Football Club Ownership: When Regulation Meets Reality

The situation at Morecambe FC has brought the debate about football regulation back into the spotlight and with the regulator set to be introduced into English football later this year, opinion will only increase. But as Martin Samuel pointed out in The Times, some of the proposed fixes could end up doing more harm than good.

Where the Rules Fall Short
For many on the outside looking in, namely politicians, they often see regulation as the magic solution to bad ownership in football. The reality is not that simple. A new football regulator would check owners against clear rules — things like criminal convictions, bankruptcy, money laundering, and financial stability. What it wouldn’t do is block someone just because people don’t like their “reputation.”

When Jason Whittingham’s Bond Group Investments bought Morecambe in 2018, they passed the EFL’s owners’ and directors’ test. While some of his past companies had been shut down, which we now see as red flags, at the time they didn’t trigger any action under the rules.

The Licensing Problem
One big flaw is that licenses go to clubs, not the people running them. If Morecambe lost its licence because of ownership issues, the punishment would land on the club itself — and mid-season, that could be the end of the road. It’s hard to see how that would help anyone.

A Smarter Alternative
A better option might be to let leagues step in when a club can’t pay wages — taking temporary control and giving fans the first chance to buy. This way:

  • Action happens straight away
  • The club itself survives
  • Ownership can pass to people who care about the club
  • The competition stays fair

It’s a bit like how insolvency works now, but tailored for football.

The Reality Check
Smaller clubs don’t have a big pool of buyers to choose from. Sometimes, as with Steve Dale buying Bury for £1, the deal looks bad — but that’s just the market reality. Stricter rules could make it even harder to find anyone willing to take a club on.

The Way Forward
Good regulation should protect clubs without making it impossible to keep them alive. Heavy-handed licensing could end up killing the very teams it’s meant to save. To solve this, targeted measures are needed that keep clubs going while dealing with poor ownership.

The real test isn’t spotting bad owners after the damage is done — it’s building systems that stop clubs from getting into that position in the first place. And for that to work, the rules have to fit the way football actually operates.

What do you think? How do we protect clubs without making it harder for them to survive?

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