Both the EFL and the administrators currently running Sheffield Wednesday say “four or five” serious bidders have already expressed an interest in taking over Hillsborough, and they hope the club will be sold to new owners soon.
Becoming a manager is usually a very difficult and upsetting move for everyone involved with a football club.
But after years of financial problems under previous owner Digifone Chansiri, there is optimism among supporters and officials that the situation could finally give the club some much-needed fresh investment and a fresh start on Wednesday – despite the team sitting bottom of the Championship with -6 points and suffering a 12-point deduction.
Administrators plan to hold initial discussions with a number of stakeholders over the coming days, and have already revealed they have “four or five” potential new owners.
Along with identifying a suitable new buyer, the priority is to secure an incoming income stream to stabilize the club’s operations and enable Sheffield Wednesday to continue to pay its future bills, including player and staff wages.
We are also focused on selling as many tickets as possible for upcoming home games. More than 27,000 fans packed into Hillsborough for Saturday’s defeat to Oxford United, the day after the club took office.
Sky Sports News understands Wednesday could face further sanctions from the EFL for breaches of the rules, which have yet to be implemented.
These could result in further deductions on top of the existing 12 points that were automatically deducted when the club went into administration on Friday (depending on the views of a future independent panel commissioned to hear the case).
It is reported that it is hoped that any penalties handed down in the future will not deter potential buyers, as further penalty points will be imposed this season and will not carry over into future seasons.
Fans on Wednesday boycotted last week’s home game against Middlesbrough
The EFL is understood to be willing to bend its guidelines that clubs should not be sold within 21 days of announcing bankruptcy. These guidelines are in place to ensure that the sale of the club is not ‘pre-arranged’ and arrangements are in place to ensure that the deal is ready to execute as soon as the club is operational.
In the case of Sheffield Wednesday, it is believed that all parties recognize the benefits of a rapid transfer of governance in South Yorkshire and are keen to facilitate it.
The company that owns Hillsborough’s stadium is also controlled by Chansiri and is under the responsibility of Begbies Traynor, the same administrator as the football club. This is seen as another major reason for optimism that Sheffield Wednesday will not remain in power for long. EFL rules state that no club can remain insolvent for more than 18 months.
When Derby County went into administration in 2022, Pride Park was not included in that package as it was owned separately by Mel Morris. This means potential buyers will have to negotiate both with the football club’s management and with Morris at the stadium. No such problem exists on Wednesday.
Sheffield Wednesday administrator Chris Wigfield told the BBC: “As always, there are a number of interested parties who probably don’t meet the criteria, but we certainly believe there are already four or five interested parties out of the number of inquiries we’ve had so far that we think are genuine.”
“There are two criteria that the new owners have to meet basically to open a dialogue and have the opportunity to make an offer. Firstly, they have to show the administrators that they can keep the football club afloat. So they have to show that they have sufficient funds to fund the next few years. And secondly, they have to be satisfied that they pass the EFL fit and proper person test.”
The new independent football regulator is not directly involved in the incident involving Sheffield Wednesday. Although the new government department has been officially established, it is not yet fully operational. However, the regulator is in discussions with both the administrator and the EFL to develop an observation summary.
What happens next?
Use Chrome Browser for a more accessible video player
Sunny Rudravajara explains why Sheffield Wednesday’s regime is seen as a positive move
The club was immediately given a 12 point deduction for going into administration. Derby County were the last EFL club to enter the regime in 2021.
Management company Begbies Traynor Group was appointed administrators last week. Officials are said to have been discussing the possibility of the event for several weeks.
Mr Chansiri is the club’s largest creditor and will continue to be involved in the administration process.
Further penalties will be decided by an independent panel after failing to pay first-team players on time in five of the past seven months, with the possibility of further demerit points being imposed separately.
“Wednesday was one of the most bittersweet days in history as the administration was inaugurated.”
Use Chrome Browser for a more accessible video player
Sheffield Wednesday’s manager, Paul Stanley of Begbies Traynor, says the sale of the club could take several months.
A statement from the Sheffield Wednesday Supporters Trust after the government took office last week:
“Today is one of the most bittersweet days in our club’s proud 158-year history.
