Why Sheffield Wednesday takeover is creating a headache for new Independent Football Regulator - reader's letter
Aaryaman Banerji, Head of football governance at LCP, gives his take on the current Sheffield Wednesday situation
The continuing developments at Sheffield Wednesday have, in many facets, created a very challenging situation for the new Independent Football Regulator.
Quite aside from, in the early weeks of its operation, having to contend with the administration of a major Championship club, the Regulator’s task is becoming increasingly testing through complications involving Wednesday’s sale.
It is this latter problem that has led to the EFL imposing a further 15-point ban for the club, to be applied from season 2026/2027, during which time they will compete in League One.
This comes after an 18-point ban has already been imposed during the current season in the Championship, handed down after entering administration and then failing to meet payment obligations.
To the Sheffield Wednesday Supporters’ Trust, the emergence of another points deduction, applying to next season, seems to be a case of double jeopardy.
The rationale behind the latest sanction is that the currently favoured bid (led by American businessman David Storch) would still not sufficiently cover unsecured creditors, should the takeover be completed as currently slated.
The Supporters’ Trust has asked the Independent Football Regulator to assess whether that might be unfair.
This, however, is a challenging route to take.
The IFR has not been designed with a remit to be involved in reviewing sanctions handed down by league bodies, including points deductions; it is predominantly a financially focused club regulator.
Whilst the IFR may work closely with the EFL on this, it will not have any direct recourse to alter the proposed sanction. That, however, does not preclude the possibility of private action being taken directly by the Supporters’ Trust or the club against the EFL, should they feel there have been any shortcomings in the EFL’s regulatory oversight.
Whilst that route would be the stronger course of appeal, it may also require significant funds to pursue. Both the club and the fanbase therefore need to think carefully about where their resources may best be pooled.