Reforms come after a series of high-profile crises in which clubs have been dragged to the brink by financial mismanagement
England’s new Independent Football Regulator (IFR) has outlined plans to tighten scrutiny of club owners and executives.
The body is seeking to entrench new powers that could see owners fined, forced to sell, or even face criminal charges for the most serious offences.
The proposals, published for consultation on Thursday, include a new test designed to assess the “honesty, integrity and financial soundness” of anyone running or seeking to run a professional club in England.
Unlike existing checks administered by the football leagues themselves, the IFR would have authority not only over prospective owners but also those already in position.
The reforms come after a series of recent high-profile crises in which clubs have been dragged to the brink by financial mismanagement.
Sheffield Wednesday remain under investigation by the English Football League for repeated payment delays, while Morecambe narrowly avoided collapse this summer following the departure of former owner Jason Whittingham.
Among the most severe sanctions the body is considering is imprisonment for individuals who deliberately obstruct it by destroying documents or providing false information.
Owners may also be fined up to 10 per cent of their club’s revenue or be required to divest from the club.
In a statement, the UK Department for Culture, Media and Sport said: “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 IFR would also have access to banking records and be able to consult law enforcement agencies as part of its due diligence process.
Officials stress the new rules are aimed at safeguarding the long-term stability of clubs rather than deterring legitimate investment.
Public consultation on the proposals runs until 6 October. The government has said it wants the regulator “to go live as soon as possible”, in an effort to prevent further financial turmoil in the game.
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