Sheffield Wednesday, a crisis club, could lose their EFL membership this season.
The Owls went into administration in October, following a terrible season that saw them relegated to League One in record time.
Wednesday are currently buried at the bottom of the Championship table, with a terrible score of -6.
This season, the historic club was docked a total of 18 points for entering administration and other financial violations.
And now, despite being close to a purchase, the Owls face an additional 15-point deduction for next season in the third division, with Arise Capital Partners confirmed as the new preferred bidder.
The problem is that Arise’s offer would fall short of the EFL’s demand to repay creditors 25p in the pound, putting Wednesday at a substantial disadvantage when they return to League One.
Their major creditor, Dejphon Chansiri, is said to have loaned the club £60 million over more than a decade as owner, and must repay £15 million of that if the Owls are to avoid a points deduction.
However, the EFL warned that if Wednesday fails to follow the Insolvency Policy’s standards, they could face even greater difficulties.
The EFL’s chief operating officer, Nick Craig, stated: “The League wants Sheffield Wednesday to remain a member of the EFL, but we must also follow the terms of the League’s Insolvency Policy.”
“The policy, which has been agreed upon with clubs and is intended to serve as advice for all clubs and insolvency practitioners, tries to balance the interests of not only Sheffield Wednesday, but also the other 71 clubs in the EFL.
“We remain open to continuing the conversations with the preferred bidders and the Administrators to try and find a solution that can see Sheffield Wednesday continue as a member of the League.”
Sheffield Wednesday’s takeover is currently under EFL examination.
According to an EFL statement issued on December 19, “On exit from Administration, the League will agree an appropriate business plan to enable the Club to move forwards.”
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