Sheffield Wednesday took another step toward escaping administration earlier this week as a new preferred bidder was announced to take over the club.

David Storch was part in the negotiations when James Bord’s offer for the Owls was accepted in December.

However, the former poker player’s syndicate backed out of the buyout agreement in February, reopening the bidding process.

The American is leading a group that includes Tom Costin to buy the Yorkshire firm, which has been in administration since October.

Henrik Pedersen’s side has already been formally demoted from the Championship, capping off a turbulent year for the club.

Supporters will be hoping that the takeover is completed swiftly, as certification from the EFL is required, but there is one stumbling point that could cause delays.

The £41 million stumbling block to the Sheffield Wednesday takeover

The certification procedure for Bord’s proposal to buy Sheffield Wednesday was lengthy, and it is hoped that the Storch deal will be less time-consuming.

According to The Athletic, an issue could develop as a result of a $55 million (£41 million) settlement reached during David Storch’s tenure as CEO and then chairman of the board of directors at AAR Corp.

The airplane maintenance company paid £41 million to resolve investigations by the Department of Justice and the Securities Exchange Commission.

It was suspected that AAR Corp violated the Foreign Corrupt Practices Act while Bord was in charge of the corporation. The settlement came about after an executive from an AAR subsidiary acknowledged to bribing a government official in Nepal. An AAR agent pled guilty to bribing a South African government official between 2015 and 2020.

Storch was AAR Corp’s CEO until 2018, when he became chairman of the board of directors. This is expected to generate certain questions that will need to be addressed during the ratification process.

David Storch’s answer to the prospective £41 million takeover problem

A lawyer for Storch has responded to the potential threat the £41 million settlement poses to the Sheffield Wednesday takeover.

The 73-year-old must pass the Owners’ and Directors’ Test (OADT) as part of the EFL’s process; else, his takeover will be jeopardised.

Keir Gordon stated that the bidders are sure that there is no concern and that it would be rectified promptly with the EFL as part of their background checks.

He feels that the corporation satisfied the US authorities with the settlement and that the problem emerged as a result of a few bad actors, with the company self-reporting the behavior once it was discovered.

“Mr. Storch was chairman of AAR Corp when the company self-reported a potential wrongdoing by a rogue employee in 2019,” Gordon told The Athletic.

“The corporation worked with authorities to satisfactorily resolve the issue in 2024.

“The United States government was happy with the outcome and decided not to pursue AAR Corp.

“We are satisfied that this is not an issue in relation to the EFL’s OADT process but ultimately, as you are aware, it is for the EFL to determine this.”

Sheffield Wednesday faces a cash crunch in the coming months if a takeover is not completed.

It’s unclear how long it will take to reach a decision on Storch’s bid, but supporters will be hoping it happens soon.