The EFL criteria investors must meet to buy Sunderland shares as Charlie Methven and Stewart Donald eye exit

While Donald and Methven are no longer on the board of directors at the Championship club, the pair still own a combined 39 per cent stake, despite being unpopular with supporters.

Kyril Louis-Dreyfus took a controlling 41 per cent stake of Sunderland in February 2021, while Juan Sartori retained 20 per cent.

Methven has previously said that he and Donald are prepared to sell their combined shares for £11.7 million (equal to a club valuation of £30 million).

But Louis-Dreyfus has distanced himself from the cryptocurrency group after the story broke on Tuesday evening with the news causing concern among fans.

Here, we take a look at the criteria for the owners’ and directors’ test with the investment deal said to be in the hands of the EFL:

WHAT IS THE EFL OWNERS’ AND DIRECTORS’ TEST?

The test is an assessment of the individual, or group, looking to take on the running of the football club.

It is designed to assess whether the potential owners can run the club in a suitable manner and whether they have the required funds in order to do so.

The EFL state that any “directors and individuals exercising ‘control’ over a club, as well as any shareholder with a 30% stake in a club (or greater)” have to undergo the test.

WHAT INFORMATION IS SUBMITTED AS PART OF THE EFL OWNERS’ AND DIRECTORS’ TEST?

Potential shareholders have to submit a variety of information to the EFL, with the league able to request any details they feel are necessary to ascertain whether they are able to take control of a club.

They may be also asked about their involvement in any other football club, should that become apparent.

HOW LONG DOES THE EFL OWNERS’ AND DIRECTORS’ TEST TAKE TO COMPLETE?

When a club intends to appoint a new director, or complete a takeover, they must inform the EFL at least ten working days before the director is anticipated to be appointed.

Within five working days, the EFL will respond stating whether or not they feel there are grounds on which to disqualify the potential director.

WHAT COULD LEAD TO A TAKEOVER BEING BLOCKED?

The EFL will disqualify potential directors - and in effect block a takeover - for a number of reasons.

These include: the individual has convictions that are not spent, they are involved in another football club, or they have been the subject of bankruptcy proceedings.

WHAT DOES THE EFL SAY ABOUT BANKRUPTCY?

The EFL state that any individual subject to insolvency matters can fail the test with the criteria set out below:

- an Individual voluntary arrangement including any fast track voluntary arrangement

- a bankruptcy order, interim bankruptcy restriction order or a bankruptcy restriction order

- a debt relief order, an administration order, or an enforcement restriction order

- a debt management scheme or debt repayment plan

- being a part of at least two football clubs that have each been subject to or suffered unconnected insolvency events

- one football club that has been subject to or suffered two unconnected insolvency events

For the full EFL owners’ and directors’ test click here.