Sheffield Wednesday will hope to begin seriously preparing for life in League One as soon as possible.

The Owls have been in administration since October, and they were officially relegated from the Championship in February after a 2-1 defeat to fierce rivals Sheffield United.

But there is some light at the end of the tunnel, as David Storch’s Arise Capital firm has agreed to buy the club in March.

The Yorkshire club is still awaiting EFL approval before sealing the takeover, but a new era is on the way at Hillsborough.

Henrik Pedersen’s side has had a terrible season, winning only one of their 39 games and sitting on minus six points after incurring a total of 18 points in deduction penalties from the EFL.

Sheffield Wednesday is expected to face more restrictions when the takeover is completed, including a 15-point deduction and potential pay caps.

Sheffield Wednesday Contract Protections

It was previously reported that the EFL had proposed a £7 million wage ceiling for Sheffield Wednesday for next season due to Storch’s bid falling short of the level required to pay the club’s creditors at a rate of 25p per pound.

As part of the idea, the Owls might have been restricted to a maximum weekly wage of £7,000 for players.

However, The Star has stated that these fines would be lowered, adding that they were never viable in the first place because players currently earn far more than that.

And, despite concerns over the amount of some players’ pay, Sheffield Wednesday are seen to have some protection heading into League One next season.

It is expected that several players would receive automatic wage reductions ranging from 40 to 50 percent as a result of relegation.

This will allow Sheffield Wednesday to comply with any financial constraints imposed by the EFL while potentially leaving some room for expenditure in the transfer window.

It’s unclear whether the limits on paying fees for new players will be relaxed this summer, but free agents and loan signings should still be allowed with EFL approval.

Arise Capital is allegedly still in talks with the EFL to work out the specifics of any sports sanctions the club may face once the takeover is complete.

Wage reduction clauses may be very essential for Sheffield Wednesday.

Sheffield Wednesday’s overall salary bill is very low, but the club still has senior players who have earned Championship-level contracts, which might be costly to keep in the third division.

So the inclusion of wage reduction clauses as a result of relegation, while common among clubs, will be critical for the Owls.

Capology estimates that Ike Ugbo, Dominic Iorfa, and Nathaniel Chalobah each earn £20,000 each week.

Being able to cut some of their spending for life in the third tier will aid the new owners’ efforts to construct a competitive squad right immediately.