Sheffield Wednesday ‘face 15-point deduction next season’ as preferred bidder hits out at EFL

The EFL has made no comment on Storch’s statement (PA)

Sheffield Wednesday's preferred bidder has criticised the English Football League (EFL) after the club was informed it will begin next season in League One with a 15-point penalty.

Arise Capital Partners, the consortium led by David Storch, was named preferred bidder last month, following the collapse of a previous takeover for the administration-hit club.

“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,” Storch said in a lengthy statement posted on X.

“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 (Dejphon Chansiri) 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.”

Sheffield Wednesday will play in League One next season after Championship relegation (Danny Lawson/PA)

It has been reported that the American private equity company’s £20million bid will represent about 6p in the pound to the unsecured creditors – of which Chansiri would be the major beneficiary – when it is broken down.

This is well short of the 25p in the pound required to avoid a 15-point deduction next season.

But Storch – who pledged the consortium still intends to complete a takeover by May 1 – says the EFL must recognise the “unique” nature of the League One-bound Owls’ situation.

Storch said the facilities at Wednesday’s Hillsborough home are “inadequate” and “the full scale of the serious infrastructure challenges has become apparent” during the due diligence process.

“Sheffield Wednesday is worth saving. We believe in its supporters, its history, and its future,” said Storch.

“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.”

The EFL has made no comment on Storch’s statement, but it is understood the league is continuing to work with both the administrators and preferred bidders to find an agreeable conclusion to the matter.