Dear Mr Boocock
Thank you for your further communication.
It help to clarify The Football League’s role in relation to football
clubs.
The vast majority of football clubs (and all Football League clubs) are
companies incorporated under English Law. The Football League has no
jurisdiction over those companies (or their owners) save where it
relates to the participation in our competitions.
Put simply, provided the owner operates within the law of the land
he/she is free to operate the business as he/she sees fit. If he/she
operates outside the law of the land then that is a matter for the legal
authorities of the country in question. The owner is free to use the
assets of that business as he/she sees fit, provided any actions are legal.
What The League provides is a national membership organisation and
administers competitions within which the member clubs participate and
it is these Clubs that make up the ‘membership’ of The League. They
vote in Rules and Regulations which The League then administers.
We do not “run” the member clubs. That is done by the owners and
directors of those member clubs. For example, we have no legal
jurisdiction to dictate who can or cannot own a business, but The League
does have the ability to determine whether that company should be able
to participate in our competitions.
We also have rules and regulation in relation to membership and
participation in our competitions with relevance to directors. In
particular the Fit and Proper Person Test disqualifies people from
operating as directors of a club if they fall into any of the following
categories:
o Anyone subject to a ban from a Sports Governing Body
relating to the administration of that sport.
o Anyone with an unspent conviction relating to fraud or
dishonesty.
o Anyone that is disqualified from acting as a director of a
UK registered company.
o Anyone currently subject to a Bankruptcy Order.
o Anyone who has been a Director of a club that has been in
administration twice during a five-year period or a Director
of two different clubs that have each gone into
administration in a five-year period.
The Fit and Proper Persons Test can only operate within the constraints
of the law of the land and cannot be used to cover any grievance against
an owner or director of a club. Its relevance is limited to legal issues.
Provided League Rules and Regulations are observed that private company
is entitled to be a League member and participate in our competitions.
When a private company suffers an insolvency event or encounters
financial problems it falls under the remit of the insolvency law that
operates in this country. The League is there to offer advice in
relation to our policies and regulations. We are not there to “bail
clubs out” or take over the running of the clubs. That is a matter for
the owners or, should they be appointed by the court, the
administrators. The League is a not-for-profit organisation that
generates revenue and distributes it to the member clubs.
When a club is looking to exit administration or administrative
receivership and move into the hands of new owners The League has a
degree of control in terms of assuring the new owners can support the
club going forward (The League does not have the same control when a
private sale takes place as it has no legislative control over a private
business in this regard).
There is nothing further that we can add.
Patricia
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