sportscotland Sport and Multifunctional Recreational Infrastructures Scheme
Scheme Reference number: SC10446 (previously SC10321)
Legal basis
This scheme operates under the UK/EU and EAEC: Trade and Cooperation Agreement [TS No. 8/2021], as of 01 January, 2022.
The Scottish Sports Council trading as “sportscotland” is an organisation incorporated by Royal Charter, and the national agency for sport in Scotland. In order to further sportscotland’s objectives, sportscotland has the power to make grants or loans on such terms as sportscotland shall deem fit. The statutory authority for payment of grants is Section 3 of the Physical training and Recreation Act 1937. Accordingly, sportscotland may provide funding to assist with the provision of Sport and Multifunctional Recreational Infrastructures.
sportscotland is an organisation responsible for distributing Scotland’s share of the National Lottery monies devoted to sport. It was appointed as a distributor under the National Lottery etc Act 1993 (as amended by the National Lottery Acts 1998 and 2006).
Objective
The Scheme covers discretionary funding awarded to sports clubs, hubs and other sporting enterprises to assist in the areas of the development, refurbishment, expansion and ongoing operation of sport and multifunctional recreational facilities.
Subsidies can be awarded to organisations of all sizes.
The principal objective of The Scheme is to encourage investment in the development of sporting facilities, improve accessibility to those facilities and help create a world class sporting system for everyone in Scotland.
General provisions
There is no automatic entitlement to support from sportscotland. An offer of award of grant funding may be made to an applicant, based on the merits of the proposed project, and an assessment of need for assistance. Any award of funding is subject to rigorous due diligence appraisal and internal approval by sportscotland.
Applicants must submit an application form to sportscotland for assessment and decision on the level of award before work on the project has started, and the application and offer of award terms and conditions must be approved in writing before the work can commence on the project. sportscotland is required to provide quarterly returns to the Scottish Government on awards of over £100,000 detailing the subsidy provided under this Scheme, and to maintain detailed records regarding individual subsidies provided under the Scheme. Such records must contain all information necessary to establish that the conditions are fulfilled, including information on the incentive effect of the aid and information making it possible to establish the precise amount of eligible costs . Records must be maintained for 10 years from the date on which the last subsidy was granted under the Scheme. The information which must be provided to sportscotland and/or retained by the grant recipient will be set out in any offer of award made under the Scheme.
Transparency of subsidies
Only a subsidy which can be precisely calculated at the point at which it is awarded will be provided under the Scheme. Such aid may include grants.
Specific rules relating to aid for sport and multifunctional recreational infrastructures
Aid for sport and multifunctional infrastructures may be provided. In particular:
Sports infrastructure not used exclusively by a single professional sport user. Use of the infrastructure by other professional or non-professional sports users shall annually account for at least 20% of time capacity. Where the infrastructure is used by several users at the same time, corresponding fractions of time capacity usage shall be calculated.
Multifunctional recreational infrastructures shall have facilities with a multi-functional character, offering in particular cultural and recreational services.
Access to the sport or multifunctional recreational infrastructures must be open to several users and granted on a transparent and non-discriminatory basis. Any undertaking that has funded at least 30% of the investment costs of the infrastructure may be granted preferential access to the facility under more favourable conditions. These conditions must be made publicly available.
Where the sport infrastructure is used by a professional sports club, the pricing conditions for its use will be made publicly available.
Any concession or entrustment to a third-party to construct, upgrade and/or operate the sport or multi-functional recreational infrastructure will be assigned on an open, transparent and non-discriminatory basis and in line with UK procurement rules.
Eligible costs
The aid may take the form of investment aid and/or operating aid.
Eligible costs for investment aid are the investment costs in tangible and intangible assets.
Eligible costs for operating aid for sport infrastructure are the operating costs of the provision of services by the infrastructure. These include, but are not limited to: personnel costs, materials, contracted services, communications, energy, maintenance, rent, administration. Depreciation charges and the costs of financing are excluded if they have been covered by investment aid.
Aid amounts
For investment aid the amount will not exceed the difference between the eligible costs and the operating profit of the investment. The operating profit shall be deducted from the eligible costs ex ante on the basis of reasonable projections, or through a claw-back mechanism.
For operating aid for sports infrastructure the aid amount will not exceed the operating losses over the relevant period. This will be ensured ex ante, on the basis of reasonable projections, or through a claw-back mechanism.
As an alternative, where the aid amount does not exceed €1m the maximum aid amount may be set at 80% of eligible costs.
Cumulation of aid
Aid provided under the Scheme may be cumulated with other forms of aid and provided through this scheme as long as those aid measures concern different identifiable eligible costs.
Aid provided under this Scheme may only be cumulated with other aid exempted under the Regulation and/or the de minimis regulation, where, in respect of the same totally or partially overlapping eligible costs, such cumulation does not result in the highest aid intensity or aid amount applicable and/or relevant scheme(s) being exceeded.
All sources of public funding shall be taken into account when considering cumulation and in determining that the relevant aid intensity or aid amount is not exceeded.
[1] It should be noted that the aid amounts stated reflect the maximum levels of support permitted and sportscotland may set lower aid intensities and/or thresholds for specific projects under the Scheme.