Part 6

Distribution of revenue

Resolution process

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.