Any Preston North End prospective new owner would face new regulatory test
Mr Amr Zedan has been linked with buying Preston North End
Any new Preston North End owner will need to pass the Independent Football Regulator’s new statutory test.
As of May 5, takeovers are under the remit of the IFR - which was established last July before the Football Governance Act was passed in November. Additional provisions have been switched on this month, including the IFR’s Owners, Directors and Senior Executives suitability regime.
Prospective investors and buyers must demonstrate ‘financial soundness and competence’, with the IFR able to act against unsuitable owners. As for the ODSE test, the IFR will work alongside the Serious Fraud Office, National Crime Agency and international law enforcement agencies.
Clubs, current owners, fans and industry stakeholders were consulted during development of the ODSE test - alongside ‘extensive club engagement’. It vows to ‘hold owners, directors and senior executives to higher standards than currently exist and apply to a larger pool of positions’.
“A new era for football governance is here,” said IRF CEO Richard Monks. “The test applies to every club across the top five tiers, and we have the tools to act quickly to help foster sustainable investment in the game. We will be able to gather information, investigate and demand action — including, in the most serious cases, the removal of an unsuitable owner.”
After having their background reviewed, prospective investors must provide proof of funds and detail the source of their wealth - before having their business plan and projected funding model examined.
The IFR’s three objectives are to protect and promote the financial soundness of regulated football clubs, protect and promote financial resilience of English football and safeguard the heritage of English football.
US-born Saudi businessman Amr Zedan has been strongly linked with buying PNE from the Hemmings family. Discussions with him were confirmed in late January and he attended the Lilywhites’ 1-1 draw with Queens Park Rangers, in April.
In January, chairman Ian Penrose said: “This is a complex process that requires many financial, legal and regulatory hurdles to be appropriately satisfied. The Board is being advised throughout this process by Rothschild & Co.
“Whilst such a transaction can take months to conclude, and there is no certainty that a successful outcome will be achieved, it is the Board’s intention to conclude these negotiations at the earliest opportunity.
“It is of utmost importance that any future owner of Preston North End is the right fit for the football club, in order to maximise the club’s potential and the ambitions of our fans, stakeholders and owners.”