Part 6

Distribution of revenue

Resolution process

The mediation stage
60
1
This section applies where the IFR gives a notice under section 59(6).
2
The two specified competition organisers to which the notice was given must appoint a mediator before the end of the period of 14 days beginning with the day on which the notice was given.
3
If the period mentioned in subsection (2) ends without an appointment having been made by the specified competition organisers, the IFR must appoint a mediator as soon as reasonably practicable after that period has ended.
4
The IFR may extend the period in subsection (2) by up to a further 28 days if it considers there are special reasons for doing so.
5
A person appointed as a mediator under subsection (3) must be a person who the IFR considers to have appropriate skills and experience.
6
A mediator appointed under this section must mediate negotiations between the specified competition organisers on the question or questions for resolution set out in a notice under section 59(6)(b)(i) until whichever of the following events occurs first—
a
the specified competition organisers resolve that question or those questions (whether by entering into a distribution agreement or otherwise);
b
the end of the period of 28 days beginning with the day on which the mediator is appointed;
c
the specified competition organisers agree to terminate the mediation;
d
the mediator notifies the specified competition organisers that the mediator considers—
i
that there is no reasonable prospect of the specified competition organisers resolving the question or questions for resolution set out in a notice under section 59(6)(b)(i) (whether by entering into a distribution agreement or otherwise) within the period mentioned in paragraph (b), or
ii
either of the specified competition organisers is acting in bad faith.
7
The IFR must extend the period in subsection (6)(b)—
a
if requested in writing to do so by the mediator, and
b
by such period as is set out in the request, which may be up to a further 28 days.
8
The period in subsection (6)(b) may only be extended once.
9
A notification under subsection (6)(d) must include reasons for the decision.

Proposal stage
61
1
This section applies where mediation under section 60 comes to an end by virtue of the occurrence of an event within section 60(6)(b), (c) or (d).
2
As soon as reasonably practicable after the occurrence of the event, the IFR must give notice to the two specified competition organisers.
3
A notice under subsection (2) must—
a
set out the question or questions for resolution,
b
specify the qualifying football season or seasons to which that question relates or those questions relate,
c
set out any findings in the IFR’s most recent state of the game report that the IFR considers relevant to that question or those questions,
d
invite each of the two specified competition organisers to submit to the IFR and to each other a proposal as to how that question or those questions should be resolved,
e
require any proposal to be accompanied by supporting evidence (including evidence as to how the proposal addresses the findings set out under paragraph (c)),
f
specify the day on or before which proposals are to be submitted.
4
A question for resolution may be set out in a notice under subsection (2) only if it is the question, or one of the questions, for resolution remaining unresolved when the mediation mentioned in subsection (1) came to an end.
5
Where a notice under subsection (2) sets out a question for resolution that relates to relegation revenue (within the meaning given by section 62(9)), the notice must require the specified competition organisers to explain in a proposal how the proposal will promote the financial sustainability of clubs which operate teams relegated from a competition organised by the specified competition organiser distributing the relegation revenue.
6
Subsection (7) applies if, on or before the day specified by virtue of subsection (3)(f), a specified competition organiser submits to the IFR a proposal which the IFR considers is not a qualifying proposal.
7
The IFR may give both specified competition organisers a notice specifying a later day (falling not more than seven days after the end of the day specified by virtue of subsection (3)(f)) on or before which proposals are to be submitted.
8
As soon as reasonably practicable after—
a
the initial proposal deadline, or
b
(if earlier) the day on which the IFR considers that both specified competition organisers have submitted qualifying proposals,
the IFR must give a notice under subsection (9) to the two specified competition organisers.
9
A notice under this subsection must—
a
state which of the two specified competition organisers (if any) has submitted a qualifying proposal before the initial proposal deadline,
b
invite each such specified competition organiser to—
i
confirm their proposal, or
ii
make any permitted modifications to their proposal,
and submit the confirmed or modified proposal to the IFR and the other specified competition organiser, and
c
specify the day on or before which the confirmed or modified proposal is to be submitted.
10
The IFR may specify in a notice under subsection (2) or (9) the form and manner in which proposals and supporting evidence must be submitted.
11
In this section—
a
“the initial proposal deadline” means—
i
the day referred to in subsection (3)(f), or
ii
where the IFR gives a notice under subsection (7), the day specified in the notice;
b
a “qualifying proposal” means a proposal which—
i
explains how the question or questions for resolution should be resolved, and
ii
complies with the requirements imposed by virtue of subsection (3)(e) and (5) (if applicable);
c
a modification to a proposal is “permitted” unless it results in the proposal no longer being a qualifying proposal.

