October 24 – Sheffield Wednesday have formally entered administration as the Championship club’s long-running financial crisis under owner Dejphon Chansiri reaches breaking point.
Begbies Traynor have been appointed administrators of both Sheffield Wednesday Football Club Limited and Sheffield 3 Limited, the company that owns the club’s stadium.
The decision triggers an automatic 12-point deduction under EFL regulations, a penalty that will all but condemn Wednesday to relegation. The club currently sit bottom of the Championship with six points from 11 matches, meaning the deduction would leave them on -6 points and 13 points off safety.
The move follows months of turmoil at Hillsborough. The EFL charged Chansiri and the club in June with breaching financial regulations after repeated late payment of player wages and taxes. An embargo was later imposed relating to debts owed to HMRC, and players and staff have missed multiple paydays since the summer.
Chansiri, who bought the club in 2015 with ambitions of reaching the Premier League, said in June he was willing to sell, but no deal has materialised.
In a statement Kris Wigfield, joint administrator and managing partner at Begbies Traynor, based in Sheffield, said: “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.”
Protests by fans had intensified in recent weeks, including demonstrations at the Thai embassy in London and a boycott of Wednesday’s recent home match against Middlesbrough.
Average home attendances at Hillsborough has dropped by around 35% since last season – from more than 26,000 to just over 17,000 – with match day income also impacted by the fan boycott of ticketing, concessions and retail outlets.
“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,” said Wigfield.
“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.”
Paul Stanley, joint administrator, said there should be no interruption to the fixture schedule. “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 (founded in 1867) 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.”
That off-field instability has been mirrored on the pitch. Former head coach Danny Röhl left by mutual consent in July, while parts of Hillsborough were temporarily closed following safety concerns raised by the local council. Some star players, frustrated with not being paid, terminated their own contracts in the summer to find more reliable work elsewhere.
“Our immediate priority is to ensure that we are able to operate as normal for the next home fixture against Oxford United on Saturday,” said Stanley.
“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.”
Contact the writer of this story, Harry Ewing, at moc.l1761315106labto1761315106ofdlr1761315106owedi1761315106sni@g1761315106niwe.1761315106yrrah1761315106
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