Dejphon Chansiri unmoved, EFL reject legal effort - David Storch says Sheffield Wednesday in 'deep distress'
David Storch is leading the US consortium looking to take control of crisis-stricken Sheffield Wednesday - and has released a lengthy statement outlining the current status of proceedings.
The leader of the preferred bidder group looking to rescue Sheffield Wednesday has made clear attempts to negotiate a deal with Dejphon Chansiri over the debts owed to him have gone unanswered. He has also stated that the EFL are standing firm on the 15-point deduction the club is set to face heading into their rebuild campaign in League One - and that intentions to challenge the ruling in arbitration have been rejected by the authority.
Arise Capital Partners’ managing partner David Storch has maintained the group’s ‘absolute intention’ to push on towards a May 1 completion date and has stated that their immediate addressing of ‘serious infrastructure issues’ at Hillsborough stadium will be taken only on the basis that the EFL agree to a ‘reasonable approach’ to the intended 15-point penalty heading into their rebuild effort in League One.
The deduction comes due to the club’s inability to exit their administration process while satisfying the EFL’s ‘minimum dividend’ rule. It’s a fate that could in theory be avoided should outgoing owner Chansiri reduce his substantial creditor claim and waive a portion of the debt that is owed to him - and that would not be paid to him in any event.
Storch claims Chansiri has refused to engage with administrators at Begbies Traynor over the matter, leaving discussions with the EFL over whether they could reduce the sanction, or allow the case to go through independent arbitration proceedings. The statement suggests the potential course of an arbitration challenge has been denied by the authority.
The Sheffield Wednesday Supporters Trust have been among those to raise the case that there is leniency in the wording of the EFL’s insolvency policy. Though there is no precedent for the breaking of the minimum dividend rule, The Star understands the EFL believe the ruling to be ‘enshrined’ in their regulations.
In his statement, Storch says the consortium ‘fundamentally disagree’ with the imposition of the 15-point penalty and made clear the scale of the work and investment necessary to bring facilities to appropriate standards at Hillsborough stadium.
He states that the club is in a state of ‘deep distress’ and that ‘without the right support and a fair regulatory approach, risks entering what could become one of the most challenging seasons in EFL history’.
A 631-word statement released on Storch’s X account on Wednesday evening reads as follows:
“I want to speak directly to the supporters of Sheffield Wednesday and the wider football community at what is a critical moment for this historic club.
“Over the past several months, my team at Arise Capital and I have worked tirelessly, professionally, and in good faith to secure the future of Sheffield Wednesday. Following extensive and constructive discussions with the English Football League (EFL), we submitted detailed representations just ahead of Easter for consideration by the Board, with the aim of addressing their proposed sanctions and ensuring a fair and proportionate outcome. These submissions were supported by powerful representations made by The SWFC Supporters Trust, Clive Betts, Lord David Blunkett and a group of additional MPs.
“Despite these efforts, we have now been informed that a 15-point penalty is set to be imposed at the start of next season. We fundamentally disagree with this decision.
“We also requested the opportunity for this matter to be reviewed through independent arbitration— going as far as offering to cover all associated legal costs ourselves in the interest of transparency and fairness. That request has been denied.
“This is deeply frustrating, not just for us, but for everyone who cares about the future of Sheffield Wednesday.
“What makes this situation particularly difficult is that it is entirely unique. A significant portion of the club’s debt sits with its former owner, Dejphon Chansiri, who has not agreed to write down or restructure that debt. We have made repeated attempts, through the administrators, to engage with Mr. Chansiri in order to find a constructive resolution. Those requests have gone unanswered.
“At the same time, as our due diligence has progressed, the full scale of the serious infrastructure challenges has become apparent. These include inadequate water supply affecting even basic sanitation, and insufficient electrical capacity to support certain essential upgrades. The work required is significant and urgent, and likely to result in the need to invest substantial further sums. These are issues that Mr Chansiri must have known about for many years, yet we are required to fix them in months.
“Combined with a severely depleted playing squad and coming off such an unsuccessful season, these conditions point to a club in deep distress—one that, without the right support and a fair regulatory approach, risks entering what could become one of the most challenging seasons in EFL history.
“Despite all of this, let me be clear: it remains our absolute intention to complete this transaction by 1 May.
“Sheffield Wednesday is worth saving. We believe in its supporters, its history, and its future. And, as we have shown to date, we remain prepared to invest the time, capital, and energy required to rebuild this club properly—from its infrastructure to its footballing foundations.
“However, this is a unique situation, and it requires a fair and proportionate response.
“We are simply asking to be heard properly, for the circumstances to be fully considered, and for a decision that reflects the reality on the ground—not one that risks further harm to a club facing extraordinary challenges and that has already suffered substantial penalties.
“We have today responded in full to the EFL, and have committed that we will immediately address the serious infrastructure issues, on the basis that the EFL agree to a reasonable approach to the intended 15 point penalty to be applied next season.
“I remain hopeful that a constructive path forward can still be found.
“At the same time, I would encourage those who care about the future of the club to make their voices heard in a constructive and responsible way. Supporters and the wider football community can play an important role by engaging across social media using the hashtag #FairDealForWednesday.
“Together, we can help ensure that this historic club is given the fair opportunity it deserves.”