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Owls: MP Blunkett hits out at winding-up order
FORMER Home Secretary David Blunkett today slammed a decision to issue Sheffield Wednesday with a winding-up petition over outstanding debts as "deeply unhelpful".
ormer Home Secretary David Blunkett today slammed a decision to issue Sheffield Wednesday with a winding-up petition over outstanding debts as "deeply unhelpful".
The MP for Sheffield Brightside and Hillsborough said he would be in touch with the club "to offer every possible assistance".
The action by Her Majesty's Revenue and Customs – HMRC – relates to an outstanding PAYE balance of 550,000 with the petition due to be heard in the High Court on August 11.
But Wednesday have sought to reassure their fans that the club is "not about to be wound up, nor is it about to enter into administration".
And they are being backed by their bank, the Co-op, who made it clear in a statement that it is supporting the club and are disappointed by the action from Her Majesty's Revenue and Customs.
The Owls said in a statement: "Sheffield Wednesday would like to inform supporters that their club is not about to be wound up, nor is it about to enter into administration.
"We have been involved in dialogue with HMRC for a number of weeks. As such we have been somewhat surprised and disappointed by their decision to seek a winding-up order at this time.
"We understand that HMRC is taking a tougher line in general with football clubs, but feel their actions are disproportionate and will raise unnecessary speculation as to the financial position of the club. We can inform supporters that the club, working in partnership with the Co-operative Bank and their advise rs, will seek to settle this matter as soon as is practical.
"Furthermore, during a period of change this summer, the bank has been an integral partner for Sheffield Wednesday. We will continue to work together to create the best environment possible for the club to move forward, including on-going dialogue with potential investors that will seek to secure the long term financial health of the club".
The Co-op Bank statement says: "It is disappointing to note that HMRC have presented a winding-up order in respect of Sheffield Wednesday. The Co-operative Bank has been working extremely hard for some time with representatives of the club and investors to explore ways to ensure its future stability.
"At present we are continuing to enter into dialogue with our advisers, Sheffield Wednesday and potential investors to explore solutions which will allow the club to operate on a sound and secure financial footing."
Wednesday also confirmed the petition relates to an outstanding PAYE – tax – balance of 550,000.
Owls fan Mr Blunkett, whose constituency includes the club, said: "I will be in immediate touch with Sheffield Wednesday Football Club, as I would for any other enterprise in my constituency, to offer every possible assistance – including intervention with Her Majesty's Revenue and Customs.
"I share the club's concern about pre-emptive moves, particularly where, with the Co-operative Bank, constructive discussions were in progress.
"Action of this kind can only cause both deep distress to the fans and the club's management, and undermine the club's efforts to obtain substantial funding for future development.
"Quite simply, this move is deeply unhelpful in every respect and I hope that HMRC will move immediately to allay fears and to find a sensible solution. In the meantime, I am making preliminary contact with the HMRC chief executive, Lesley Strathie, in order to facilitate the necessary behind-the-scenes work to get this matter resolved."
Mr Blunkett was also due to meet the chairman of fans' group Wednesdayite at discuss the situation.
Sheffield South East MP Clive Betts said: "It was an absolute shock, I had no idea there were any difficulties. I have no idea whether it is a long-running persistent problem or whether it's deferring expenditure to help its cash flow in the short term.
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