What could happen to Sheffield Wednesday if Chansiri doesn't pay looming £7.3m debt | OneFootball

Sheffield Wednesday are facing a pivotal repayment worth £7.3m

Sheffield Wednesday could be put into administration if the 30 September deadline is not met for a repayment on a £7.3 million loan.

According to The Star, this is one option on the table for New Avenue Projects, who are a broker working on behalf of one of the Owls’ creditors, whose identity remains unknown at this time.

The Yorkshire outfit have been struggling financially in recent months, with late payments to players causing a number of first team stars to terminate their contracts during the summer.

Henrik Pedersen also replaced Danny Rohl as head coach following his departure, with supporters putting intense pressure on owner Dejphon Chansiri to sell his stake in the Championship side.

Sheffield Wednesday administration danger

Sheffield Wednesday are reportedly facing the threat of administration if the £7.3 million payment owed through New Avenue Projects is not met by the 30 September deadline.

It is understood that some grace period could be given to meet that deadline, although some payment may have already been requested by the creditor.

It’s believed that the original sum received in September 2020 was worth £6.4 million, and was taken out against Hillsborough stadium, effectively making it a mortgage, but it has grown to a value of £7.3 million through interest.

While the repayment has been rolled over each year, it’s now being claimed that the creditor is not willing to do that this year as they look to reduce the risk of never securing their money given Sheffield Wednesday’s financial issues this year.

The club have struggled with meeting deadlines for player wage payments this year, but it’s understood that their commitments with HMRC have been met after salaries were paid on time last month.

It is possible that Sheffield Wednesday will meet the payment requirements made by New Avenue Projects, in which case no action will need to be taken against the club.

However, it’s been reported that a failure to do so could land the Yorkshire outfit in administration, or possibly even put their home stadium into receivership, which could force through a sale of the asset, and potentially even the club itself.

But it remains unclear just yet what is next for the Owls, with no confirmation given on any repayments being met.

When it rains it pours for Sheffield Wednesday

This is a consequence of the financial problems already holding Sheffield Wednesday back, as this repayment could’ve rolled on for another 12 months if the creditor wanted.

Unfortunately for supporters, there is no real immediate end in sight for the Chansiri ownership, and this is the latest justification for their protesting against him.

Losing ownership of the stadium would be a major setback, but would likely be preferable to going into administration at this stage.

Either way, Sheffield Wednesday are already looking at a likely points deduction regardless, so adding another penalty on top of that would all but guarantee their relegation this season.