Why Middle Eastern group have withdrawn from Sheffield Wednesday takeover process - 2 reasons mentioned | OneFootball

A Middle Eastern group have pulled out of the running to take over Sheffield Wednesday ahead of Friday's deadline for bids to be submitted.

Friday's deadline for interested parties to submit their first bids to buy Sheffield Wednesday is looming, but an unnamed Middle Eastern group will reportedly not be among those placing an offer.

The race to take over Wednesday has been hotting up since former owner Dejphon Chansiri put the club and the company through which he owned the stadium into administration last month, bringing his turbulent decade-long tenure at Hillsborough to an end.

The Owls were deducted 12 points after entering administration, meaning that it is almost certain they will be a League One club next season, but despite that, there has been no shortage of interest in purchasing the South Yorkshire outfit.

Former Crystal Palace co-owner John Textor, ex-Newcastle United chief Mike Ashley and US billionaire John McEvoy are among those who have been linked with a takeover of Wednesday in recent weeks, and as many as 11 parties are believed to have provided proof of funds of £50 million to the club's administrators.

Any interested parties will have to submit their initial bids for the Owls by Friday, and with less than 24 hours to go until the deadline, more details have been revealed about exactly who could be set to table offers.

Middle Eastern group withdraw from Sheffield Wednesday takeover contention

Parties wishing to make a bid for Wednesday will have to submit a Letter of Intent to Wednesday's administrators by Friday, along with further information about the source of their funding, although any offers made at this stage are not legally binding.

According to The i Paper, Ashley and McEvoy are set to be among three or four bidders for the Owls, but a mystery Middle Eastern group have ruled themselves out of the running to take over at Hillsborough.

The Middle Eastern group, who were working with a London-based advisory firm, are said to have been deterred by the expected competitiveness of the bidding process, as well as holding reservations about how much it would cost to run the club over the coming years.

Any sale price is expected to include the cost of settling Wednesday's debts, including the money owed to former owner Chansiri, who will receive just £15.6 million of the £62.5 million he is owed due to EFL regulations, which rule that creditors are entitled to 25p in the pound immediately or 35p in the pound spread over three years.

However, the cost of a takeover deal will only be the start of the spending for the Owls' incoming owner, with the significant renovation work needed on Hillsborough stadium expected to be one of the biggest outlays, and it has been estimated that it could take around £100 million to keep the club running as a going concern for the next three years, which appears to have put off the Middle Eastern group from pursuing a deal.

It has always been acknowledged that whoever takes over Wednesday is going to need to have deep pockets, but with the club's total running costs expected to reach £100 million over the next three years, the financial burden any new owner will inherit is becoming clear.

With that in mind, it is no surprise that some interested parties who have been given access to the club's accounts and data room in recent weeks have decided against making formal offers, but the fact three or four bids are still expected shows there are some wealthy individuals who remain keen to get their hands on the Owls.

Ashley and McEvoy are two of the names who are expected to table offers for Wednesday by Friday's deadline, and with both possessing significant wealth and having previous sports experience, it should be reassuring to supporters that they are still in the running.