Everything the EFL would do to Sheffield Wednesday if they go into administration | OneFootball

Sheffield Wednesday could soon enter administration

Sheffield Wednesday have flirted with the possibility of going into administration recently.

There has been little to smile about around Hillsborough for much of 2025, largely due to owner Dejphon Chansiri’s financial mismanagement.

The Thai businessman has failed to pay his players on time for five of the last seven months, which is a period that has also seen key operators such as Michael Smith and Josh Windass exit the club for free.

Wednesday were placed under five embargoes for this act of wrongdoing, which limited their transfer business to just the loan signings of Ethan Horvath and Harry Amass.

It was recently revealed by the Daily Mail that the Owls are close to being hit with a winding-up petition, which could force Chansiri to put the club into administration.

BBC Sport have reported that Wednesday owes HMRC £1 million and if the Thai businessman cannot satisfy these demands, he will be forced to turn to administration.

Amid this news, Football League World has taken a look at what will happen if Sheffield Wednesday goes into administration.

Everything that could happen to Sheffield Wednesday in administration - Derby a blueprint to look at

To understand what could happen to Wednesday if they go into administration, Derby County’s example from 2021 must first be considered.

The Rams went into administration in September of that year, after accumulating losses of around £20 million during the Covid period.

County lost £14.7m in 2016 and £7.9m in 2017. They were heading for further losses the following year, which would have breached the EFL's profit and sustainability rules, allowing a cumulative £39m loss over three years, until owner Mel Morris bought Pride Park for £80 million.

Derby’s debts were between £50-70 million in 2021, and they also owed HMRC £20 million.

This immediately saw them hit with a 12-point penalty, which would likely be the same fate Wednesday would suffer if they went into administration. That would be applied to this season’s tally if administration happens before the fourth Thursday in March.

The Owls owe HMRC a much lower figure, but going into administration would still see them hit with the same punishment.

The Rams were also handed a further nine-point deduction for accounting breaches, but it doesn’t seem like Wednesday have that same concern.

Administration would also act as a disqualifying event, which means that the EFL have enough power to force Chansiri into a sale and begin the search for a future owner themselves. If no buyer is found, Wednesday could face the possibility of liquidation.

Clubs are also placed under a transfer embargo whilst in administration, but Wednesday are already working under various sanctions, as is underlined by their lack of summer transfer business. The Steel City side’s day-to-day control would also move from Chansiri to an appointed administrator.

Sheffield Wednesday fans may take administration to force Dejphon Chansiri sale

The last thing any football supporter wants to hear is that their club is going into administration, especially if they are in the midst of a relegation battle.

A 12-point penalty at this stage in the season would surely confirm Wednesday’s drop to League One, but some supporters may be willing to take that pain.

Using Derby’s example once again, the Rams rebuilt in League One under new owner David Clowes and eventually worked their way back up to the second-tier in sustainable fashion.

Last summer saw the Pride Park outfit sign Patrick Agyemang for a fee that could rise to £7.3 million, which highlights just how good their current financial position is, just four years on from being placed in administration.

Wednesday supporters will take great heart from this example and hope the same can happen to them.

Relegation isn’t ideal, but it may represent a future at Hillsborough without Chansiri. From there, under new ownership, the Owls could soon climb back into the Championship and enjoy second-tier football without an overwhelming amount of issues behind the scenes.