Sheffield Wednesday will not be hit with points deduction heading into next season - takeover confirmed
Sheffield Wednesday’s takeover by US consortium Arise Capital Partners has been confirmed in a pre-match announcement at Hillsborough - with a very special surprise revealed for Owls fans.
Newly-taken over Sheffield Wednesday will head into their vast rebuild mission from League One next season without having to face a points deduction - despite not fulfilling the EFL’s minimum dividend rule that threatened them with a 15-point haircut.
As reported by The Star, the takeover of the club out of administration by US consortium Arise Capital Partners completed on Friday but was yet to be officially announced by the club or EFL. A sold-out Hillsborough gathered to celebrate the news in their final match of a torrid campaign on Saturday, with the news announced live to the club’s supporters in a moment that will live long in the memory.
The absence of a points deduction heading into next season comes after weeks of discussion between Arise, the administrators and the EFL. As previously reported by The Star, attempts were made to engage with former owner Chansiri with regard to the buying of his debt but have not been resolved. Conversations and negotiations around the sanction they receive have been ongoing for some time.
The club will be subject to restrictions on their spending heading into what will need to be a vast summer rebuild - though these are understood to be strongly eased from the £7k-per-week individual wage cap and £7m total wage limit discussed by the EFL as a starting point for negotiations some weeks ago.
A Sheffield Wednesday statement and headed ‘Sheffield Wednesday Reborn’, read in part: “The Joint Administrators of Sheffield Wednesday Football Club Limited are pleased to confirm the successful completion of the sale of the Club to Arise Capital Partners LLC, a consortium led by David Storch, alongside Michael Storch and Tom Costin.
“The transaction has been completed following constructive engagement with key stakeholders, including the English Football League (EFL), and in accordance with all relevant regulatory requirements.
“As part of this process, the EFL Board exercised its discretion, as provided by the Insolvency Policy, and concluded that it would not be appropriate to impose a 15-point deduction on the Club following its exit from Administration. As such, the Club will begin the upcoming season on 0 points. A position has also been agreed on wage and transfer parameters that is both acceptable and supportive of the Club’s forward progress.
“The sale secures the long-term future of the Club and marks the beginning of a new era for Sheffield Wednesday - one built on stability, responsibility, and renewed belief.
“Throughout this turbulent period in the Club’s history, staff and players have shown unwavering professionalism and pride. Supporters - through uncertainty and frustration - have shown they are amongst the most loyal in the land.”