Rogue owners could be imprisoned for the most serious violations of the Football Governance Act under plans set out by the new Independent Football Regulator (IFR). Other mooted sanctions include fines of up to 10% of a club’s revenue and being forced to sell up.
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 in the English professional game. 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 the autumn.
Among the most eye-catching elements is the prospect that in the most serious breaches of July’s act an owner could face criminal consequences. In the gravest scenario those could include imprisonment. Specifically, the destruction or disposal of information or documents required by the IFR is deemed a criminal offence; so are the provision of misleading information and obstructing the IFR from exercising its rights to enter business premises. Pursuit of criminal sanctions would be viewed as a last resort for when civil sanctions, such as financial punishments, are considered inadequate.
The heaviest would lead to miscreants being 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.
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In extreme 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 relevant individuals’ funds are held. 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 looking 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.
