“Rogue owners” could be pushed out of English football through forced sales, as part of a new Owners and Directors Test, which represents the first action of the new independent football regulator to be officially announced.
Rules on ownership are set to be considerably tightened, with scrutiny also extended to senior executives, as the regulator will be afforded power to step in at problematic clubs.
That could ultimately demand an owner divest from a club, in a way that the Premier League, EFL and National League have not been able to do.
Proposed as the Owners, Directors and Senior Executives Test (ODSE), the plan is the first element of the new regime to be consulted on with fan groups and other stakeholders.
Although the independent football regulator has been implemented to primarily safeguard the financial health of the English game, a significant aggravating factor in this has been the issue of ownership, largely due to a previously laissez-faire attitude. The body will now have the authority to assess honesty, integrity and financial soundness of owners.
Incumbent owners, directors and senior executives will not need to apply, but the independent football regulator will have the power to take action if concerns arise about the running of a club.
This marks a considerable difference from current regulation, where the only step that authorities can take if they disqualify an owner is to expel the club. That essentially punishes the club as much as the owner, and can further contribute to the game’s financial situation. The regulator will instead be able to force a sale and appoint a trustee to run the club.
Other potential measures prior to that will be financial penalties and public censure. The body will also be able to undertake much greater due diligence and checks, including being able to consider domestic and international cases in applying its rules, and being able to check with banks where funds may be held, as well as with law enforcement agencies and other regulatory bodies.
There is a keenness to stress that powers will be used “proportionately”, and amid a collaborative approach with clubs that will seek to incentivise compliance.
Current consultations are also assessing how the regulator will use its powers to determine a prospective owner or director’s ability to finance their purchase of a club, as well as intent and strategy. These talks will also include proposals on the body’s information gathering, enforcement and sanctions powers, with the consultation eventually moving on to fan engagement, licensing and financial regulation.
The consultation process for the ODSE will run until Monday 6 October.