean Benton; William Attley; Tom Kiernan; John Treacy; Pat Hickey; Caroline Murphy; Christy O’Connell; Sean Donnelly and Miriam O’Callaghan.
Further details can be obtained from www.nscda.ie
FEDERATION MAKES SUBMISSION TO DEPARTMENT IN CONNECTION WITH THEIR FORTHCOMING SATEMENT OF STRATEGY 2008 - 2010
The Federation was asked by the Department of Arts, Sport & Tourism for its input and views regarding any strategic or cross-Departmental issues that the Federation believed should be identified and priorities in the 2008 - 2010 Statement of Strategy.
The Department, in seeking consultations, emphasised that the strategy would focus primarily on delivering the key commitments under the arts/culture, sport and tourism sectors in the Programme for Government, the National Development Plan 2007 - 2013, the Social Partnership Agreement Towards 2016 and other government strategies.
A full copy of the Federation's submission can be obtained from the Federation website, www.irishsports.ie
In making the submission, the Federation sought, in addition to recommending some of the issues it feels should be priortised over the next three year period, also highlighted some of the concerns expressed by the Federation membership regarding current sports policy.
FEDERATION SEEKS EXTENSION TO CURRENT TAX RELIEF SCHEME FOR DONATIONS TO SPORTING BODIES
1. Background
The Finance Act, 2002 introduced a scheme of tax relief for donations to certain sporting bodies (the “Scheme”) a summary of which has been set out below.
While, the Federation clearly welcomed the introduction of the Scheme, we believe that the restrictive circumstances in which the Scheme applies in practice, excludes the majority of governing bodies of sport in Ireland (“NGBs”) and the Local Sports Partnerships (the “LSPs”) from benefiting from the Scheme. This severely limits the potential of the Scheme to realise positive benefits for Irish Sport.
Reference is made to the regime operating in the UK which allows individuals to obtain relief from tax and inheritance tax for donations or gifts to Community and Amateur Sports Clubs (“CASCs”) for whatever purpose. Gifts of chargeable assets to CASCs by individuals or companies are treated as giving rise to neither gain nor loss for capital gains purposes. In addition, businesses that give goods or equipment that they make, sell or use to CASCs get relief for their gifts.
2. The Scheme as it currently operates
Section 847A of the Taxes Consolidation Act, 1997, as amended, (as introduced by Section 41 of the Finance Act, 2002) provides for a scheme of tax relief for relevant donations for the funding of approved projects.
2.1What is a relevant donation?
In order to be a “relevant donation” a donation must satisfy the following conditions:-
It is in the form of a sum of money and must in order to qualify for the relief be in excess of €250;
It is made to the approved sports body for the sole purpose of funding an approved project;
It is or will be applied by the approved sports body for the sole purpose of the approved project;
It is not otherwise deductible in computing the profits or gains of a trade or profession or deductible as an expense of management in computing the profits of a company;
It is not a donation qualifying for tax relief to an approved body under section 848A of the Taxes Consolidation Act, 1997 for example, charities.
It is not subject to a repayment;
The donor nor any person with the donor receives a benefit, either directly or indirectly as a result of making the donation;
The donation is not conditional on or related to the acquisition of property by the approved sports body (otherwise than by way of gift); and
In the case of individual donors, the individual must be resident in the state for the year of assessment in which the donation made.
2.2 What is an approved sports body?
An approved sports body is one which holds:-
A Certificate confirming that it has been established for the sole purpose of promoting amateur games or sports whose income is exempt from tax; and
A current valid tax clearance certificate.
2.3 What is an approved project?
An approved project under the Scheme means one or more of the following: -
the purchase, construction or refurbishment of a building or structure, or part of a building or structure to be used for sporting or recreation activities provided by the approved sports body;
the purchase of land to be used by the approved sports body for the provision of sporting or recreation facilities;
the purchase of permanently based equipment (excluding personal equipment) for use by the approved sports body in the provision of sporting or recreation facilities;
the improvement of the playing pitches, surfaces or facilities of the approved sports body; and
the repayment of, or the payment of interest on, money borrowed by the approved sports body on or after 1 May 2002 for any of the above purposes.
