Wigan Athletic: What is the fit and proper person’s test?

The Wigan Athletic Supporters Club have understandably written a letter to the EFL requesting an investigation into how the club has been placed into administration.

The events which led to administration can be best described as unusual and the fans have rightly questioned the EFL 'Owners and Directors Test'.

When a club in England falls into administration it is often queried how owners or directors passed the fit and proper person’s test.

What exactly is the fit and proper person’s test?

In 2004, the FA, English Premier League and English Football League, put in place regulations which would see owners and directors’ backgrounds be assessed when taking a controlling interest in a club.

All three have their own version of the fit and proper person’s test. The EFL’s is laid out on Appendix 3 of the league’s regulations and is called the Owners’ and Directors’ test.

What is the aim of the test?

The regulations state: “The intention behind this Appendix 3 is to protect the image and integrity of The League and its competitions, the well-being of the Clubs, and the interests of all of the stakeholders in those Clubs, by preventing anyone who is subject to a 'Disqualifying Condition' being involved in or influencing the management or administration of a Club.”

There are three key aspects of the test:

Preventing anyone who holds a criminal record from owning a club or being a director.

Making sure those in charge of clubs have the long-term interests of the business.

Ensuring those who own or direct a club do not lack integrity

How does a person fail the test?

The EFL have outlined a number of ‘Disqualifying conditions’ which would see a person fail the test. These could be:

If there is an association between two clubs. “Either directly or indirectly being involved in, or having the power to determine or influence, the management or administration of another Football League Club or Premier League Club”.

Being subject to a suspension or ban or other form of disqualification. This can be involvement in the administration of another sport by a sports governing body or by a professional body, such as The Law Society.

A failure to provide all relevant information or providing false or misleading information.

Having found to have breached betting rules on matches in England and Wales.

Having an unspent conviction for a dishonest act, corruption, perverting the course of justice, ticket touting, corruption or more.

Been or still on the Register of Sex Offenders

Been declare bankrupt

Been a relevant person at at least two football clubs that have been subject to or suffered unconnected insolvency events.

Been a relevant person at one football club that has suffered two unconnected insolvency events.

Found to be unlawful to act as a director of a UK-registered company

Has anyone failed the test?

It is believed that there are a number of individuals to have failed the test but very few have been revealed.

Stephen Vaughan failed in 2009 when he was Chester City owner as a result of VAT fraud as owner of Rugby League side Widnes Vikings.

Craig Whyte may be the most notable when he was owner of Rangers, while One Direction star Louis Tomlinson and his business partner failed on account of not having enough funding.

Former Leeds United Massimo Cellino also had a run in with the EFL which lasted 14 months. It was framed around criminal charges he faced around two yachts and a Land Rover he bought in the USA and brought to Italy allegedly evading import taxes.

Does it have its critics?

Sean Hamil is a Lecturer in Management at Birkbeck College, University of London, branded the test “ineffective”.

Meanwhile, Andy Holt, Accrington Stanley chairman, told the Totally Football Show: “I think it’s a disaster. It’s a bit like me breathalysing you tomorrow morning and expecting you not to be on the beer tomorrow night driving your car back from a party. It doesn’t predict any future behaviour and it doesn’t control any future behaviour. So, there’s absolutely no point in it.”