Football's new regulator is powerless to stop Sheffield Wednesday being docked 15 points next season, even if it is they who approve David Storch's bid to buy the club.

But chief executive Richard Monks did suggest they will take a more flexible approach to the owners and directors test Storch must pass if the matter is handed to them.

Storch was last week named as the new preferred bidder to buy the League One-bound club but there is widespread expectation his offer will not see unsecured creditors paid back 25p in the pound.

Under Football League rules, this would lead to a 15-point deduction. Despite Sheffield Wednesday Supporters Trust quoting the rules to argue this is discretionary, chief operating officer Nick Craig made clear last week it will be applied.

The Government set up an independent regulator to help protect the financial well-being of clubs. It will take over responsibility for deciding if prospective new owners are "fit and proper persons" to run a club from the Football League in May.

But when it comes to league rules, Monks told The Yorkshire Post: "That is simply a matter for the Football League, that's not in our remit."

Storch told the BBC last week he hopes to conclude a deal by May 1 to press on with plans for the summer transfer window.

A £41.5m legal settlement between Storch's AAR Corporation and the US Department of Justice and the Securities and Exchange Commission in 2024 after executives admitted bribing government officials in Nepal and South Africa will have to come into consideration, but Monks suggested his body may look at the matter differently.

PREFERRED BIDDER: David Storch is the latest businessman trying to complete a deal to buy Sheffield Wednesday (Image: Steve Ellis)

placeholder image — PREFERRED BIDDER: David Storch is the latest businessman trying to complete a deal to buy Sheffield Wednesday (Image: Steve Ellis)

"If it comes to it we will take a holistic assessment in May,” he said. “We will look at all those issues in the round. But I would say there is a difference between our regime and the regime of the league.

"Our regime isn't based on binary black-and-white criteria that you fail and you're automatically out. Our regime is based on an holistic assessment accounting for risk."

The regulator has been involved in discussions with would-be buyers to ease any handover.

"We've worked with the administrators over the last four or five months and they understand where the EFL's rules and regime ends and where our regime starts," said Monks.