Last week, Lincoln City announced that Ron Fowler would take over the position of Chairman from Clive Nates as Liquid Investments, Inc look to buy majority stake in the club.
However, given the stance of both parties and a clear agreement in where the club needs to go, why hasn’t a sale already concluded?
The simple answer to that is due to EFL rules and a long process that is currently ongoing which limits what the club can say or do at this moment in time.
Despite that, they were able to issue a statement that read: “There will be a full and detailed update from Ron and Clive once we can provide it, which is expected within the next two weeks.”
The reason for this delay will most likely be down to the EFL conducting their ‘fit and proper test’ that prohibits a person who is subject to a Disqualifying Event from becoming a ‘Director’ for any Club.
It’s purpose is to protect the image and integrity of the league and its competitions, the well-being of the Clubs, and the interests of all stakeholders in those Clubs.
That process can take a varied length of time based on the number of investors involved, the size of the stake being purchased and the director’s previous sports history.
Therefore, given Ron Fowler’s past involvements as co-owner of Major League Baseball side San Diego Padres – that may help to speed the process up.
But given the restrictions in place while this process is being carried out, there is currently no information on when the process may be completed.
Credit: Chris Vaughan
That is because, the EFL imposes reporting requirements on Clubs and on persons who are, or propose to be Directors of Clubs.
That is to facilitate the league’s policing and enforcement of these restrictions.
For the avoidance of doubt, persons applying under this test will become subject to the League’s Regulations at the point of submission of the Declaration.
That basically means a proposed new director must follow all league rules from the point at which any clear interest is submitted to the club in question and therefore the football league.
It is in those league regulations and reporting requirements that things start to become a bit cloudy within the information publicly available, as very little is shared from outside the associated parties.
That may be where the Imps have deliberately timed the transition in order to have a structure in place by the summer, but not effect the current transfer window.
Clubs are quite often placed under a very temporary transfer embargo while undergoing a takeover.
And given the expectation of the side to complete more business before deadline day, any hindrance to this could cause major issues.
Given the timing of takeovers, these embargo’s often go under the radar because there is no need for them to be publicised as they often only last a few days or even a few hours.
Credit: Chris Vaughan
Therefore, given the current embargo of promotion rivals Cardiff City, due to a failure to submit their financial accounts on time, the Imps have seen a chance to capitalise in the market.
Ultimately, given the direction City are currently heading in and a clear agreement over the transition of ownership alongside how the club will be run, there seems to be no rush to complete the takeover in a manner that could jeopardise the Imps’ season given the promising direction under both the new and old ownership.
The transition has ended a very successful eight-year stint with Clive Nates as the club’s chairman.
In that time, the club went from seventh place in SkyBet League Two in their first season back in the football league.
They have since risen all the way through League One, having been promoted in his first season at the top to now sit second in the table, three points off first.