Sheffield Wednesday’s prospective new owners have been informed by the EFL that the club will start next season with a 15-point deduction.
Arise Capital Partners, a consortium led by David Storch, had emerged as the preferred bidder to take over at Hillsborough.
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It had previously been reported that Wednesday were expected to start next season on -15 points in League One, after their relegation to Championship was confirmed in February.
This was said to be because Arise were unwilling to pay £15million to outgoing owner Dejphon Chansiri.
EFL rules state the club must pay 25 per cent to existing creditors, however, the bid from Storch’s consortium falls well short of this.
The American private equity company’s £20m offer, when broken down, will represent about 6p in the pound to the unsecured creditors but must be worth at least 25p to avoid a points deduction.
And US financier Storch has now confirmed that the EFL have informed him a 15-point penalty will be now in place as a result at the start of next season.
More misery for Wednesday
In a statement on X, Storch wrote: “We have now been informed that a 15-point penalty is set to be imposed at the start of next season.
“We fundamentally disagree with this decision.
“We also requested the opportunity for this matter to be reviewed through independent arbitration – going as far as offering to cover all associated legal costs ourselves in the interest of transparency and fairness. That request has been denied.
“What makes this situation particularly difficult is that it is entirely unique. A significant portion of the club’s debt sits with its former owner who has not agreed to write down or restructure that debt.
“We have made repeated attempts, through the administrators, to engage with Mr Chansiri in order to find a constructive resolution. Those requests have gone unanswered.”
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Storch also called the facilities at the club’s Hillsborough stadium ‘inadequate’ and require ‘significant and urgent’ work.
Storch: Takeover still on
Despite the ongoing difficulties, Storch reassured fans the group still intends to complete a takeover by May 1.
In the statement, he continued: “Sheffield Wednesday is worth saving. We believe in its supporters, its history, and its future.
“And, as we have shown to date, we remain prepared to invest the time, capital and energy required to rebuild this club properly – from its infrastructure to its footballing foundations.
“We are simply asking to be heard properly, for the circumstances to be fully considered, and for a decision that reflects the reality on the ground – not one that risks further harm to a club facing extraordinary challenges and that has already suffered substantial penalties.”
Sheffield Wednesday have been deducted 18 points in total by the EFL this season in a miserable campaign on and off the pitch.
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The first 12 were docked due to going into administration, while another six were taken off due to breaching the league’s financial rules.
This contributed to them suffered the earliest ever relegation from the Championship in February, while the hefty points deductions now leaves them on -4 points with four games left to play.
And next season, Wednesday face a fight to avoid relegation to the fourth tier for the first time in their 149-year history.
