Leeds United rivals Sheffield Wednesday have officially gone into administration. The EFL confirmed that the club have been deducted 12 points after filing for administration on Friday morning.
The Owls were already stuck at the bottom of the Championship and now sit on minus six points with 11 games gone this season. Sheffield Wednesday had been struggling to pay players’ wages on time. The EFL officially charged them for multiple breaches of regulations for the failure to do so. Aside their off field problems, the Owls are statistically the worst performing team in the Championship.
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Sheffield Wednesday Credit: FBref
Since Dejphon Chansiri’s time as owner, the club has been struggling with financial issues. The HMRC was reportedly set to step in before they filed for administration. Ultimately, owing £1million in unpaid tax to the HMRC was the final straw, and pushed the club to take this action.
Kris Wigfield, joint administrator has revealed that the search is own for a new owner:
“The joint administrators have taken over the running of the club with immediate effect to protect the interests of creditors, and to ensure Sheffield Wednesday can continue operating while we seek a new owner as swiftly as possible.”
Dejphon Chansiri will be charged by an independent commission for failing to pay their first-team players on time in five of the last seven months.
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What happened when Leeds United went into administration?
Ken Bates Credit: Imago
Leeds United were also in the same situation back in 2007. The Whites entered administration after relegation from the Championship was all but confirmed. The club had debts of around £35million and required a cash injection of £10m to continue trading. HMRC has previously issued a winding-up order meaning the club would have gone into liquidation had they not settled the £5million bill in June.
Leeds historical rankings Credit: Transfermarkt
Leeds were resold to Ken Bates in 2006 and were handed a 15-point deduction for the next season.
What can Sheffield Wednesday learn from Leeds’ administration
The best the Owls can wish for is a new owner who shares the ambition of the fanbase. Leeds were lucky to get out of their hole under Ken Bates. Since then the club has gotten better with each ownership regime, and now, the 49ers look to make the West Yorkshire club a global giant worth £1billion in valuation.
Sheffield Wednesday historical rankings Credit: Transfermarkt
On pitch investment is also key; the reason why Leeds are even in the Premier League this year is because of that. So hopefully Sheffield Wednesday get under new ownership who wants to invest and make the club great again.
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