Mystery fan benefactor gave Sheffield Wednesday seven-figure interest-free loan
An anonymous Sheffield Wednesday supporter has responded to requests of financial support to the club by providing it with a sizeable interest-free loan.
Wednesday were placed in administration towards the end of last month by outgoing owner Dejphon Chansiri amid rising pressure from creditors including HMRC and the holders of a loan on Hillsborough stadium. Appointed administrators at Begbies Traynor LLP quickly called on the Owls fanbase to re-engage with the club and support the club’s financial upkeep after months of a widely-acknowledged spending boycott - a call that has been answered impressively.
Alongside the remarkable commitment of the wider fan base in flooding the club’s revenues streams arrived a £1m loan, committed to Wednesday by a wealthy supporter on the condition of anonymity and on an interest-free basis. The cash, which it is understood will be repaid to the mystery lender after the sale of the club or by January 31 - whichever comes later - has helped support the upkeep of the club’s running costs and will continue to do so throughout the administration period. The loan has and will not go towards fees towards fees accrued by the administrators or legal fees.
While it’s understood that the sales process is going positively with 11 interested parties having provided a £50m proof of funds ahead of a bidding stage, it’s believed that the loan was committed by the lender in the knowledge that if the administrators had ultimately failed to move the club on and Wednesday were to be liquidated without assets, they would be liable to lose the £1m.
The Star has reason to believe that the loan came about following work from the Sheffield Wednesday Supporters Trust in engaging a number of Wednesday supporting, high net-worth individuals after they were advised by the EFL to go about organising a fan-led ownership plan. This advice was given in order to safeguard the club against any risk of administration not proving fruitful in securing new ownership.
After initial meetings with Begbies Traynor suggested a high confidence that action would not be necessary, those efforts were redirected towards approaching their list of wealthy supporters to encourage a combined lending to the club. In correspondence seen by The Star and sent on November 4, those supporters were each asked to commit a suggested minimum loan of £100k in an effort to raise anywhere upto £2m as part of an ‘Emergency Working Capital Fund’.
It’s understood that on the afternoon leading into the home clash with Norwich City on November 5, the mystery lender came forward to the club and that the cash was received on November 7. Thankful administrators have assured The Star that the loan comes with no business ‘angle’ and that it is simply the generous act of a passionate supporter who sought to help the club at its hour of need.
Steve Chu, secretary of the Sheffield Wednesday Supporters Trust, said: “It’s an incredible gesture and it’s helped bring everyone at the club breathing space to plan for the future. Soon after it was received, staff were told they would be paid for November and early at Christmas. On one level it’s a simple donation, but the level of good that’s come out of it very quickly is there for all to see.
“I think continually over the last few months, Wednesday fans have surprised me. They’ve really come to the fore when the club needed them. I can think of so many instances, protests, boycotts, we had no indication of how many fans would ultimately come with us. Wednesday is not a traditionally protesting fanbase, but it shows the depths to which we fell in the past few months that people have rallied round, but also the strength of passion that there is out there for the club.”