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Manchester Evening News
Manchester Evening News
Sport
Jack Flintham

Premier League Owners' and Directors' test explained amid Manchester United takeover process

Manchester United's takeover process is reportedly nearing its conclusion as Sheikh Jassim bin Hamad Al Thani and Sir Jim Ratcliffe battle it out for ownership of the club.

On Thursday, a report from Reuters suggested the Glazers were preparing to enter exclusivity talks with Sheikh Jassim, which would be a significant step towards securing the takeover. The same day, the Qatari banker's Nine Two Holdings Limited became a registered company in the UK, albeit this is not thought to be an indicator towards an imminent takeover decision.

Nonetheless, the combined pieces of news sent United's share price rocketing. While various journalists have since contacted sources close to the bid who claim there has been no firm progress, it would appear a takeover decision could be moving significantly closer.

Before either Sheikh Jassim or Ratcliffe can takeover, the prospective owners will first have to pass the Premier League's Owners' and Directors' test. MEN Sport has taken a look at what it is and what both men can expect.

ALSO READ: Glazers have another reason to give Ten Hag clarity

What is the test?

In brief, the Owners' and Directors' test, also known as the Fit and Proper Persons' test, is designed to stop certain individuals from taking over football clubs. 2The Premier League describes this as: "[Prospective owners who have] criminal convictions for a wide range of offences, a ban by a sporting or professional body, or breaches of certain key football regulations, such as match-fixing."

This test is reviewed on a seasonal basis to avoid owners or directors from abusing the clubs which they own.

How are the owners assessed?

Either Sheikh Jassim or Ratcliffe will be put under significant scrutiny by the Premier League with many different criteria being analysed for breaches of the standards set by the test. Criteria which could lead to failure, includes:

  • If they have been disqualified from being a director of a club
  • If they provide false information to the Premier League for the test
  • If they are directly or indirectly involved with another Premier League or EFL club
  • If the law prohibits them from being a director of a club
  • If they have a conviction imposed by a UK or 'competent foreign court' which led to a 12 month or more imprisonment and involved being; dishonest, violent, fraudulent, corrupt, perverting the course of justice or committing a hate crime.
  • If they have two or more convictions which are set out above, whether spent or not
  • If the Premier League deem they have committed an act outside the UK which would be deemed an offence here

The full list of criteria can be found in the Premier League Handbook here.

What are the changes which have been approved?

In March, the Premier League voted to make the following changes to their test which were brought in with immediate affect:

  • Decisions taken by the Premier League Board under the test will be subject to review by a new Independent Oversight Panel

  • The threshold for ‘control’ will be lowered to 25 per cent from 30 per cent

  • Club chief executives to be brought within scope of the test, as will a new concept of ‘relevant signatories’, being individuals responsible for signing a range of key regulatory documents

  • Owners’ and Directors’ Declaration form (Form 4) to be tailored to address individual and corporate directors

  • Several new disqualifying criteria have been added, including, individuals/companies being imposed with government sanctions and human rights abuses

  • Greater clarity and transparency over the due diligence to be conducted by the League on a takeover, with an agreed, published list of ‘acquisition materials’ that must be provided to the League to facilitate its due diligence

  • Additional annual due diligence to be undertaken by the Premier League on incumbent Directors to ensure ongoing compliance with the test

  • A range of increased transparency measures, including the requirement to publicly disclose individuals/companies disqualified under the test and an obligation on the League to create an annual report of compliance

Are owners likely to pass?

Most owners pass the test and are able to take on the ownership of a club. This should extend to United hopefuls Sheikh Jassim and Ratcliffe.

A Manchester Evening News special souvenir edition - Fergie's First - charts United's 1992/93 title-winning campaign and you can get your hands on one here

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