How many points Sheffield Wednesday would be deducted if they go into administration | OneFootball

The Owls face a potential penalty if they fail to pay their debts by the end of the month

Sheffield Wednesday could face a possible points deduction, as a deadline to pay a £7.3 million loan looms at the end of September.

The Sheffield Star reported on September 10 that the Owls are under pressure to pay a £7.3 million loan payment, which currently hangs over the leasehold of their ground, Hillsborough, which has otherwise been rolled over on a year-by-year basis since the sum was initially put in, in September 2020.

Understandably, New Avenue Projects, the broker on the deal, isn't willing to roll the deal over for another year, as "the creditors seek to reduce their risk level and retrieve part of the loan's value".

Given the crippling state Dejphon Chansiri has put Sheffield Wednesday in over the past few months, it makes sense that lenders are demanding money back, but for the Owls, who have seemingly got over their delayed wage payment fiasco, it signifies another possible disaster, as it has been reported that the club could be put into administration if an agreement isn't made.

How many points Sheffield Wednesday could be deducted if the club goes into administration

If it is deemed that Dejphon Chansiri cannot pay off his outstanding debts, in this case, the £7.3 million loan he has on Hillsborough, Sheffield Wednesday could be put into administration.

This would be the first time that an EFL club has reached such a low since Derby County in 2021. Then, the Rams were deducted 12 points for entering the state, as well as a further nine due to financial mismanagement under former owner Mel Morris.

Other than administration, it has been reported that a receiver could be appointed over Hillsborough, who would claim the ground, meaning that Wednesday would no longer own it. In the end, it's the choice between two evils.

Ultimately, this would mean that Chansiri's iron grip on the club would be loosened, as it has been suggested that an insolvency practitioner could be appointed to manage the sale of the club and ensure its future, but the fact that it would have to go this far just shows the dire situation Sheffield Wednesday finds itself in.

A 12-point deduction would make an already improbable survival dream impossible

Many already have Sheffield Wednesday tipped to wind up in the Championship's bottom three come the end of the season, but a 12-point deduction due to administration would make it almost certain.

The Owls already have a threadbare squad and have had to call on inexperienced youngsters to help fill the numbers throughout the opening month of the campaign, and more off-field troubles could make an already improbable survival bid impossible.

If Sheffield Wednesday do fall into administration, the focus would now be on ensuring that the next steps can be put in place to save the club, as this situation is becoming a grim occurrence now. The likes of Morecambe and Bolton Wanderers were saved from such awful ownership at the eleventh hour, but on the other side of the coin, the likes of Bury and Macclesfield Town suffered expulsion.

The hope will be that the Owls can start afresh under new ownership in the EFL, and not in the depths of non-league.