Sheffield Wednesday handed 'liquidated' warning as takeover threat is live | OneFootball

Sheffield Wednesday have been warned that they could be liquidated following the latest takeover twists at Hillsborough

Sheffield Wednesday have been told that the future of the Hillsborough club is in danger despite David Storch's continued takeover efforts.

Storch has been named as the Owls' preferred bidder and has begun undergoing the EFL's Owners and Directors' Test.

The American will then be subject to the Independent Football Regulator's checks by May, if his Wednesday takeover isn't completed by the fifth month of the year.

Storch recently attended the Owls' Championship clash with Watford and has made a strong impression on key figures at Hillsborough, such as first-team boss Henrik Pedersen.

Sheffield Wednesday warned liquidation could beckon amid severe EFL restrictions

Wednesday have already been relegated to League One, after being deducted 18 points this season as a result of former owner Dejphon Chansiri's wrongdoings.

The Owls are set to be docked a further 15 points next term because Storch's bid fell below the amount required to pay the creditors 25p in the pound.

Another sanction that the EFL are set to impose on the Hillsborough club will mean that their individual player wages are going to be capped at £7k per week, which increases the risk of further relegation to League Two, as it hampers the South Yorkshire side's chances of building a competitive third-tier squad.

Storch's Arise consortium have appointed sports lawyer Nick De Marco, who may challenge the EFL's restrictions.

However, discussing those developments with BBC Sport, James Silverwood, who is the vice-chair of Wednesday's Supporters' Trust, said: "There is a real, credible threat to the future of Sheffield Wednesday.

"There is the potential that, under those draconian restrictions, Sheffield Wednesday are not investable. And if nobody invests in Sheffield Wednesday, then it will be liquidated. We lose over 170 years of football in heritage and history."

Storch is continuing his takeover efforts for now, but former preferred bidder James Bord's deal collapsed, and Owls fans can only hope that a similar eventuality doesn't occur once again.

David Storch comments mean that Sheffield Wednesday fans can retain hope for now

Silverwood is right to outline that the worst-case scenario for Wednesday is liquidation, a desperately sad event that happened to former EFL Cubs Bury and Macclesfield.

Furthermore, investing in a side who are set to be handed severe restrictions, which could effectively prompt a second relegation in as many seasons, is a significantly less attractive proposition than putting money into a club who have not been given such setbacks.

However, Storch is clearly enthused about leading the Owls to a healthier future for now, and recently posted on X: "Back in the States now, reflecting on an unbelievable week in Sheffield.

"On behalf of Michael (Storch), Tom (Costin) and myself, I want to thank the wonderful city of Sheffield, the local members of the community we met, the Supporters’ Trust and the Sheffield Wednesday fans for making us feel so incredibly welcome.

"We are listening to and collaborating with talented Wednesdayites across the city to ensure we deliver a best-in-class fan experience. Whilst we continue to work diligently to become stewards of this unique and historic club, please know that we will be doing everything we can in the interest of a “Better Wednesday” and a brighter future for everyone associated with Sheffield Wednesday."

Those words indicate that Storch has not been put off by the Owls' restrictions for now, which could do enough to stave off the threat of liquidation.

Furthermore, Sheffield Star columnist and talkSPORT reporter Alan Biggs reported via X that Wednesday's administrators view Mike Ashley as a backstop in the takeover picture, meaning that there is a strong alternative to Storch if necessary.