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Sheffield Wednesday will begin next season in League One with a 15-point penalty due to a £20 million bid from Arise Capital Partners falling short of the required payment to creditors. The preferred bidder, David Storch, is seeking recognition of the club's unique situation from the EFL.
The EFL has informed the preferred bidder for Sheffield Wednesday that the club will start next season in League One with a 15-point penalty.
Arise Capital Partners, a consortium led by David Storch, was named preferred bidder last month after a previous takeover of the administration-hit club fell through.
Storch said in a statement that the group wants the EFL to recognise the "unique" nature of the League One-bound club's situation.
However,BBC Sport understands that the American private equity company's £20m bid, when broken down, will represent about 6p in the pound to the unsecured creditors - of which former owner Dejphon Chansiri would be the major beneficiary.
This falls notably short of the 25p in the pound required to avoid a 15-point deduction next season.
"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," said Storch.
"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."
Storch said the facilities at the club's Hillsborough home are "inadequate" and require "significant and urgent" work.
Despite the ongoing difficulties, Storch reassured fans the group still intends to complete a takeover by 1 May.
"Sheffield Wednesday is worth saving. We believe in its supporters, its history, and its future," he said.
"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 is facing a 15-point penalty because the bid from Arise Capital Partners did not meet the required payment to unsecured creditors, falling short of the 25p in the pound threshold.
The preferred bidder for Sheffield Wednesday is Arise Capital Partners, led by David Storch.
The £20 million bid represents only about 6p in the pound to unsecured creditors, significantly less than the 25p needed to avoid a penalty, which primarily benefits former owner Dejphon Chansiri.

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