The English Football League is to examine how it can protect clubs from inadequate owners before they are allowed to take over, following the expulsion of Bury after 125 years of membership.
The EFL’s acting chair, Debbie Jevans, giving evidence to the House of Commons digital, culture, media and sport committee’s inquiry into Bury’s collapse, acknowledged that Steve Dale bought Bury for £1 in December without providing the EFL in advance with proof he had the money to run the club.
Jevans said the EFL’s “governance review,” being conducted by Jonathan Taylor QC, must look at how owners can be rigorously checked before they take control.
Ian Lucas, the Wrexham MP, challenged Jevans about Dale’s takeover, asking “why you let him through the door” before Dale provided any financial information to the league. Jevans said EFL rules do not require buyers to provide information on “source and sufficiency of funding” before a takeover, but within 10 days afterwards.
The Premier League acting chief executive, Richard Masters, giving evidence alongside Jevans and the FA chairman, Greg Clarke, confirmed the top flight operates under the same 10-day rule.
“Do you agree with me that that’s a deficiency in the rules?” Lucas asked Jevans. “What I do agree is we must learn lessons from this,” she replied.
Taylor, of the law firm Bird and Bird, has been commissioned by the EFL to review its rules governing the “fit and proper person” test for owners and directors of clubs, and relating to their financial sustainability. He is expecting to complete his report by late spring in time for rules to be recommended and voted on at the EFL’s 2020 summer meeting.
Clarke told Lucas he had not been involved in the demise of Bury until four weeks ago, after they had been expelled, when he received a letter of complaint from Dale.
Lucas said he was “stunned” that the FA chairman had had no involvement with such “a massive football story”, relating to a club formed in 1885, until after its expulsion.
Clarke replied that while he feels “a moral responsibility”, the FA and English football works by allowing leagues to govern the rules of their own competitions.
“It is not the role of the FA to enforce those rules, and I’m not sure if I wanted to, I would have the power to enforce those rules,” he said.
The Football Supporters’ Federation chairman and vice-chairman, Malcolm Clarke and Tom Greatrex, also giving evidence, referred to a detailed submission they have made to the FA, calling for robustly strengthened rules.
The FSF argues that the FA should take a central role in clubs’ governance, operating a unit independent of club owners.
