Exclusive:How EFL's Sheffield Wednesday constraints would work - and where it would leave Svante Ingelsson extension
Proposed recruitment constraints to be placed on Sheffield Wednesday next season would cap wages at £7m - though the EFL maintain they are ‘open’ to negotiation on that front.
The proposed restrictions also cap individual player wages at £7k per week, which would come on top of a 15-point deduction and an ongoing fee restriction ban to run until the summer of 2027. The recruitment measures are part of an EFL business plan communicated to both Wednesday and the newly-crowned preferred bidders Arise shortly before the US-based group agreed a deal to sign as the prospective next group to take the process forward - and are expected to be contested.
Seeking clarity, The Star understands the currently proposed £7m cap to be based around playing wages only, a figure that would place it somewhere around the average line in terms of League One spending.
Where would it leave them?
Per an administration proposal lodged to creditors at the turn of the month, total wages in the period since administration have totalled £3.7m, which extrapolated over 12 months would put the club’s total wage expenditure - including football and non-football staff - at around around £17.4m when accounting for PAYE and national insurance. On its current trend, this figure would drop further when accounting for the losses of Yan Valery and to a lesser extent, those of Barry Bannan, Bailey Cadamarteri and Yisa Alao.
Keeping to a £7m squad wage would prove more difficult for Wednesday than other clubs given some highly-paid senior players have contracts that extend into next season, with their earnings to count towards that figure. Relegation clauses in player contracts are routine and most if not all would expect a sharp dip in their salaries when the current season ticks over to the next.
To put things into context, the loaning out of Yan Valery to Young Boys for the second half of the campaign saved the club over £500k. The Tunisia international is contracted into next season and while he would be seen as a saleable asset, the likes of Ike Ugbo and Di’Shon Bernard might prove more difficult to move on if it is deemed necessary Wednesday do so. These contracts - though likely to drop heavily in League One - would eat into any headroom the club has to rebuild the squad.
What about incoming players - and extension clauses?
While work can be done to make the most of a £7m total wage cap, the capping of individual wages at £7k could be seen to be more restrictive as the Owls look to add proven, individual quality to a squad that - at the proposed restrictions - would likely be reliant on a good number of young players once again.
Some players are believed to have extension clauses in their deal, with player of the year in-waiting Svante Ingelsson at the head of the list. Concerns have been raised over whether the triggering of a clause to put another year on his contract could come in over £7k-per-week and while The Star cannot confirm whether or not that is the case, the understanding is that the wage cap will not include players with extension options on their existing deals and Ingelsson will be free to re-sign.
So what’s next?
There’s a school of thought that the ‘seven and seven’ proposal is an ‘opening serve’ from the EFL and that it will be eased as Arise and football authorities enter into discussions over what comes next. The next week is an important one, with fears over the weight of restrictions proposed to fall on the club and how viable that makes a purchase for prospective buyers - be that Arise or anyone else.
“Let’s see what happens in the next week,” Wednesday boss Henrik Pedersen with a look of concern. “But of course it would be bad to end up with 15 points deduction and the salary caps in wages and the full amount. Let’s see what happens. I really hope for the best.”
Asked for his initial reaction to the news, the Dane said: “Like all Sheffield Wednesday fans, I thought ‘Why should we be punished again?’ But let’s see what happens. It is all out of my control, but I know people are working and I just hope for all the best.”