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Swindon fans tell owner to ‘get out’ and ‘sell up’ as he gets punished by the EFL

Swindon Town fans once again tell their owner Clem Morfuni to ‘get out’ and ‘sell up’ after he gets punished by the EFL.

Morfuni has been fined £10,000 by the EFL for his failure to disclose the transfer of shares in the club, with the EFL’s independent disciplinary committee has imposing the charge for violating EFL regulations.

There had been concerns that Swindon would face a points deduction, however, it’s now been revealed there is no direct repercussions have been imposed on the club.

EFL STATEMENT:

An independent Disciplinary Commission (IDC) has fined Swindon Town owner Clemente Morfuni £10,000 for failing to declare a transfer of shares in the Club, as required by EFL Regulations.

Mr Morfuni had been charged on 7 December 2023 for failing to disclose to the Club’s management the transfer of a 17.1% shareholding to Mrs Hollie Kiely in September 2022.

This led to the Club breaching its requirements to disclose to the League details of any ‘Significant Interest’ shareholder with more than 10% of voting rights and failing to update the official club website for public record.

The Club and Mr. Morfuni admitted the charges, with the latter taking full responsibility for the breach.  

While the independent Disciplinary Commission acknowledged Swindon Town suffered an ‘inadvertent breach’ after Mr Morfuni’s administration error, the Club was issued with a reprimand and warning as to its future conduct.  

The IDC’s Decision and written reasons are available to view on EFL.com.

 

Swindon Town Football Club would like to issue the following statement: “An independent Disciplinary Commission (IDC) has fined Swindon Town owner Clemente Morfuni £10,000 for failing to declare a transfer of shares in the Club, as required by EFL Regulations.

“Details of the charges and the statement released by the EFL can be viewed by clicking here.

“The club will make no further comment at this time.”

SEE MORE: EFL confirm punishment handed to Swindon Town for breaching regulations

Here’s how Twitter users reacted as Swindon fans continue to tell owner to ‘get out’ and ‘sell up’ as he gets punished by the EFL…

@swinfan69: Get out of our club.

@RichardSTFC94: Time to sell the club!! We’re in big trouble

@adamfarmer98: Time to sell up Clem 👋🏻

@shadreNcs: Fucking hell that’s the next 2 years transfer budget

@Simonhockey45: Sell Up!

@stfcquestions: Temporarily ending my hiatus (hoodies coming soon) to say Fuck You to Clem Morfuni, who today was fined a total of two sensory rooms by the EFL for yet another charge. OK cool thanks bye. #STFC

@tommyb1508: That line at the end will be problematic when we eventually get charged for the standing and power case. And the further case of who actually owns the club because rumours suggest there’s more lurking behind the scenes. “Warned as to future conduct”

@stfcjosh: 10,000?? Thats our summer transfer budget gone, more statements than away wins, what a club.

@joteddyuk: What an owner! No doubt early bird season ticket sales will go into his pocket to cover the fine. One more reason why I won’t be renewing. Get in the bin and out of our club you absolute d***

@adesyko: More fines than away wins 😂😂😂

@JoshBarclay9: sell the club now its our only hope.

@Dazzapass: Naughty, Naughty……. That’s the least you need right now.

@bcks109: Club is a joke, being run by clowns. Some of the fan base are so stupid, they still think that he saved the club. We have had more EFL charges in less than 3 years of Morfoni than we did in 8 years of Power.

WRITTEN REASONS:

Introduction and Factual Background

This is an Award of the Disciplinary Commission dated 26 February 2024.

This matter relates to the transfer of shares in the ownership structure of the Club. Immediately prior to the events leading to this matter, the ownership structure of the Club was as follows:


a. The Club was wholly owned by Seebeck 87 Limited (Seebeck 87);

b. Seebeck 87 was wholly owned by Swinton Reds 20 Limited (Swinton Reds)

c. Swinton Reds was wholly owned by Axis Football Investment Limited (Axis);

d. Axis was wholly owned by the UBO, who was therefore considered to be the ultimate beneficial
owner of 100% of the shares in the Respondent.

On 15 August 2023, a confirmation statement was published on Companies House for Swinton Reds.

This confirmation statement provided that, on 30 September 2022, Axis transferred 1794 shares in Swinton Reds to Hollie Kiely (approximately 17.1%). This therefore meant that Mrs Kiely had acquired a Significant Interest in the Respondent, as defined in the EFL Regulations.

The EFL did not receive any notification of this change in shareholding, and the Club’s ownership statement on the website was not updated at the time of the transfer of shares.

Investigation and Charges

On 17 August 2023, the Club contacted the EFL regarding this matter, and a meeting between the
Respondent and the Complainant took place on 18 August 2023 to discuss the matter further. On 22 August 2023, the Club and UBO provided a further written explanation of the circumstances surrounding the share transfer and accepted that they may be in breach of EFL Regulations. Further particulars of such circumstances are set out below.

