Swindon: Ownership legal battle and developments 'concerning' for English Football League
- Published
Swindon Town were relegated from League One last season after finishing 23rd in the table
Prospective Swindon Town owner Clem Morfuni has lodged an application to the English Football League to clear its owners' and directors' test.
The initial part of the test is unlikely to be an issue as Morfuni is already a club director.
However, the EFL will have to satisfy itself around the Australian's source and sufficiency of funding.
The EFL describes the ownership wrangle between Morfuni and current Town owner Lee Power as side as "concerning".
Australian businessman Morfuni is involved in a High Court legal battle with Power over the ownership of the League Two club.
Power has been ordered to sell the Wiltshire side to Morfuni's Axis company against his wishes.
Axis already owns 15% of Swindon's holding company, Swinton Reds, and with uncertainty around the club growing, wants to conclude a sale.
Both sides released statements in the past few days blaming the other for delays in doing this, amid players going unpaid, manager John McGreal quitting in June after only a month in charge and the threat of the local council taking the club to court to reclaim money outstanding for unpaid bills relating to its tenure at the County Ground.
Morfuni has the backing of the Swindon Town Supporters' Trust and is taking steps to ensure he can take over as quickly as possible, even though the EFL have limited powers to intervene.
"As part of the ongoing court case, it has been determined that through Axis Football Investments Limited, Clem Morfuni has the option to acquire the shareholding off current owner Lee Power and, as a consequence, control of the club," said the EFL in a statement.
"Mr Morfuni has now made an application to the EFL for prior approval in accordance with the EFL's regulations before determining whether to take up that option.
"The League continues to work with Mr Morfuni, considering his application, such that if Mr Morfuni does acquire ownership, he is in a position to meet his obligations required under current rules."
The EFL said it was "continuing to monitor the ongoing concerning developments" at Swindon and would take "the most appropriate action" if required.
However, the EFL said during their 2017-18 Club Owners' Conduct Review it was not given the power to step in and take control of such situations, although it could charge individuals.