Six-figure debt coming to Sheffield Wednesday - administration waiting game weakens payment chances
A significant further Sheffield Wednesday payment to HMRC is due this week, the Star understands, with debt mounting on the club amid indecision over what happens next.
The Star were among those to report last week that Wednesday had been threatened by HMRC with a winding-up petition due to an outstanding debt of around £1m, with possible enforcement options including an application to put the club into administration. Owner Dejphon Chansiri would also have the option to do so voluntarily given limited cashflow options and mounting pressure surrounding club debts to a range of creditors.
A further HMRC payment deadline of October 22 centres on the payment of PAYE fees and is not unique to Wednesday. It is assumed the new figure due will cross into six figures and would be added on to the £1m figure already owed to the tax authority. The Star has no knowledge of a winding-up petition having been lodged at the time of publication, though sources continue to suggest it to be ‘imminent’ if the debt continues to go unpaid or if a repayment agreement cannot be reached.
The club has been unable to fulfil basic salary obligations to its workforce in five of the last seven months and with October’s wages due on Friday 31, it’s understood that the club have to date been unable to reassure staff that they will be paid on time. Wages for September were eventually settled two weeks on from the expected payday of employees across departments, an outlay The Star understands was covered mostly if not entirely by receipt of a standard payment from the EFL.
In light of funding concerns stretching from payment delays as far back as March, tens of thousands of Wednesday fans have supported an ongoing boycott of spending at the club this season in an effort to withdraw supporter funding and accelerate the end of Chansiri’s ownership. The boycott has been effective to that sentiment, with The Star of the understanding the boycott is depriving the club a six-figure sum each matchday, meaning debts owed including that of HMRC have not having been covered via fan input.
It can be safely assumed that administration, either voluntary or via enforcement by creditors, would reverse the boycott and reopen the floodgates to matchday revenue and supporter spending with a view to fans going back to supporting their club - and therefore its employees - financially. Wednesday have two home matches this week and it is felt the delay in decisive action over the prospect of administration will cost vital revenue ahead of October’s payday - and the payment of other important debts to creditors and suppliers.