In summary, in order to qualify as an “approved project” the project must relate to the purchase or development of land, a building/structure or permanent facilities.
3.Limitations of the Scheme at present
The effectiveness of the Scheme is limited in two respects as set out below, both of which stem from the restrictive definition of “approved projects” The Scheme as it currently exists;
limits the type and nature of sports-related projects in relation to which tax relief can be obtained; and
effectively excludes the vast majority of NGBs and the LSPs from benefiting from the Scheme given that they do not have a significant legal interest in either land or permanent facilities. The Federation’s preliminary research indicates that only 11 of the 62 NGBs recognised by the Irish Sports Council have a significant legal interest i.e. they own or have a leasehold interest with more than 20 years to run in sports-related land or facilities.
4.Proposed Solution
The Federation recommends either: -
4.1 the removal of the requirement that a donation be in connection with an “approved project” so as to mirror the situation as it exists for charitable organisations under section 848A of the Taxes Consolidation Act, 1997;
OR
4.2the widening of the definition of “approved projects” to include;
Sports Development Projects run by and/or with the approval of the NGB of the relevant sport;
Funding of Elite Athlete Major Championships and Olympic Campaigns;
Purchase of non-permanent but essential sports equipment required in connection with training and sports development projects.
5. Reasons
5.1Increase attractiveness of investing in sport by the private sector thereby reduce the reliance of sports organisations on state funding
The majority of NGBs and local sport partnerships (“LSPs”) are currently heavily reliant on public funding simply to exist for example, public funding makes up 70% of Swim Ireland’s annual budget the remaining 30% coming from affiliation fees and sponsorship. 50% of Basketball Ireland’s annual budget comes from public funding. Its’ high participant numbers and consequent affiliation fees contributing to a lower percentage rate than would exist amongst smaller sports.
The NGBs and the LSPs are, in tandem with the Irish Sports Council, charged with the development of sport in Ireland at both grassroots and elite level. As highlighted above, each of these organisation is effectively excluded from benefiting from the Scheme as it currently operates due to the definition of “approved projects”.
In introducing the current scheme, the then Minister for State at the Department of Finance, Mr. Michael Cullen T.D. said “the government wants to supports sports bodies as they provide the means for people to enjoy healthy living & fulfilling leisure activities. They also contribute to the cultural life of the nation[1].”
The extension of the definition would increase the attractiveness to the private sector, both corporates and individuals, of investing in the NGBs and LSPs and would be of significant support to the NGBs and LSPs as they seek to provide the means for people to enjoy healthy living and fulfilling leisure activities.
5.2 Facilitate investment in people and programmes not just facilities.
The ERSI & Irish Sports Council Report entitled “Fair Play? Sport and Social Disadvantage in Ireland[2]” emphasised the need for investment in “people & programmes” rather than facilities focused investment.
“Central government and other agencies involved in sport policy have already determined a need to increase participation among the soically disadvantaged and made some efforts to do so. The main beneficiaries of public funding given to sport are the people who currently participate with clubs and organisations that receive grants for facilities……..If the goal of sports policy is to increase participation, especially among the disadvantaged public funding needs to move away form the provision of facilities and towards the creation of links between current non-participants and sporting organisations.[3]”
In our experience, the biggest single challenge facing the majority of NGBs as they seek to grow their sports at grassroots level is the lack of resources both financial and human to put the required developmental programmes in place. The proposed change would facilitate the raising of private sector capital to facilitate such developmental programmes.
5.3 Bring sporting bodies in line with position as it exists for charitable organisations.
The definition of charity under law[4] includes organisations that carry out “works of a charitable nature beneficial to the community”
The National Development Plan 2007 -2013 (the “NDP”) recognises the importance of sport to the social infrastructure stating at page 222, “Participation is sport, whether at the level of competitive sport, recreational sport or active leisure activity can yield physical and psychological well-being as well as fostering social development both in terms of the individual and the community.” The NDP goes on to highlight the importance of investment in sport in generating a positive impact by the “building of stronger communities.”[5]
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