Wigan Athletic went into administration on 1 July, four weeks after they were bought from one Hong Kong-based company.
The company is part-owned by poker player Stanley Choi, who is also chairman of the group selling the club.
Since it was announced that the club had entered administration, various rumours have surfaced – including one EFL chairman Rick Parry recounted to a fan – that Wigan had been the subject of a bet to get relegated. Once their 12-point penalty is applied they will drop to the bottom of the table.
Local MP Lisa Nandy and Greater Manchester Mayor Andy Burnham have written to the EFL to ask for an inquiry and now the Wigan Athletic Supporters Club is adding to the pressure.
“We are writing to the EFL to request that they make a formal statement acknowledging that a full investigation into the events surrounding Wigan Athletic being placed into administration is required before they consider whether the sanction placed on our football club may need to be reviewed,” said WASC.
“More importantly, we request that you then commit to a full review of the EFL ‘Owners and Directors Test’ to ensure that it is fit for purpose.
“The details of this case are subject to widespread sharing of facts and rumours alike and we are not here to go into the details.
“However, we are absolutely clear that our motives in writing this letter are to ensure that this is never allowed to happen again to another EFL club and to ensure the survival of Wigan Athletic Football Club.
The administrators are attempting to cover a £6m shortfall in income, which was supposed to arrive from Hong Kong to pay last month’s wages but never appeared.
Recent events at the club raises several questions:
- What due diligence was carried out on the new owners
- What proof of funds was provided bearing in mind the club changed hands in the middle of the coronavirus pandemic
- What was the process for allowing the previous change of owners and why did they sell the club on so quickly.
- Is the current EFL Owners and Directors test comprehensive enough.
Carrying out proper due diligence means that all key information is potentially known. This could be the profiling of individuals or companies, verifying assets, reviewing directorships, looking at links between all parties – all this on a worldwide basis.
The running of a football club can require huge resources and if money from the TV companies does not cover some expenses, and with no supporters in the grounds, income is restricted, it is vitally important that those running a club are properly investigated through comprehensive due diligence reporting prior to their appointment.
SIRS Europe is a long established investigation, tracing and discovery business providing due diligence and background profiling reporting on companies and individuals. It is one of the few in its sector to be ISO27001 certified, with connections throughout the UK and the world to assist its clients who include solicitors, insolvency practitioners, finance companies and the public sector.
Source: BBC Sport website