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Complex deal to bring £50m to Hillsborough
WEDNESDAY are believed to be trying to bring in around £50 million over the next three to five years under the proposed deal with a mystery, four-party syndicate drawn from three continents.
It is understood that all four – comprising investment institutions and wealthy individuals – remain at the negotiating table and that interest is being expanded to include others.
The club, instead of having a deal whereby someone buys enough of the current shares to hold a controlling interest, could well be leaning towards a massive issue of new shares which would be purchased by the syndicate, with all the money flowing into the club.
This would be the first stage in a long-term business plan which would then see further investment coming in over the next few years. There are plans to involve local investors as well.
If events go as the club hope then an extraordinary general meeting could be held as early as mid to late January to ask shareholders to approve a share issue, followed by a further EGM by the end of March to rubber stamp an investment deal.
As no deal has yet been completed, it is not yet known how much money Brian Laws would get to spend or exactly when a big influx into the transfer kitty will come – but it almost certainly will not be this season.
The deal currently being negotiated is regarded as very complex, as it has to involve not only Wednesday and the investors but the club's bank, plus those with loans resting in the club, and major shareholders.
Each external party will have their own interests to consider, but chairman Lee Strafford and chief executive Nick Parker will be trying to strike the best possible deal for the club. Talks are thought to be ongoing between the various parties.
Strafford has built on the Owls' strong relationship with their bank, the Co-op, who are backing the club's initiative and are key players because they are owed 22m.
The club's other three plc directors, Geoff Hulley, Ken Cooke and Bob Grierson, are said to be very supportive of what Stafford and Parker are doing.
However, it is understood that if a takeover is secured then the board would be restructured, though with Strafford and Parker staying in their current roles.
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