The exact reason why Sheffield Wednesday are in administration has been confirmed | OneFootball

Failed takeover talks and a drop in matchday revenue are among the reasons why Sheffield Wednesday have entered administration.

It has been revealed that failed talks over a potential takeover are one of the main reasons why Sheffield Wednesday have entered administration.

After a nightmare few months that saw the club plunged into financial crisis, owner Dejphon Chansiri has taken the decision to place Wednesday into administration, with their fate being officially confirmed on Friday.

In a statement released by the club, the Owls state that the club went into administration after "significant efforts to agree a sale to a credible future custodian in recent weeks which unfortunately could not be concluded and amid rising pressure from creditors".

A number of interested parties are believed to have held talks about a possible takeover deal in recent months, but no agreement could be reached with Chansiri, leaving him with little option but to put the club into administration, particularly with the threat of an imminent winding-up petition looming due to an outstanding £1 million debt.

Wednesday supporters have staged frequent protests against Chansiri this season, including boycotting games and refusing to purchase food, drink and merchandise inside the ground, and with average home attendances falling by around 35% from last season from over 26,000 to just over 17,000, the drop in matchday revenue has also contributed to the club's current financial predicament.

As Chansiri-owned Hillsborough Stadium separate from the club through a company called Sheffield 3 Limited, there were some fears that he could retain control of the ground, but the Owls have confirmed that the stadium company has also been placed into administration, allowing the club and the stadium to be marketed together.

In accordance with their regulations, the EFL have announced that Wednesday have been hit with an automatic 12-point deduction for entering administration, and while they were already bottom of the Championship table, they now sit on minus six points and are a huge 15 points from safety.

Sheffield Wednesday release statement after entering administration

Begbies Trainor have been brought in to oversee the administration process at Wednesday, with Julian Pitts, Paul Stanley and Owls supporter Kris Wigfield being appointed as joint-administrators.

In the statement confirming that the Owls had gone into administration, Wigfield outlined some of the reasons why Chansiri has decided to take this course of action, as well as revealing the immediate priorities of the joint-administrators.

"The joint administrators have taken over the running of the club with immediate effect to protect the interests of creditors, and to ensure Sheffield Wednesday can continue operating while we seek a new owner as swiftly as possible," Wigfield said in a statement on the club's official website.

"Like many football clubs, it has been trading at a significant loss for several years, with those losses historically funded by the former owner Mr Chansiri.

"Due to increased financial pressure on the club, the owner has chosen to place the club and the stadium company into administration which will enable us to market the club and the stadium as a whole, which is great news for supporters of the club."

After Wednesday fans boycotted the midweek game against Middlesbrough in large numbers, Wigfield urged supporters to return to Hillsborough and "purchase tickets, merchandise, pies and pints", with the additional income needed to help "stabilise the club and support the loyal players and staff while we secure a suitable buyer".

Stanley echoed Wigfield's comments, stating that the increased matchday revenue would enable the club to "cover its day-to-day costs and move towards a viable sale to a new ownership capable of restoring long-term stability", and he stressed that the joint-administrations will work with the Supporters Trust "to ensure that the club is placed in the hands of a suitably-qualified and well-financed new owner".

Sheffield Wednesday supporters should be optimistic as Dejphon Chansiri nightmare nears end

Of course, administration is not a cause for celebration, and the 12-point deduction will almost certainly result in Wednesday being relegated to League One this season, but with Chansiri effectively no longer in control, Owls supporters have reason to be optimistic for the future.

Less than an hour after the club were placed into administration, the seats bearing Chansiri's name in the North Stand were already being removed, and the reference to him in the statement as a "former owner" indicates that his reign has come to an end, which is undoubtedly good news for the club, as is the fact that the stadium can be included in any takeover deal.

Wednesday will have to live with the legacy of Chansiri's mismanagement for some time, with a three-window transfer ban still in place, as well as five separate transfer embargoes, but with a new owner likely to be in charge within the next few months, the club's long-suffering supporters can start to look forward to what they hope will be a brighter future.