Sheffield Wednesday look set to start next season in League One with a 15-point deficit as none of the bidders currently seeking to take over the club are prepared to pay outgoing owner Digifone Chansiri £15m.
Former Newcastle owner Mike Ashley and American investor David Storch are thought to be the frontrunners to take over Hillsborough, with several other potential buyers also believed to be behind the deal.
However, Sky Sports News reported that none of the interested parties were prepared to hand over the cash and pay a Thai businessman effectively half of the club’s total purchase price.
The club’s preferred bidder, James Bode, who withdrew his rights two weeks ago, said he was willing to pay Chansiri, which would avoid future points penalties.
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Rob Dorsett explains why the consortium withdrew its interest in buying Sheffield on Wednesday.
However, all current offers on the table on Wednesday are understood to be significantly less than the £48m the board agreed to pay. Ashley’s original bid was around £20 million, but there is no evidence the price has increased significantly in the intervening period.
Under EFL rules, anyone wishing to take over a club must pay all ‘football creditors’ in full and other creditors, such as Chansiri, a quarter of the outstanding amount. Violating these EFL policies will automatically trigger a 15 point deduction.
Mr Chansiri had loaned out more than £60m during his 11-year term on Wednesday.
Chansiri has loaned out more than £60m to Wednesday during his 11 years in charge, and as this money was not converted into share capital, he remains the club’s single biggest creditor.
This means Chansiri will have to pay £15m of the £60m owed if Wednesday’s new owners start next season without a points penalty.
None of the current bidders are prepared to pay around £8m to clean up the stadium, £6m in HMRC and other government debts and up to £3m in legal costs outstanding. All of this is on top of the agreed upon asking price.
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Highlights from Wednesday’s Sky Bet Championship match between Derby County and Sheffield.
The EFL is ready to act quickly once Wednesday administrator Begbie Traynor tentatively accepts a new offer.
Sky Sports News has revealed that all parties are hopeful that another preferred bidder could be named later this week, but as we have seen throughout this process, deadlines are not guaranteed.
