The Independent Football Regulator (IFR) has set out new plans to raise the bar on owners and directors of football clubs, as it launches its proposed Owners, Directors and Senior Executives test.
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.
It will promote responsible ownership and protect the financial health of the 116 regulated football clubs, and is the first element of the new IFR regime to be consulted on.
The rules that will determine whether prospective owners, directors, and senior executives are fit and proper have been significantly tightened, while the criteria used to protect against illicit finance and criminal funding entering football have also been widened.
Incumbent owners, directors, and senior executives will not need to apply for approval. Good owners, running clubs effectively, will experience minimal impact. However, if the IFR has concerns about the suitability of an incumbent, it will be able to take action, the regulator said.
Stronger rules
Under the new rules, the IFR will be able to go further and undertake greater due diligence and checks compared to those currently run by competition organisers.
For example, the IFR will be able to consider domestic and international cases in applying its test and be able to check with banks where funds may be held, as well as with law enforcement agencies and other regulatory bodies.
At the same time, the IFR is also consulting on how it will use its powers to determine a prospective owner or director’s ability to finance their purchase of a club as well as their intent and strategy.
The new proposals are part of a series of key consultations being launched today, which also include proposals on the IFR’s Information Gathering, Enforcement and Sanctions powers. These powers will be essential to allowing the IFR to enforce its rules efficiently and uphold standards across the game.
The law gives the IFR the power to hold clubs and individuals to account as and when needed, from financial penalties, and public censure, to requiring an owner to divest from a club.
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 regulator said.
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