Exclusive:Sheffield Wednesday receive proof of funds from two parties as sales process attracts dozens
Two parties interested in the acquisition of Sheffield Wednesday have sent proof of funds after administrators began marketing the club in the last week, The Star can reveal.
Wednesday were officially placed in administration shortly before midday last Friday with pressure of a HMRC winding-up petition rising on former chairman Dejphon Chansiri. Months of concern over the sales process overseen by the Thai saw little progress on the sale of the club, with sources suggesting as recently as last month that things were going nowhere before his exit.
The decision to place the club into administration has put control of the sales process into the hands of insolvency specialists Begbies Traynor LLP, with Kris Wigfield, Paul Stanley and Julian Pitts appointed as joint-administrators. Contrary to reports elsewhere, sources have indicated to The Star that early activity around the sale of the club has been highly encouraging.
The Star is told that within the first 48 hours of the club entering administration, a total of 68 interested parties lodged an expression of interest with Begbies Traynor and - after a vetting process undertaken by the administrators - were sent non-disclosure agreements (NDAs) that would allow for the next stage in discussions.
We can reveal that of those 68 interested parties, a total of 25 have already returned signed NDAs to the club - in doing so disclosing their identities - and have therefore been granted access to the club’s data room for a closer look at the club’s status ahead of any next steps towards negotiation.
Begbies Traynor are understood to be requiring proof of funds of at least £50m in their opening process to weed out time-wasters. The Star is told that two separate parties have already delivered on this proof of funds, with more expected to come.
Though not a concrete rule, the administrators are duty-bound to market the club for a period of at least 28 days before consideration of a ‘preferred bidder’ status. Further vetting processes designed to eliminate any activity with parties that would not satisfy the EFL’s fit and proper persons requirements will also be had before discussions move on.
In the wake of the departure of failed former chairman Chansiri, a reversal of a fan spending boycott has brought an about-term in the club’s short-term cashflow, with players, coaches and non-football staff having been told they will be paid on time tomorrow (Friday 31), their scheduled October payday. Efforts continue to raise the revenue to tide the club over in the coming weeks while a buyer is secured.