The Independent Football Regulator will have a new licensing system to protect clubs from financial ruin or bad owners after Morecambe FC came within days of closure
Rogue club owners could face prison under new powers for the Independent Football Regulator.
Government chiefs have sent out proposals for a tougher owners, directors and executives test as part of the Football Governance Act. It will give the regulator greater powers with the ultimate threat of criminal action – including prison sentences – for club owners who break the law.
The regulator said in a statement: “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.
READ MORE: Daniel Levy leaves Tottenham after 25 years at club in bombshell announcementREAD MORE: Ryan Reynolds given Wrexham reality check as Premier League claim made
“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.”
Fans, supporter groups and football bodies are being invited to take part in a consultation which runs until Monday, October 6. It is part of a drive to give fans a greater say while the IFR will have a new licensing system to protect clubs from financial ruin or bad owners.
Championship club Sheffield Wednesday have seen huge fan protests against owner Dejphon Chansiri. The club is under investigation by the EFL for financial issues, including late payments to Revenue and Customs as well as a failure to pay staff and players.
National League side Morecambe came within days of closure in July after being plunged into financial crisis under former owner Jason Whittingham.
The IFR added: “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.”