The independent football regulator (IFR) is set to introduce a new owners, directors and senior executive test aimed at keeping unsuitable custodians out of the sport. The proposed system, backed by law following the passing of the Football Governance Bill, includes the threat of imprisonment for serious offences such as wilful or reckless failure to provide accurate information, destroying evidence, or causing obstruction.
Consultation documents published on Thursday outline a range of hard-hitting features, including the power to force an owner to divest—something the EFL currently cannot do. The regulator will also be able to review existing owners if significant concerns arise, and conduct checks with banks to verify the source of funds.
The move has been expedited due to ongoing financial struggles at Sheffield Wednesday under Dejphon Chansiri and Morecambe's recent brush with extinction before being taken over. Criminal action would be a last resort, with fines at various levels depending on severity; the most serious, Level 3, could see fines of between eight and ten per cent of a club's relevant revenue.
Under the new system, operating licences could be suspended or revoked, and in extreme cases, the regulator could obtain a warrant to enter and inspect businesses to obtain withheld information. The consultation runs until October 6, with feedback sought from the public, fan groups, clubs, competition organisers, and related businesses.
The EFL is expected to adopt the IFR's finished product, while the Premier League will likely retain its own Owners and Directors Test to run alongside. The IFR says the new regime will 'assess the honesty, integrity and financial soundness of those who want to own or run a football club, ensuring they have the necessary skills and experience to do so'.