On 7 December 2023, the EFL brought charges against the Club and the UBO as follows:


a. The Club failed to give notice to the EFL of Mrs Kiely acquiring a Significant Interest in the Club, in
breach of Regulation 114.1 of the EFL Regulations for the 2022/23 Season (Charge 1);

b. The Club failed to update the identities of the ultimate owners of each Significant Interest in the
Club, published on its official Website, in breach of Regulation 114.5.4 of the EFL Regulations for
the 2022/23 Season (Charge 2); and

c. The UBO caused the Club to be in breach of Regulations 114.1 and 114.5.4, thereby acting in breach of Regulation 21.2.2 of the EFL Regulations for the 2022/23 Season (Charge 3).

Regulation 21.2 of the EFL Regulations for the 2022/23 Season provides:

21.2 “All Clubs must incorporate in any contracts of employment (or other contract for services) with their Officials and Players:

21.2.1 an undertaking to The League not to bring the League or any Club into disrepute;

21.2.2 an undertaking not to do anything or omit to do anything which will cause a Club to be in
breach of the Laws of the Game, the Football Association Rules, these Rules or the Articles
of Association; and

21.2.3 an acknowledgement that they are subject to the jurisdiction of The League and Football
Association.”

Regulation 114.1 of the EFL Regulations for the 2022/23 Season provides:

“114.1 A Club shall forthwith give notice to The League if any Person either directly or indirectly:

114.1.1 holds; or

114.1.2 acquires; or

114.1.3 having held or acquired, ceases to hold,
any Significant Interest in the Club.”

Regulation 114.5.4 of the EFL Regulations for the 2022/23 Season provides:

“114.5.4 Each Club shall publish the identities of the ultimate owner (Person, not Entity) of each
Significant Interest in the Club (as that term is defined at Rule 1.1 of Appendix 3). That information shall as a minimum be published on the Club’s official website on a page accessible directly from the home page of that official club website.”

The term ‘Significant Interest’ is defined in the EFL Regulations for the 2022/23 Season as:

“’Significant Interest’ means the holding and/or possession of the legal or beneficial interest in, and/or the ability to exercise the voting rights applicable to, shares or other securities in the Club which confer in aggregate on the holder(s) thereof ten (10) per cent or more of the total voting rights exercisable in respect of the shares of any class of shares of the Club. All or part of any such interest may be held directly or indirectly or by contract including, but not limited to, by way of membership of any Concert Party, and, for the purpose of determining whether any interest or interest(s) amounts to a ‘Significant Interest’:

(a) any rights or powers held by any Person shall be attributed to any Connected Person to that Person,
and

(a) any rights or powers held by an Associate or Nominee of any Person shall be attributed to that
Person.”

The Club and the UBO admitted the Charges and in accordance with Regulation 90.4.1 made submissions as to mitigation.

A Disciplinary Commission has been appointed, pursuant to Regulation 91, to determine the Charges.

Admission and mitigation

The Club and UBO’s submissions on mitigation included the following matters, which are not challenged by the EFL:

a. The circumstances leading to the charges arose because a historic long-term Club debt, which predated the UBO’s ownership, was sold and then accelerated by the new creditor, who made threats
of immediate legal action against the Club. As a result, the UBO sought to raise urgent finance to
satisfy the historic debt. The relevant shares were transferred as security for part of the finance that
was raised;

b. The failure to notify the EFL was an administrative error by the UBO, who also failed to notify the
executive management of the Club due to the fast moving, stressful period which preceded the
transfer of shares. This placed the Club in an inadvertent breach of the EFL Regulations;

c. The UBO did not seek to keep the transfer of shares secret, as evidenced by the filing of the Confirmation Statement at Companies House;

d. Upon learning of the transfer of shares, the Club and the UBO immediately and proactively worked
with the EFL to take matters forward, including (i) by making admissions at the earliest possible
stage and (ii) by rectifying the breaches immediately afterwards;

e. The UBO accepted full responsibility for the mistake leading to the charges and has apologised
both publicly to the Club’s supporters and to the EFL; and

f. The transfer of shares conveyed no sporting advantage on the Club, and none was alleged by the
EFL.

Sanctions Sought by the EFL

Having reviewed the Club’s and UBO’s submissions, the EFL sought the following proposed sanction in respect of the Charges:

a. In respect of the breaches covered by Charge 1 and Charge 2, due to the fact the breaches were inadvertent, the Club is sanctioned with a reprimand and warning as to its future conduct;

b. In respect of the breach covered by Charge 3, the UBO is sanctioned with a fine of £10,000, to be paid within 28 days of the date of this Award.

c. The Club and the UBO will, in addition to the sanctions detailed in paragraph 14 above, pay the EFL’s costs of £500.00 (plus any applicable VAT),to be paid within 28 days of the date of this Award;

d. The Club and the UBO will pay any applicable costs of the Disciplinary Commission, to be paid within 28 days of the date of this Award; and

e. This Award is to be published in this format on EFL.com. the “Proposed Sanctions”.

It is noted that the Club and the UBO have accepted the Proposed Sanctions.

Having considered the Charges and the written submissions provided by the Club and the UBO, the
Disciplinary Commission also agree that the Proposed Sanctions are suitable in the circumstances and as such Award the Proposed Sanctions.

This Award shall stand as a decision of the Disciplinary Commission pursuant to Regulation 93.

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