Sky Sports journalist confirms Sheffield Wednesday takeover next steps after big David Storch news | OneFootball

David Storch has been given preferred bidder status by the Sheffield Wednesday administrators

Sheffield Wednesday are closing in on a new chapter following a tough period of administration.

The Owls avoided defeat for the first time this calendar year when they drew 1-1 with Watford at Hillsborough on Tuesday, in a clash which also marked Liam Palmer's 500th appearance for the South Yorkshire side.

Wednesday's administrators had been tasked with naming a new preferred bidder after a takeover deal put in place by James Bord's consortium collapsed.

Meanwhile, former Newcastle United owner Mike Ashley has been outbid in his attempts to buy Wednesday.

Sheffield Wednesday future becomes clearer as David Storch named as preferred bidder - Next steps outlined

Storch has been named as Wednesday's new preferred bidder, which gives Owls supporters significantly more clarity on their club's future than they had previously enjoyed.

Sky Sports' Rob Dorsett has revealed via X that, now that Storch has been given preferred bidder status, his consortium will now have exclusivity to complete a takeover.

The consortium is called Arise Capital Partners LLC, and is composed of David Storch, Michael Storch and Tom Costin.

As reported by the Sheffield Star, the group have provided a substantial deposit and proof of funds, which they wish to use to complete the proposed transaction and fund Wednesday going forward.

Meanwhile, according to The Athletic, Storch, who is an American businessman, will have to answer questions about a $55million settlement AAR Corp paid in 2024 to settle investigations by the Department of Justice and the Securities and Exchange Commission into violations of the Foreign Corrupt Practices Act.

That settlement in 2024 could prove to be a stumbling block when Wednesday's preferred bidders become subject to the EFL's Owners' and Directors' test (OADT).

The Independent Football Regulator is set to inherit the EFL's power to ratify takeovers by May.

Storch's lawyer, Keir Gordon, told The Athletic: "Mr Storch was chairman of AAR Corp when the company self-reported a potential wrongdoing by a rogue employee in 2019. The company cooperated with authorities and successfully resolved the matter in 2024.

"The US government was satisfied with the outcome and determined not to prosecute AAR Corp. We are satisfied that this is not an issue in relation to the EFL’s OADT process, but ultimately, as you are aware, it is for the EFL to determine this."

Wednesday are set to start next season's League One campaign with a 15-point deduction due to bids less than the amount required to pay creditors 25p in the £. They have already been docked 18 points this term thanks to the severe financial mismanagement of former owner Dejphon Chansiri.

Sheffield Wednesday supporters will hope David Storch developments finally mark the end of administration saga

The Owls have endured one of the toughest seasons in their history, which was highlighted when they were relegated to League One with a defeat to fierce rivals Sheffield United last month.

Wednesday supporters were previously given hope when Bord's consortium were given preferred bidder status, but eventually saw those hopes fade away.

Owls fans will now want to see Storch get his takeover across the line so that their club can finally begin moving in the right direction again.

The South Yorkshire outfit need their next owners to have as much time as possible to recruit a squad that is capable of giving them a fighting chance of League One survival next season, despite their incoming 15-point deduction.

Wednesday's current squad is down to bare bones, thanks to several exits over the last two transfer windows, including that of club legend Barry Bannan.