UK Law and Practice Contributed by: Jamie Singer and Flora Peel, Onside Law
forcing the EFL to act against the club by issuing a 12-point deduction. • In 2024, the Premier League and its inde - pendent oversight panel (IOP) approved changes to the ODT rules, introducing Rule F35. This rule requires that any proposed change of “control” in a Premier League club must undergo review by the IOP before being approved. Sir Jim Ratcliffe’s acquisition of a stake in Manchester United was the first case assessed under this new rule. Further chang - es to the ODT include the introduction of the “Acquisition Leverage Test” , which bans fully leveraged buyouts of football clubs. The ODTs are not restricted to football, with other sports bodies such as the Rugby Foot - ball League administering a similar test which requires influential persons at a club under its jurisdiction to satisfy certain requirements. However, the football ODTs, in particular, tend to come under more scrutiny. Other Sporting organisations (and their officers) must also comply with applicable laws. For example, the Companies Act 2006 sets out a number of codified duties for directors of companies. 4.3 Funding of Sport Traditional Revenue Streams UK sporting organisations such as national governing bodies, leagues and clubs principally derive revenue by exploiting their commercial rights, as set out in 2. Commercial Rights . The COVID-19 pandemic had a significant impact on such traditional revenue streams, with the lack of live sport and the behind-closed- doors action hitting match-day revenue and providing sponsors and broadcasters with the
power to renegotiate deals, particularly if rights could not be delivered. UK Government The UK government reacted to the short-term financial distress suffered by many UK sport - ing organisations due to the effect of COVID-19 by providing specific financial support to sport. While the sports industry was not as heavily impacted by the COVID-19 pandemic during the 2021–22 period (largely because live sport was not put on hold and attendance at live events was limited rather than restricted), the UK gov - ernment worked closely with Sport England to make funds available, as detailed below. Addi - tionally, it announced in October 2024 a GBP344 million investment to support athletes ahead of the Los Angeles 2028 Olympic and Paralympic Games, making it the greatest investment to date. In October 2024, the government announced the Multi-Sport Grassroots Facilities Programme was investing GBP123 million in 2024/25 to sup - port facilities across the whole of the UK. Sport England Many national governing bodies and sports bodies are eligible to obtain central funding through Sport England (established by Royal Charter in 1996). Sport England invests in the region of GBP250 million of National Lottery and public money every year, supporting over 130 long-term partners. Each organisation receives funding for up to five years, with each partner assessed against their ability to deliver on Sport England’s strategy, which focuses on addressing inequalities and facilitating access to sports and physical activity.
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