Process of takeover a lengthy one
SUNDERLAND’S prospective takeover must be approved by the EFL before it can go ahead – and there is no timescale on that process.
The Black Cats announced on Sunday owner Ellis Short has agreed to sell the club to an international consortium headed by Eastleigh FC owner Stewart Donald.
Yet the deal still has one hurdle left to clear, EFL approval necessary before the change in ownership can go ahead.
The EFL will not comment on takeover deals during the process, a spokesman confirming yesterday: “EFL policy is not to comment on change of control matters.”
However, it is understood there is no set time limit with the circumstances, clubs, and individuals concerned, differing in each case.
It could be a matter of days, weeks, or – in the most complex cases – months.
Anyone involved in the takeover consortium will have to submit themselves to the EFL Owners’ and Directors’ Test, which considers matters including the source and sufficiency of their funding.
The test also prohibits any individual ‘directly or indirectly holding or acquiring any significant interest in a club while at the same time either directly or indirectly holding any interest in any class of shares or securities of another club.’
This is relevant because, while Donald confirmed on Sunday he has put Eastleigh up for sale, he owns that club.
The EFL will want to look at that situation and it is not yet clear whether he will need to sell the National League side or merely relinquish control before his deal for Sunderland can be given the go-ahead.
Other areas of the test include checking a prospective owner is not subject to a ban or disqualification by a member of a sports governing body, or by a professional body such as The Law Society, Bar Council, Institute of Chartered Accountants, that they have not breached football betting regulations, that they do not have any relevant unspent criminal convictions and that they satisfy a whole host of other requirements concerning financial and corporate matters.