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No Abramovich figure coming to Owls' rescue

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Published Date: 13 May 2009
By Bob Westerdale
Sheffield Wednesday
Sheffield Wednesday today made it clear that no Roman Abramovich-style figure would wipe out their £26 million debts ... but claimed the club WILL deliver new investment to drive it towards a Premier League future.
While the timing of any investment windfall seems as difficult to determine as ever it was, Wednesday insist "parties from three continents" remain interested in a deal.

Wednesday initially set a deadline for financial help for March 31, but they now suggest time is no longer "of the essence" because of the understanding they have with their business partners and creditors. There will be no "quick fix," they say.

Instead, the Championship club are scouring the world for "individuals or groups with proven business backgrounds."

A communique over their investment strategy follows a recent trip to San Francisco where Wednesday chairman Lee Strafford and Nick Parker, the chief executive, sought backers.

The statement contains no references to any planned re-structuring of Wednesday's debt .

A healthy uptake of season tickets would be another positive sign for market-watchers.

However, they remain confident they will deliver "new investment - and when it does come, it will act as the catalyst for reaching the club's goals."

Intriguingly, the statement spells out specifically that no Fairy Godmother is waiting in the wings.

"The notion that a mega-rich investor will come in and wipe the club's debt in one fell swoop, is not a viable option," it says.

"This would result in the vast majority of any incoming money going straight to creditors and not having any direct benefit to the club."

The Owls admit their "disparate" shareholding and debt structure was unappealing for any investor, "as money would have to be spent on creditors and shareholders prior to any money being put back into the club."

It continued: "However, we believe that our proposal to investors and creditors offers the best long-term future for the club – namely that any finance is best used for the betterment of Sheffield Wednesday and this provides a better long-term financial return for all parties."

The club was "as secure as it could be" and their relationship with the Co-operative Bank remained strong.

"The club continues to talk to potential investors... It would be easy to overtly emphasise the investment opportunity in a very public manner but it is essential that the board engage with the right people in the right way.

"Time is not of the essence due to the financial stability of the club.

The previous timetable was set to focus minds on the sell side – these matters will take time to resolve but the Board remain confident in their ability to find a solution."

The club is looking for a "hands-off" investor" who would want the club run by a "good local management."

READ MORE: Q&A with Sheffield Wednesday Chief Executive Nick Parker

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  • Last Updated: 14 May 2009 1:36 PM
  • Source: Sheffield Star
  • Location: Sheffield
 
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maygurney owl,

london 13/05/2009 10:11:26
Dont count on season ticket sales they will not come i am sorry to say.You have to speculate to a accumulate and thats what the fans want to see before spending there cash.
(who paid for the trip to us then the club???)
2

flockyowl,

13/05/2009 12:22:39
Is that co-op bank manager a wed fan by any chance?.
Hope he doesnt get the sack,next one might be a blunt fan.
3

Chadwick Towers,

Sheffield 13/05/2009 12:40:08
Yeah, that thought crossed my mind too Flockyowl. What's that bit they always put on the small print?... "The Mortgage Rate can go up as well as down" (or something like that).

We do have a good relationship with the CO-OP but it only takes them to tighten their belts and their recent patience may be severely tested. Let's hope they are as helpful as they have been in the past eh?
4

Jamesowl,

13/05/2009 13:42:54
Come on, Owls fans, the best way to support the club is by buying a season ticket!
I hope the Co-op manager doesn't get the sack, it could be bad news for us if he did but thanks, Co-op manager!
5

SheffieldsBiggestClub,

Laughing at Swillsboro 13/05/2009 16:52:23
No Abramovich figure coming to Owls' rescue

You wont get one penny off anyone to invest in your 'has been' club..........Theyve more sense!!!

Wember-lee
Wember-lee
6

Astimegoesby,

13/05/2009 17:00:17
The board haven't secured new investment therefore the business plan seems in the short to medium term to be substantially based on 16500 season ticket sales. Last season 10000 tickets were purchased what is the affect on the business if we increase this number by 25% to 12500.......which is good but 25% short of the target.
I have a horible feeling its going to be another average season.
7

SoutheyOwl 74,

Laughing at The Bacon Factory Bramall Lane 13/05/2009 17:33:27
What a sad sad life you must lead SBC Your teams at Wembley and all you can do is comment on here. Then again any news from Hillsborough even if its getting a new coat of paint on the goal posts is a lot more intresting than anything you piggy's are up to.

Good Luck Burnley UTO !!!!!!!!!!!!!!
8

Wimbledon Owl,

Have a guess 13/05/2009 17:53:03
I can appreciate what Lee Stafford has done and what he is doing however it appears to be a smoke screen to convince fans to buy season tickets. That is fair enough but to use the investment as a carrot is wrong.

Reading between the lines Lee hopes to secure a silent investor who will let him and his sidekick run the show.

The reallity is we are paying the price for mismanagement of the club in the early 90's and the contracts that were entered into prior to relegation. the road back will be a long one and until we have repaid our debts we will always struggle. That said all clubs have some debt so what is our issue? The club is worth far more than we owe but the debt servicing costs mean we do not have a decent budget for wages so we can't secure decent players.

Until we generate money as a club season on season we will never have a decent budget and will always be selling our new young talents. We will also not attract investors. So on that basis I agree with Lee Stafford.

However, I am tired of the constant PR and hot air. Let's just get on with it.

9

UTO1,

13/05/2009 18:11:34
He always is SoutheyOwl. But after we beat the blunts SBC went into hiding twice, so come may 25th he will not be on for a week or two after Burnley have hammered them! They've already done the double over the piggies so should be an easy day for Burnley!! LOL.

I doubt under the current climate in the financial world it's anything to do with the Business Plan, Astimegoesby! Firstly the debt would scare anyone off, unless we went into administration first, ready for a new owner to walk in with a clean slate. Secondly I just cannot see anyone investing in a club who aren't in the Premiership already!


10

owl down under,

13/05/2009 18:31:35
1. Bank managers do not have clout enough to foreclose on such a debt irrespective of their "football preferences" They also have shareholders to answer to.

2. Who in their right mind would settle a 26,000,000 debt before spending another 50,000,000 just to kick start a football club.

3. Two airfares to SanFransisco mean nothing in financial terms if interested parties are being sought.

4. Anyone with any naus must realise that it will be a long grind back to respectability given the past few years of mismanagement, but with the current management team it is very possible that long term success will be achieved.

5. Three years ago Weds were in league one. This year they could have reached the play offs for the premier league with a few more wins under their belt. not a bad result in my book.

6. Progress is being made--get off their backs and let them continue the good work.
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