Sheffield Wednesday have been advised that their future is in jeopardy, despite David Storch’s ongoing takeover attempts.

Storch has been designated the Owls’ preferred bidder and is currently undertaking the EFL’s Owners and Directors Test.

If his Wednesday takeover is not completed by the fifth month of the year, the American will face checks from the Independent Football Regulator by May.

Storch recently visited the Owls’ Championship game against Watford and impressed key figures at Hillsborough, including first-team manager Henrik Pedersen.

Sheffield Wednesday have warned that due to harsh EFL constraints, they may be forced to liquidate.

Wednesday have already been relegated to League One after receiving an 18-point deduction this season due to former owner Dejphon Chansiri’s wrongdoings.

The Owls are expected to lose an additional 15 points next season because Storch’s bid fell short of the amount required to pay the creditors 25p in the pound.

Another sanction that the EFL is set to impose on the Hillsborough club is that their individual player wages will be capped at £7k per week, increasing the risk of further relegation to League Two by impeding the South Yorkshire club’s ability to build a competitive third-tier squad.

Storch’s Arise group has hired sports lawyer Nick De Marco, who could challenge the EFL’s regulations.

In an interview with BBC Sport, James Silverwood, vice-chair of Sheffield Wednesday’s Supporters’ Trust, expressed concern over the club’s future.Sheffield Wednesday may not be investable under these harsh restrictions. And if nobody invests in Sheffield Wednesday, the club will be liquidated. “We are losing over 170 years of football heritage and history.”

Storch is still pursuing a buyout, although former preferred bidder James Bord’s proposal fell through, and Owls fans can only hope that this does not happen again.

For the time being, Sheffield Wednesday fans can hold out hope based on David Storch’s statements.

Silverwood is correct in stating that the worst-case scenario for Wednesday is liquidation, which occurred with former EFL Cubs Bury and Macclesfield.

Furthermore, investing in a team that is going to face severe constraints, which could result in a second relegation in as many seasons, is a substantially less appealing prospect than investing in a club that has not seen such difficulties.

However, Storch is clearly excited about leading the Owls to a healthier future for the time being, as evidenced by a recent post on X: “Back in the States now, reflecting on an incredible week in Sheffield.”

“On behalf of Michael (Storch), Tom (Costin) and myself, I want to thank the wonderful city of Sheffield, the local members of the community we met, the Supporters’ Trust and the Sheffield Wednesday fans for making us feel so incredibly welcome.”We are listening to and partnering with great Wednesdayites from all across the city to ensure that we provide the finest fan experience possible. While we continue to work hard to become stewards of this unique and historic club, please know that we will do everything we can to ensure a “Better Wednesday” and a brighter future for everyone affiliated with Sheffield Wednesday.”

Those statements indicate that Storch is not deterred by the Owls’ limits for the time being, which may be enough to prevent liquidation.

Furthermore, Sheffield Star writer and talkSPORT reporter Alan Biggs revealed via X that Wednesday’s administrators saw Mike Ashley as a backup plan in the takeover picture, implying that there is a viable alternative to Storch if necessary.