Distribution orders
62
1
This section applies where the IFR has given a notice under section 61(9).
2
Before the end of the period of 60 days beginning with the day on which the notice under section 61(9) was given, the IFR must give the two specified competition organisers a notice of the distribution order it proposes to make.
3
The IFR may extend the period in subsection (2) by up to a further 14 days if it considers it appropriate to do so.
4
A notice under subsection (2) must—
a
give reasons for the proposed distribution order,
b
explain how the proposed order applies the principles mentioned in subsection (8),
c
explain how the proposed order addresses the findings set out under section 61(3)(c),
d
invite each of the two specified competition organisers to make representations about the proposed distribution order,
e
specify the period within which such representations may be made, and
f
specify the means by which they may be made,
and the IFR must have regard to any representations which are duly made.
5
The period specified under subsection (4)(d) must be a period of not less than 14 days beginning with the day on which the notice is given.
6
As soon as reasonably practicable after the end of the period specified under subsection (4)(d), the IFR must make an order requiring relevant revenue to be distributed in a way that the IFR considers appropriate for the purpose of resolving the question or questions for resolution set out under section 61(3)(a) (a “distribution order”).
7
In making a distribution order the IFR must—
a
apply the principles mentioned in subsection (8), and
b
have regard to any proposal submitted under section 61(9)(b).
See also section 7 (in particular the IFR’s general duty to exercise its functions in a way that advances one or more of its objectives and to have regard to various matters).
8
The principles referred to in subsection (7)(a) are that—
a
the distribution order should not place an undue burden on the commercial interests of either specified competition organiser, and
b
the distribution order should not result in a lower amount of relegation revenue being distributed to a club during the relevant period than would have been distributed to the club during that period had the order not been made.
9
For the purposes of subsection (8)—
- “relegation revenue” means revenue distributed by a specified competition organiser to a club in consequence of a team operated by the club being relegated from a specified competition organised by the specified competition organiser;
- “relevant period”, in relation to a distribution order, means the period of one year beginning with the final day of the first football season in respect of which relegation revenue would be distributed in pursuance of the order.
10
A distribution order—
a
must impose on the specified competition organisers such obligations as the IFR considers appropriate for the purpose of securing compliance with the requirements set out in the order, and
b
may, where a distribution agreement is in force between the specified competition organisers in relation to the same qualifying football season or seasons to which the order relates, provide for that agreement to have effect subject to provision contained in the order.
11
At the same time as making a distribution order, the IFR must give the two specified competition organisers a notice—
a
including a copy of the order,
b
giving reasons for the order,
c
explaining how the order applies the principles mentioned in subsection (8),
d
explaining how the order addresses the findings set out under section 61(3)(c), and
e
including information about the possible consequences under Part 8 of not complying with the order.
12
The IFR must, as soon as reasonably practicable after making a distribution order, publish the order or a summary of the order.

Duration and revocation of distribution orders
63
1
A distribution order comes into force at such time as the order may specify.
2
A distribution order ceases to have effect—
a
on such day as may be specified in the order, or
b
if revoked under subsection (3) or (4).
3
The IFR may revoke a distribution order if it considers that there are exceptional circumstances that make it appropriate to do so.
4
The IFR must revoke a distribution order where it is satisfied that the two specified competition organisers have, after the making of the order, entered into a distribution agreement relating to the same qualifying football season or seasons to which the distribution order relates.
5
Where the IFR revokes a distribution order, it must give a notice to that effect to the specified competition organisers.
6
The notice must include the reasons for the IFR’s decision.
7
The notice may include transitional, transitory or saving provision in relation to the revocation of the distribution order.