“The arrival of this administration was the inevitable result of years of financial mismanagement, lack of accountability and repeated failures with reliable buyers. The administration should not be praised. It did not have to end this way. However, we are very pleased that Digiphone Chansiri can leave the club for good.”
“The administration represents a necessary turning point. The club is now completely out of Chansiri’s hands and this could be the first step towards reclaiming our Wednesday, ending an era defined by bad decisions and deep divisions on and off the pitch. Once Hillsborough is restored to his ownership, Chansiri’s influence will finally be written into history. This will be an unfortunate chapter in Sheffield Wednesday’s long and storied history.
“We know this news brings some uncertainty and anxiety about what lies ahead, but there is good reason for sober optimism.
“The appointed administrators are experienced professionals, some of whom have been season ticket holders for Sheffield Wednesday for decades. The Trust has already begun dialogue with them and will play our full role in safeguarding the long-term viability and sustainable future of our club.”
“Now, more than ever, the residents of Wednesday must come together, be patient, be proud and focus on rebuilding a football club that is honest, sustainable and ambitious and truly represents Sheffield. We have shown over the past few months the power of being organized and coming together as one set of supporters. We have shown that a football club is nothing without its fans. It also shows the passion we can offer if the new owners can harness our support properly.”
“The Trust expects strong interest from a prospective buyer. However, even if a suitable sale does not materialize, supporters can be confident that we have worked over the past few months to develop a credible, fan-driven takeover offer. This will ensure that even in the worst-case scenario, the threat of liquidation is not an option.”
“The Trust will continue to keep supporters fully informed and outline practical steps they can all take to secure a brighter future for the club. Together we will rebuild stronger, fairer and forever proud of Wednesday.”
3 months of Wednesday nightmares
Sheffield Wednesday fans continued their protest against owner Digifone Chansiri during the Carabao Cup third round match against Grimsby.
June 3: The club and owner Digiphone Chansiri are charged with breaching EFL regulations regarding payment obligations.
June 18: EFL imposes three-window fee limit on late payments exceeding 30 days between July 1, 2024 and June 30, 2025.
June 26: Chansiri says in a statement on the club’s official website that he is willing to sell the club.
27 June: Another embargo placed on the club in relation to payments to HMRC.
June 30: Players and staff were not paid on time.
17 July: Josh Windass and Michael Smith leave the club by mutual consent.
29 July: Danny Rohr leaves his role as manager by mutual consent. Following a meeting with the local safety advisory group, Sheffield City Council issued a prohibition notice, forcing the club to close its 9,255-seater North Stand in Hillsborough.
Use Chrome Browser for a more accessible video player
Speaking earlier this month, Sky Sports News’ Rob Dorsett explained how Sheffield Wednesday are facing consequences for failing to meet deadlines to pay their senior players.
July 30: Players and staff were not paid on time.
July 31: Rohr’s assistant Henrik Pedersen signs a three-year contract to become the club’s new manager.
August 6: The EFL releases a statement explaining its position on the situation. “It is clear that the current owners need to deliver on their commitments to either fund the club to meet its obligations or sell it at fair market value to someone with deeper pockets, bringing an end to the current uncertainty and impasse.”
August 8: Transfer ban is lifted after outstanding payments are resolved, but fee restrictions remain in place.
August 10: The Owls lose 2-1 to Leicester in their Championship opener at the King Power Stadium.
August 13: North Stand ban notice lifted following “required professional safety assurances”.
September 4: On Wednesday, fans begin a protest against Chansiri in front of the Thai Embassy in London.
September 30th: Players and staff were not paid on time.
October 4: Wednesday lost 5-0 at home to Coventry. Kick-off was postponed after a group of fans stormed onto the Hillsborough pitch in protest against Chansiri.
October 14: Players and staff receive unpaid salaries starting in September.
16th October: News breaks that a liquidation claim of more than £1 million is imminent against HMRC.
October 22: Fans boycott home game against Middlesbrough on Wednesday. Official attendance numbers have not been announced.
October 24: Apply for administration on Wednesday and receive a 12 point deduction from the EFL.
