The English Football League (EFL) has issued updated guidance on club takeovers, emphasising that passing the owners' and directors' test (OADT) provides clearance to take up a role, not a broader endorsement of suitability. Nick Craig, the league's chief operating officer, said: 'It is clearance to take up the role, it is not wider approval. It’s not: “Yeah, we think they are going to be a decent owner.” Only time will tell whether owners are good or bad.'
The process, formally known as acquisition of control, involves three key parts: the OADT, source and sufficiency funding, and future financial information (FFI). Control is defined as at least a 25% shareholding, reduced from 30% following rule changes in June. Prospective purchasers must verify their identity and prove they can fund the purchase and ongoing operations.
Craig, who helped draft the original test in 2004, noted that this summer's updates extended disqualifying conditions to include expulsions in other sports and wider corporate insolvencies. A new rule also prevents clubs from announcing ownership changes before league ratification. 'We shouldn’t just be the end game, we have got to be intrinsically involved if we are to do the job effectively,' Craig said.
The collapse of Bury FC two years ago prompted regulatory changes. Previously, buyers could present information up to 10 days after acquiring a club. Craig said the test 'evolves and reacts to circumstances we have dealt with' and further integration with an independent football regulator is expected.
Each transaction varies in complexity. Mike Danson's takeover of Wigan in June was straightforward, while Birmingham City's takeover by Shelby Companies Limited required Hong Kong stock exchange approval. The 49ers Enterprises takeover of Leeds involved multiple investors, including golfers Jordan Spieth and Justin Thomas, requiring scrutiny of ultimate beneficial ownership.
