Sheffield Wednesday: Owls could face transfer embargo or points deduction after being charged with breaching EFL's financial rules

The EFL confirmed this afternoon that Wednesday had been hit with “a number of charges relating to alleged breaches of EFL Rules.”

The charges relate to the sale of Hillsborough to a company set up by Owls owner Dejphon Chansiri. The sale left Wednesday with a pre-tax profit of £2.5m and without it, they would have lost over £34m before tax.

The EFL’s profit and sustainability rules in the Championship allow clubs to lose as much as £39m over a three year period. In the previous two years, the Owls recorded combined pre-tax losses of more than £30.5m.

Wednesday vowed to “vigorously defend” the charges in a statement of their own.

But the EFL warned that “if the charges are proven, the Commission can impose any of the sanctions set out in EFL Regulation 92.2.”

That regulation covers a wide range of punishments, including a reprimand or a warning or the payment of compensation.

But it also leaves open the possibility of a points deduction, an embargo on signings – or even, more strongly, “recommend expulsion from membership of The League”.

The EFL’s full statement read: “Following a formal investigation into financial information provided by Sheffield Wednesday in relation to the Club’s 2017/18 Profitability and Sustainability (P&S) submission, the EFL has today issued a number of charges relating to alleged breaches of EFL Rules.

“Earlier this year the EFL launched an investigation into the Club’s financial submission for the period ending July 2018 under the relevant P&S Rules following the completion of the sale of Hillsborough Stadium.

“The EFL has reviewed a large number of documents obtained from the Club as part of this process and concluded there is sufficient evidence to justify issuing charges of Misconduct. The charges are in respect of a number of allegations regarding the process of how and when the stadium was sold and the inclusion of the profits in the 2017/18 accounts.

“All charges will be considered by an independent Disciplinary Commission and, if the charges are proven, the Commission can impose any of the sanctions set out in EFL Regulation 92.2.

“The EFL Board has previously agreed and communicated with all Championship Clubs a set of sanctioning guidelines, but the Commission, under EFL Regulations, has the ability to invoke a full range of sanctions should the breach be confirmed.

“The EFL continues to review the Club’s 2018/19 P&S submissions. As these matters are now subject to proceedings, the EFL will be making no further comment at this time.”