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Tuesday, 9th February 2010

What is the fit-and-proper-person test?

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Published Date:
10 July 2009
Now the period of due diligence is almost over, Pompey fans can breathe a little easier.
However, there is still one more hurdle to overcome if Sulaiman Al Fahim's Pompey takeover is finally be completed.
JORDAN CROSS reveals all there is to know about the Premier League's fit-and-proper-persons test.

What is the 'fit-and-proper-person test'?
In a nutshell the Premier League's 'fit-and-proper-person test' is a process the league undertakes to ensure a new club owner has the right credentials to complete a takeover.

It also involves directors and/or those who own more than 30 per cent of a club.

I'm doing the BUPA Great South Run and people say I'm a nice chap. Does that make me a fit and proper person?
Not if you've broken the law. There are a number of criteria laid down by the Premier League that a prospective new owner has to fulfil.
There are specific laws laid down by Premier League which would rule you out.

They are laid down in appendix 12 of their handbook and include everything from conspiracy to defraud to being subject to a football banning order. There are also a number of other issues to factor into the process.

A prospective owner is not allowed to be able to influence or be directly involved in 'another club or Football League club'.

Forget it, too, if you've been bankrupt or involved in a club which has had two or more unconnected cases of insolvency.

What's all this about the test being harder to pass?
Well, it is now a new all-singing, all-dancing test.

This largely was as a result of disgraced former Thai Prime Minister Thaksin Shinawatra taking over at Manchester City.

Shinawatra has been dogged by allegations of corruption and human-rights atrocities.

He was arrested in his country last year and now is in exile.

The fact such a controversial character passed the original test was the cause of some embarrassment for the league and brought about a tightening up of the process.

Shinawatra? Isn't he involved in the Pompey takeover?
No, not according to Al Fahim and his advisors. Al Fahim did originally indicate the Pompey buy-out would be funded by a group called Falcon Equity.

They, Al Fahim added, were made up of Asian and Middle Eastern investors.

It was later suggested under a blaze of media attention that Shinawatra was introduced to executive chairman Peter Storrie by Premier League chairman Dave Richards.

It was reported they were all involved in the deal along with Al Fahim and Shinawatra's dealmaker Pairoj Piempongsant.

Pompey were moved to deny Shinawatra had any involvement in the takeover and Al Fahim then insisted the move was solely funded by himself. The Premier League sought further assurances that was the case.

So what's different about the test now?
The main differences are the list of offences in appendix 12 of the Premier League's rulebook has been extended.

Also, under new rules, clubs must publicly disclose any investors who have a financial stake of more than 10 per cent in the club. Al Fahim is going to be the first man to go through the more stringent process, which was passed at last month's Premier League's meeting.

How long is the test going to take?
There is no 'one-size-fits-all' timescale for the test to work to.

A takeover could be undertaken by one person, a consortium or even a number of businesses. The length of time it takes to complete is variable as a result.

Al Fahim says he is completing the takeover on his own, so it should be quicker than it would be if there was a number of people to assess. Due diligence is now at a close and Pompey are confident the tests will take a week at the absolute maximum.

Do all businesses have to go through this test when someone buys them?
No, but Premier League clubs are subject to the same laws of the land as any business.

As a result Al Fahim has to comply with company law like anyone in the country.

Also, any person looking to use assets from overseas to purchase a company in this country must comply with the appropriate government law. That's the case with Al Fahim.

So the big one. Will Al Fahim pass the test?
That's the 64-million dollar question, and the facts suggest there is really nothing to stop Al Fahim sailing through with flying colours.

He fits all the criteria laid out by the Premier League, is a respected figure with impeccable credentials and is a mightily successful businessman.

There has been a heck of mud-slinging aimed in the 32-year-old's direction relating from everything to reported problems with his Hydra Properties business to him being incorrectly titled an honorific doctor.

The facts, however, suggest there is no reason for him not to be cleared to complete the deal.

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  • Last Updated: 10 July 2009 8:37 AM
  • Source: n/a
  • Location: Portsmouth
 
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1

pfcshaun,

10/07/2009 08:55:09
At last some good news
pup
2

phill2935,

10/07/2009 08:59:48
So if the DD is finished which looks like the case and the good Dr's credentials are as reported "impeccable" then the prem fit and proper rule should not be a barrier. The good Dr will know if he has any skeletons in the cupboard so this begs the 64 million dollar question, why has he not ploughed the money in straight away? If he knows that he WILL be the owner what is stopping him from appointing the manager and getting the mass recruitment on the go? This suggests that he may yet stumble, I hope not. pup
3

phill2935,

10/07/2009 09:03:09
Maybe I can answer that one myself having had time to think, maybe he cant put up any money untill he passes this test. He could announce who will be the new manager though I would of thought, I can understand the players not being named yet.
4

stuart,

Fareham 10/07/2009 09:13:51
i presume phil that he cant appoint a manager as until everything is done ie fit and proper persons and DD then the club is not his to appoint anyone. dunno y the doc doesnt tell sasha to appoint him though
5

One_Thomas_Thøgersen,

Berkhamsted 10/07/2009 09:13:57
phill2935 - Would you start redecorating a house you hadn't bought yet? Then why would Al Fahim sink any money into a club that Sacha still owns?
6

Blue Robo,

Portsmouth 10/07/2009 09:15:06
Anyone know if the new Scum owner had to do this test too?
7

Robbie B,

gosport 10/07/2009 09:17:54
Phil2935,thats what begs the question as the F.A gave the paper work fit and proper persons, days before the due dilligence started and was aloud to run concurrant with the D.D but at last theirs some light at the end of the tunle,just when the F.A give the thumbs up then we will all be happy but we should try and get a manager now Al has gota,i think thats what he was doing with the D.D getting the skeletons out of his closet has the D.D was going through,maybe a genius masterstroke,so the scumers that are aloud on this site,M J,sung a song for you BEAT IT!!,ruud van nistolroy,but id like to see a skillfull middfielder and if crouch dose go a big bustly strike with Ruud,excitting time,but ev everyone on he has had a rollercoaster ride,nearing the end,m
PLAY UP POMPEY,
bye bye scumers,
8

Robbie B,

gosport 10/07/2009 09:22:45
one tomas thorgersonas about decorating houses if you went to buy the house thats the ist thing you would do ,except getting the water gas and electric turned on first then put the furneture in,like Al should do,so what do you mean mate??,but this time we might get a new stadium......well ...maybe
9

Andi4asg,

10/07/2009 09:23:26
Southampton don't come under Premier League Rules
Strange that eh? PUP
10

bluebabe,

London 10/07/2009 09:30:00
Blue Rob, Yes he did have to pass a similar test, but not sure if the FL and PL tests are the same.
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