Finance expert issues new administration warning to Sheffield Wednesday | OneFootball

Sheffield Wednesday are at risk of going into administration due to their financial issues

Football finance expert Stefan Borson has outlined the significance of receiving a winding-up petition at Sheffield Wednesday.

The Owls are reportedly at risk of going into administration due to an unpaid bill to HMRC worth around £1 million.

However, it has been claimed that owner Dejphon Chansiri is seeking to negotiate terms over the repayment of that fee in order to avoid the club going into administration.

The Championship side would immediately receive a points deduction if they were to go into administration, which would be a huge blow to their already precarious position in the table.

Henrik Pedersen’s side have struggled for form this season, with the Dane left with a very small and inexperienced squad due to these financial issues.

Stefan Borson’s winding-up petition warning to Sheffield Wednesday

Borson has claimed that going into administration still requires finding a buyer for the club, and that the points deduction that will follow could make that tougher.

He’s warned that further points penalties could follow if other creditors aren’t satisfied, which could again make it even harder to find someone willing to fund the day-to-day running of the Championship side.

“If there is no money in the club and they have no access to money from either the owner or selling assets, then of course that’s how you run out of cash and that’s how you end up in administration,” said Borson, via Football Insider.

“But it’s not going to solve the issue anyway.

“You have still got to find a buyer.

“It’s got to find somebody that’s going to fund the situation.

“If it does go into administration, you’ve got the points deduction.

“You’ve got issues with further points deductions if you can’t settle the creditors in a satisfactory way.

“It’s not good news for anybody for there to be a winding-up petition or for there to be threats of administration.”

Sheffield Wednesday’s relegation threat

If points deductions are handed out, then Sheffield Wednesday will all but be relegated already.

The Owls are in the bottom three regardless, and have a very thin squad that they can’t improve on due to registration embargoes placed on them by the EFL for breaching financial rules.

Any new owner coming in will have a lot of work on their hands to turn things around at Hillsborough, and it could be years before everything is resolved, depending on the manner of the sale.

Pedersen’s side are currently bottom of the table with six points from 10 games, and the longer Chansiri goes without the selling the tougher it could become for Sheffield Wednesday to recover in the long run.

Administration isn’t a solution to Sheffield Wednesday’s problems

Going into administration won’t be a solution for Sheffield Wednesday’s problems, and puts the club at risk of going into liquidation.

Chansiri reportedly set a £100 million asking price earlier in the year, which was a ludicrous sum to ask for a club suffering from their financial issues, so it’s no surprise he’s still hanging around.

The Thai businessman is doing so much harm to the Owls, and the sooner he can sell the better it will be for everyone.

But it’s difficult to see an immediate light at the end of the tunnel right now, as he is proving too stubborn to just walk away by selling at a reasonable cost.