Sheffield Wednesday have entered administration amidst their on-going financial crisis.
Sheffield Wednesday had endured a difficult year with wages paid late on several occasions amidst a £1m unpaid bill to HRMC, and fan protests at owner – Dejphon Chansiri, who has failed to “agree a sale to a credible future custodian” following discussions.
Julian Pitts, Kris Wigfield and Paul Stanley of Begbies Traynor have been jointly appointed as administrators of Sheffield Wednesday Football Club Limited, and Sheffield 3 Limited – which is the company overseeing Hillsborough Stadium.
The decision to go into administration has also seen EFL hand the Owls a 12-point deduction which has seem them stay bottom of the Championship, but now on -6 points.
Wigfield issued a public statement confirming that the joint administrators have taken over the running with immediate effect from Chansiri, in order “to protect the interests of creditors,” and ensure that the club can continue to play whilst they find a new owner.
“The joint administrators have taken over the running of the club with immediate effect to protect the interests of creditors, and to ensure Sheffield Wednesday can continue operating while we seek a new owner as swiftly as possible.
“Like many football clubs, it has been trading at a significant loss for several years, with those losses historically funded by the former owner Mr Chansiri.
“Due to increased financial pressure on the club, the owner has chosen to place the club and the stadium company into administration which will enable us to market the club and the stadium as a whole, which is great news for supporters of the club.”
Wigfield also addressed supporters who have refrained from buying tickets, retail and food at Hillsborough as he praised them for being “the backbone” of the club despite the financial issues.
“Supporters are the backbone of any football club. The money they spend at the gate and in the ground is vital. I’ve been a season ticket holder since 1984 and know first-hand the passion of this fanbase.
“Now, more than ever, we need fans back in the ground — buying tickets, merchandise, pies and pints. Every penny spent will go directly to supporting the day-to-day running of this club, not to the former owner or professional costs. This will help stabilise the club and support the loyal players and staff while we secure a suitable buyer.”
Stanley added reassurance for fans as he confirmed that the administrators are in contact with EFL to ensure that the Owls fulfil their scheduled fixtures as normal with minimal effect for everyone associated with the club.
“There should be no interruption to the fixture schedule and we are in close contact with the EFL to ensure that the effects of this administration on the employees, supporters, the community and the players are minimised as far as possible.
“Sheffield Wednesday is a massive, historic club with a loyal fan base in a city that lives and breathes football. If more fans return to Hillsborough, the club can cover its day-to-day costs and move towards a viable sale to a new ownership capable of restoring long-term stability.
“With the right ownership structure, we are confident that the club has a bright future and will meet all EFL regulatory obligations.”
Stanley proceeded to clarify that the “immediate priority” is in making sure that the Owls fulfil their home game against Oxford United on Saturday 25 October, before working with staff, supporters and the Sheffield community to ensure that the new owner is appropriate.
“In the coming weeks, we will work closely with the staff, the Supporters Trust and the wider community to ensure that the club is placed in the hands of a suitably-qualified and well-financed new owner.”
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