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Consent matters

Windfall

Windfall obligations only apply to Borrowers provided with higher-value loans.

Sport England have confirmed whether this does or does not apply to your loan in our introductory email about the Borrower Playbook, but if you remain unsure, please contact us at [email protected].

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  • What is a windfall?

    • 'Windfall' is a term applied by DCMS to cover a range of potential repayment events outlined in the loan agreement where your organisation receives funding that is not anticipated. It can be of any value and provides an unexpected benefit.
       
    • In your loan agreement, receipts can fall into four categories:
      • Disposal Proceeds – proceeds from selling of assets.
      • Financing Proceeds – funds raised, less existing indebtedness, which is refinanced.
      • Investment Proceeds – grants etc.
      • Insurance Proceeds – funds from claims, excluding third party, operational losses and asset replacement.
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  • When do I need to update Sport England?

    • You are required to inform Sport England as soon as you become aware of a potential windfall event. Failure to do so could lead to DCMS taking enforcement action – see the enforcement and default section for details.
    • To note, while you are obliged to make DCMS aware of these receipts, it may be that you will be permitted to retain some, if not all, of those proceeds. This will be subject to DCMS’s assessment and agreement.
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  • Why do I need to update Sport England?

    • A windfall may be treated as a mandatory repayment event under the terms of your loan agreement unless you are able to make a case for its retention. 

    • You are urged to consider the context of government funding as a last resort during Covid-19.

    • Should you be in receipt of material excess amounts relative to normal operating processes, then the government would welcome you considering if the taxpayer could be reimbursed on an accelerated basis given DCMS’s rights under the loan agreement. 

    • As noted in the repayment section, in making an early repayment you benefit from paying reduced interest over the life of their loan.

    • Settling the debt in its entirety would mean all reporting, consent and security obligations fall away.

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  • How do I let Sport England know?
    • If you are already speaking with a member of the Sport Survival Team on wider requirements, you can provide them with the windfall information directly.
    • Please note that you are required to ensure that details outlining the windfall are also included within your next monitoring and reporting submission. Note that it is not acceptable to only use your submission to identify the windfall activity.
    • If payment is required, you will be sent an invoice for the required amount alongside detail of the Sport England bank account. 

    OR

    • Email us at [email protected].
    • If you are already speaking with a member of the Sport Survival Team on wider matters, you can ask them to provide any payment details.  
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