The SFA have laid down a marker for the case involving Sevco and Mike Ashley by imposing a total registration ban on Livingston.
Neil Rankine’s involvement at Livingston and East Fife has resulted in a long running stand off that puts a question mark over the very future of the company that runs the football club.
SFA rules prevent directors from having a shareholding in another member club although the sanctions that can be imposed vary.
While Rankine has gone on record with his intention to sell his shareholding in Livingston, Sevco remain tied in and propped up by Mr Ashley.
As part of the unpublished Five Way Agreement that provided Sevco with SFA membership in 2012 it is believed that a clause was inserted preventing Mr Ashley from holding more than a 10% shareholding in the club and from holding a boardroom influence.
In October last year Mr Ashley called for an EGM to remove Graham Wallace, who used to work for Manchester City, and Norman Crichton from the blue room of dignity.
Before an EGM could be called Mr Wallace and Mr Crichton stepped down with Mr Ashley appointing Barry Leach and Deek Llambias to keep an eye on the shop.
Sevco have since benefited from a £3m loan followed by a £5m loan, partly used to repay the £3m loan, with Mr Ashley retaining the right to appoint two directors at any time.
Despite an apparent change of regime at Ibrox last month Mr Ashley’s £5m loan has still to be repaid, in addition the company is paying just £1,000 a week for five starlets on loan from Newcastle United- owned by Mr Ashley.
Announcing the verdict on Livingston yesterday the SFA stated: “1. Fine of £5000 imposed on Livingston FC.
“2. Livingston FC prevented from registering any player, either on loan or permanently, or extending the contract of any player currently registered with the club until such time as the club has resolved the ongoing breach of Disciplinary Rule 21.
“If the ongoing breach is not resolved it would be a matter for the Compliance Officer to consider raising further proceedings.”
The sanctions will be lifted when Rankine disposes of his stake in the club.
A similar punishment at Sevco would force the club to repay Mr Ashley’s £5m loan which would have a serious impact on the club’s summer warchest- failure to repay Mr Ashley would prevent the club from signing any player- or renewing the deals for the 12 stars out of contract at the end of the season.
Mr Ashley was fine £7,500 for breaching the Five Way Agreement, a date has still to be set for Sevco to explain their position to the SFA.