Sporting Leases
Rights to New Lease
There is no general right to acquire the freehold or reversionary interest in land, which is not ancillary to buildings. There are special rights for sports clubs to obtain a sporting lease. This is a further lease to commence on the termination of its lease.
The sports club or organisation must carry out an outdoor sport, game or recreation. The conditions are as follows:
• the land is held for the purpose of carrying on the sport under a lease for a term of not less than twenty-one years,
• the land has been continuously occupied by the sports club for that purpose for the period of not less than twenty-one years immediately preceding the date of the application for a sporting lease, or
• the land has been continuously in possession of the sports club for that purpose for the period of not less than twenty-one years immediately preceding the date of the application for a sporting lease.
Where land which complies with the qualifying conditions is used both for the purpose of carrying on the sport and for some other purpose, the sports club shall not be entitled to obtain a lease of that land unless the court is satisfied that the land is primarily used for the purposes of the sport.
The terms of a sporting lease are fixed by the Circuit Court default of agreement. The rent is a fair rent for the lease of the property for the purpose of carrying out the sporting activity. This need not be market rent.
Money Spent
The sports club has spent money—
• on erecting permanent buildings or structures on the land which are used in connection with the land for that purpose,
• on reconstructing, altering, renovating or adapting any permanent buildings or structures on the land which are so used so as to render them more suitable for that purpose, or
• on developing, improving or adapting the land so as to render it more suitable for that purpose, and
The total amount so spent was not less than the greater of the following, namely, one thousand pounds or fifteen times the average yearly amount of any rent or other sum paid or payable in respect of the land in the five years immediately preceding the date of the application for a sporting lease, disregarding any penal rent or other sums payable for any breach of a covenant, condition or agreement and any exceptional rent or sum in respect of a specified period not exceeding five years.
Any money spent on the maintenance of buildings, structures or land, or on the erection, reconstruction, alteration, renovation or adaptation of buildings or structures, or the development, improvement or adaptation of land, in contravention of any covenant, condition or agreement, is disregarded for qualification purposes.
Lease of Additional Land
Under certain conditions, the club may obtain a lease for adjoining land used with the principal land which would not otherwise qualify to meet certain conditions.Where qualifying land is held by a sports club in conjunction with other lands primarily used for the same purpose, that other land does not comply with those conditions, and that other land—
• is held under a lease for a term of not less than twelve years,
• has been continuously occupied by the sports club for a period of not less than twelve years, or
• has been continuously in the possession of the sports club for a period of not less than twelve years,
the sports club shall be entitled to obtain an additional sporting lease of that other land if the area of the other land is not more than one-fourth of the total area of the qualifying land and the other land.
If the qualifying land ceases to be primarily used for the purpose of carrying on the sport, the lessor of the additional sporting lease shall be entitled to terminate the lease on giving three months’ notice to the lessee.
Application to obtain Sporting Lease.
A sports club may apply to its immediate lessor to obtain a sporting lease of the land—
• not earlier than fifteen years before the expiration of the lease, and
• not later than the expiration of the lease or the expiration of three months from the service on the club by its immediate lessor or any superior lessor of notice of the expiration of the lease, whichever is the later.
The notice shall be valid only if served not earlier than three months before the expiration of the lease. Where an application is made for a sporting lease before the expiration of the lease under which the applicant holds, the sporting lease, where granted, shall commence on the expiration of the previous lease or on such other date as may be agreed upon between the parties.
Where an application is made for a sporting lease after the expiration of the previous lease, the sporting lease, where granted, shall commence on such date as may be agreed upon between the parties or, in default of agreement, on the date of the application.
A sports club which holds land otherwise than under a lease and which is entitled to obtain a sporting lease may apply at any time to the landlord or other person from whom it holds the land for a sporting lease of the land and the sporting lease, where granted, shall commence on such date as may be agreed between the parties or, in default of agreement, on the date of the application.
Restrictions on Rights
A sports club shall not be entitled to a sporting lease under this Act of the land or any part of the land in respect of which that lease is sought where the immediate lessor, any superior lessor, the landlord or other person who is a necessary party to the granting of the lease satisfies the court—
that he holds the land for a freehold estate or has an interest in reversion of not less than fifteen years, and that he requires vacant possession of the land for the purpose of carrying out a scheme of development of property which includes the land and that he has obtained planning permission for that scheme of development, and ) that it is reasonable that a sporting lease should be refused.
The provisions for compensation for disturbance apply to a case in which a sports club would, but for the above exception, be entitled to a sporting lease.
Covenants under Sporting Lease.
A sporting lease is to contain such covenants and conditions as may be agreed upon between the parties or, in default of agreement, as may be determined by the court. If the court fixes the covenants and conditions of the sporting lease, the lessee is be made liable to pay all rates for the land and to insure against fire and keep the premises in repair.
Where a sports club is entitled to a sporting lease under this Act and the terms of that lease are fixed by the court, the sporting lease shall contain the following conditions:
that the amount of the rent shall, on the application of the lessor to the court, be subject to a review at any time after the expiration of twenty-four years of the term granted by the sporting lease and to a further review at any time after the expiration of twenty-five years from the first or any subsequent review, and
that, if the property demised by the sporting lease is not used for or in connection with some outdoor sport, game or recreation, the lessor shall be entitled to terminate the lease on giving three months’ notice to the lessee.
Rent under Sporting Lease
Where the rent under a sporting lease is to be determined by the court, the court shall fix a fair rent for the grant of a lease of the property for the purpose of carrying on the sport. In fixing the rent the court shall have regard to the general intention of the Act in relation to sports clubs which is the advancement of outdoor sports, games and recreations and the preservation of open spaces for the common good.
Without prejudice to such other considerations as it considers relevant, may take into account the rent or other sum previously paid for the property by the sports club and any covenants and conditions under which it was so paid, to the rent paid by other sports clubs of the same kind in the same or a comparable locality, to the contribution made by the sports club to the enhancement of the property, and to the price paid by any person who is a necessary party to the granting.
Rent Review
Where the rent under a sporting lease is fixed by the court the lessor or the lessee shall be entitled to have the rent reviewed. The notice may be served ever where the rent has not previously been reviewed—not earlier than one month before the fifth anniversary of the date on which the rent under the lease was fixed, and where the rent has previously been reviewed—not earlier than the fifth anniversary of the date of service of the notice for the preceding review.
On a review of the rent by the court, the rent shall be fixed in accordance with the relevant criteria for the original grant by reference to the date of service of the notice on which the application to the court is based.