Sheffield Wednesday: What happens next as administrators called in?
With Sheffield Wednesday filing for administration on Friday, what happens next for the Owls?
The club – who are bottom of the Championship – have received a 12-point deduction from the EFL, with the governors of England’s second league saying this step “presents Sheffield Wednesday with the opportunity to move matters towards a successful sale and secure a future under new ownership”.
That future appears to be without Thai tuna tycoon Dejphon Chansiri. Begbies Traynor will run the administration process, while the incoming Independent Football Regulator said “it is unacceptable that fans of football clubs face this level of uncertainty”.
So with the club filing for administration, what happens next?
What happens next for Sheffield Wednesday
Gurpreet Sanghera, partner at media and entertainment law firm Simkins LLP, tells City PM: “Sheffield Wednesday’s future hangs in the balance as administrators face the huge task of finding a buyer and keeping the club afloat. But, with the true scale of its debts still unknown, tough decisions lie ahead and it remains to be seen what steps the administrators will take.
“The administrators now have eight weeks to set out their intentions – a crucial period that will determine whether the club can be rescued or whether the Owls face an even steeper decline.”
Adds Joshua Jeffries of Grosvenor Law: “The immediate effect of today’s filing is that there is a statutory moratorium in place preventing creditors and third parties from taking legal action including insolvency proceedings or enforcement against the companies or their assets without permission from the administrators or the Court.
“This is in the face of the club’s well documented financial issues. Administration is effectively a rescue procedure and allows the club to continue trading if viable and in the coming weeks the joint administrators will take control of the companies’ operations, assess assets and liabilities and consider the best next steps to protect the interest of creditors – this could include looking for a buyer for the club.”