Rogue owners in England and Wales could be fined up to 10% of a club’s revenue and even required to sell up under plans set out by the new Independent Football Regulator (IFR).
The proposals for a new test for owners, directors and senior executives are critical to the regulator’s activities in a climate in which clubs such as Morecambe and Sheffield Wednesday have experienced existential peril. Their intention is to assess the “honesty, integrity and financial soundness” of those currently or potentially running a club. They have been published for public consultation until 6 October, with the intention that the new regime is imposed as soon as possible. The government wants to fast-track the regulator’s start so that its powers are activated in November.
Among the most eye-catching elements is the prospect that, in the most serious breaches of July’s Football Governance Act, an owner could be fined between 8% and 10% of their club’s revenue from the previous financial year. The ability to levy sanctions on individuals, as well as organisations, is regarded as a significant pillar of the test.
In highly serious cases, the IFR will have the power to require an owner to divest from a club. Those currently owning clubs will not be required to apply for assessment but have been warned that infringements will be viewed dimly. “Good owners, running clubs effectively, will experience minimal impact,” a statement from the Department for Culture, Media and Sport said. “However, if the IFR has concerns about the suitability of an incumbent, it will be able to take action.”
Under its beefed-up due diligence measures the IFR would also have access to banks in order to check where current or prospective owners’ funds are held if deemed necessary. It would also be able to consult law enforcement agencies and other regulatory bodies.
Those behind the plans emphasise that they have been designed to promote sound investment rather than discourage those seeking to put money into the game. “These powers will be used proportionately, in accordance with the IFR’s statutory duties, and with an understanding of the importance of owner investment and risk-taking in English football,” the statement said.
