Sheffield Wednesday, which has been in administration since October of last year, is nearing an agreement with a new owner.

Previous owner Dejphon Chansiri mismanaged the Owls’ finances, particularly in the final 12 months of his rule, which included numerous late payments to both playing and non-playing staff.

Begbies Traynor was engaged to locate a replacement for the Thai businessman, and the Storch family was selected as the preferred bidder.

The American and Tim Costin have launched Arise, a group attempting to enter the world of football ownership with the Yorkshire club.

The Championship side, which has already been officially relegated to League One, will face a lengthy road back to competitiveness.

Sheffield Wednesday may face a wage spending cap and a 15-point deduction penalty for next season as part of the takeover process.

Dejphon Chansiri expected to benefit from Sheffield Wednesday takeover

The BBC reports that Chansiri will be one of the biggest beneficiaries of Sheffield Wednesday’s takeover, despite Arise’s lower-than-expected bid.

The £20 million offer will not be enough to pay the club’s unsecured creditors at a rate of 25p per pound, which would likely result in EFL fines.

However, it is anticipated that it will continue to pay creditors at a rate of 6p per pound, benefiting Chansiri.

According to reports, the previous Sheffield Wednesday owner stands to benefit the most when that sum is broken down.

The Championship side owes Chansiri £60 million in loans, which might have been worth £15 million if the Storch family’s offer matched the 25p on the pound threshold.

However, he might potentially earn up to £3.6 million if all creditors are paid 6p per pound and evenly split.

It is believed that Storch’s offer to buy Sheffield Wednesday will be ratified as early as May.

The Championship campaign will end on May 2, and there are concerns that the Owls would run out of money if a buyout is not finalized quickly.

Henrik Pedersen’s side has not won since September and is currently on the verge of finishing the season with only one home victory.

Sheffield Wednesday’s next game is at Stoke City on April 3rd, with a 3pm kickoff.

Dejphon Chansiri’s cost is justified in moving Sheffield Wednesday into a new era.

Given what he did to put the team in this situation, supporters will be upset if Chansiri receives even a penny from the sale.

However, at some time, it is better for all parties to move on and begin a new period under new owners, thus the expense may be justified simply to complete this takeover.

The sooner the Storch family can begin rebuilding the first-team squad and investing in the Owls’ infrastructure, the faster they will be able to return to a good competitive level.

Starting next season with a pay cap and a 15-point deduction penalty will be a significant setback, but it is preferable to going out of business entirely.