(Reuters) -Second-tier Championship side Sheffield Wednesday have filed for administration amid the club's mounting financial issues, a court filing on Friday showed. The English Football League (EFL)
Sheffield Wednesday Penalized 12 Points After Entering Administration
Sheffield Wednesday's Financial Troubles and Administration
By Rohith Nair
Impact of Point Deduction on the Club
(Reuters) -Sheffield Wednesday have been deducted 12 points after a court filing on Friday showed the second-tier side filed for administration amid mounting financial issues at one of England's oldest surviving football clubs.
Response from Club Ownership and Supporters
The English Football League had previously charged the Championship club in June with multiple breaches of regulations after they failed to pay players' wages on time.
Future Prospects for Sheffield Wednesday
The Yorkshire club have previously faced player registration embargoes and were docked six points during the 2020-21 season for breaching profit and sustainability rules.
"The EFL can confirm that it has now received formal notice that Dejphon Chansiri, the director of Sheffield Wednesday, has taken the necessary steps to appoint administrators to both the club and also the company which owns Hillsborough," it said in a statement.
AUTOMATIC DEDUCTION
"Whilst this development results in the automatic deduction of 12 points... it also presents Sheffield Wednesday with the opportunity to move matters towards a successful sale and secure future under new ownership," the EFL added.
The club said Julian Pitts, Kris Wigfield and Paul Stanley of Begbies Traynor, a company that specialises in corporate restructuring, have been appointed joint administrators of Wednesday and the company that owns Hillsborough.
"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," Wigfield said.
"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."
Having finished 12th last season, Wednesday were rock bottom of the standings this term with six points and one win in 11 games.
But with Wednesday entering administration, the team were automatically docked 12 points to plunge them deeper into the relegation mire. They now sit on -6 points, 15 points from the safety zone.
The same punishment was applied to Derby County in 2021 and resulted in their relegation.
OWNER CHANSIRI CHARGED WITH EFL BREACHES
The EFL in June also charged Chansiri with causing the club to be in breach of EFL regulations despite his commitment to fund their cash requirements.
Thai businessman Chansiri, who took over Wednesday in 2015, acknowledged the charges at the time and apologised to everyone connected with the club.
"Situations like this are exactly why this Government set up the new Independent Football Regulator," Culture Secretary Lisa Nandy said in a statement.
"Owners should be good custodians who act with their club's best interests in mind and clearly, in this instance, that has not been the case.
"We are working quickly to give the Regulator the powers it needs so it can better secure the future of football clubs and ensure they remain at the heart of their communities."
David Kogan, the new chair of the Independent Football Regulator, had said earlier this month that club owners deemed unsuitable could be forced to sell their teams as a last resort.
In June, Chansiri said he was willing to sell the Yorkshire club. At the end of the month, British media reported the players and staff had again not been paid on time.
The following month, senior players like Josh Windass and Michael Smith left by mutual consent, as did German manager Danny Roehl, who was this week hired by Scottish side Rangers.
'BITTERSWEET DAY' IN 158-YEAR HISTORY
Sheffield Wednesday Supporters' Trust said it marked "one of the most bittersweet days in our club's proud 158-year history" as the club entered administration, but they also described it as a "necessary turning point" to remove Chansiri as the owner.
"Entering administration was the inevitable outcome of years of financial mismanagement, a lack of accountability and repeated failures to engage credible buyers," it said.
"Administration is not something to be celebrated. It needn't have ended this way. But we are overjoyed to have Dejphon Chansiri out of our club for good."
Prior to the start of the new season in August, the EFL said Chansiri must either continue funding the club to meet its obligations or proceed with selling it to a financially capable buyer at fair market value.
The EFL's Club Financial Reporting Unit (CFRU) was also working closely with the club to manage cash flow and explore ways to ensure fixtures can be fulfilled, including reviewing the playing squad within existing financial restrictions.
Wednesday fans also boycotted their 1-0 home loss against Middlesbrough earlier this week to protest against the club's ownership. They next host Oxford United on Saturday.
(Reporting by Rohith Nair and Sam Tobin, additional reporting by William James; Editing by Toby Davis and Ken Ferris)
