Mike Ashley, the former owner of Newcastle United, is one of the parties interested in acquiring Sheffield Wednesday and is currently contemplating the next steps to finalize the purchase.
However, that chapter appears to be behind the Yorkshire team, after the club was placed into administration this week, giving administrators the responsibility to find a solution for creditors, whether through new owners or liquidation.
Fans are returning to Hillsborough Stadium and the club shop after a period of absence to protest Chansiri, with the hope of avoiding the latter. Fortunately, there are some encouraging clues.
Mike Ashley is about to plunge his head into the ring for Sheffield Wednesday.
According to the Daily Mail, former Magpies owner Ashley is one of those considering an offer for the club and is reportedly ‘weighing next steps’ to secure a takeover.
He was a contentious figure at St James’ Park, with his proclivity for running a tight financial ship being seen as a lack of ambition for a club that, rightfully, considers itself one of England’s largest.
However, financial restriction may be the order of the day at Hillsborough, as Chansiri’s ownership has left practically everyone associated with the club owing money in some form, preventing the Owls from investing much in new players.
Interested parties, such as Ashley, will be required to provide proof of funds before being invited to look into the club’s financial situation, which should be no problem for the 61-year-old, who sold Newcastle for £300 million in 2021 and was estimated to be worth £3.12 billion earlier this year, according to the Daily Mail.
There’s no shortage of Sheffield Wednesday bidders.
According to a BBC report, Ashley’s interest is not unusual.
Joint administrator Kris Wigfield, who is leading the search for new ownership to replace Chansiri, revealed that “four or five” possible offers had already been lined up, with Ashley most likely one of them.
“As always, you get a lot of interested parties that probably aren’t going to meet the criteria,” Wigfield told me. “However, based on the numerous inquiries we’ve received, we believe there are already four or five viable possibilities.
“There are two criteria that new owners basically need to satisfy to then open dialogue and there to be an opportunity where they can make an offer.”
These two requirements include establishing their capacity to keep the club sustainable and passing the EFL’s fit and proper persons exam.
It is unknown who the other realistic interested parties are, but Ashley, who has been involved in top-level football for more than a decade, should have the experience to overcome those difficulties.
The financial status of Sheffield Wednesday
Ashley, or anyone else interested in owning Wednesday, has a lot of work ahead of them, first putting in a winning bid and then dealing with the club’s myriad issues.
The first of these concerns will be overdue debts, of which Chansiri is awkwardly included.
According to Daily Mail journalist Mike Keegan, kit suppliers Macron and HMRC are still waiting for payment, with a £1 million deficit being the final straw that triggered the administration.
There is also an estimated £200,000 owed to the EFL, with £800,000 in wages due this week.
That’s before we get into the sports situation, with a transfer embargo in place until 2027 and the administration imposing a 12-point loss, putting them on -6, implying they’ll need to close a 16-point gap on Blackburn Rovers to have any hope of survival.
Realistically, relegation to League One is unavoidable, thus any potential owner must consider the limited revenue opportunities that may arise.
Nonetheless, Ashley is an expert in distressed assets, and while he has few fans in Newcastle, he may become a hero in Sheffield if he can stabilize the Owls.
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