Sheffield Wednesday could fall victim to another bad owner before new regulations arrive | OneFootball

Football clubs remain vulnerable to potentially unsuitable owners despite impending reforms

Reports have emerged that Genevra Associates are actively pursuing ownership of Sheffield Wednesday, presenting a potential ownership transition that epitomises the current vulnerabilities in football club governance.

The prospective acquisition arrives at a critical moment for a club that has already endured years of challenging ownership under Dejphon Chansiri, whose controversial tenure highlights the systemic failures in protecting football clubs from destructive management.

Chansiri's ownership provides a stark illustration of prolonged mismanagement.

When he took control, he promised to return Sheffield Wednesday to the Premier League within two years - marking the club's 150th anniversary in 2017. Instead, the club has experienced the opposite trajectory, spending more time in League One and suffering significant financial setbacks.

The owner's recent comments at a fans' forum were particularly telling, effectively challenging supporters to find a buyer if they want him to sell - a remarkable abdication of ownership responsibility.

The club's financial struggles are not merely a matter of sporting performance. In 2018, financial fair play violations led to a points deduction and transfer embargo, a punishment that ultimately contributed to the club's relegation.

This pattern of mismanagement has eroded fan trust and threatened the very sustainability of the club, transforming what should be a cherished community institution into a financial liability.

The case of Genevra Associates provides a compelling illustration of the existing systemic weaknesses. With a track record that includes an attempted acquisition of Reading FC and a stake in Manchester United, the group's potential ownership of Sheffield Wednesday raises significant concerns.

Most critically, Talal Al Hammad - a key figure in Genevra Associates - represents a particularly troubling ownership archetype.

The Destructive Pattern of Mismanaged Ownership

Al Hammad's history with Wigan Athletic reveals the depths of potential ownership failures. In 2020, he oversaw the club's dramatic descent into administration, refusing to invest further in a struggling institution.

The consequences were severe: Wigan were subsequently docked points for failing to pay player wages, with the club starting the 2023-24 season on minus eight points - a direct result of his financial mismanagement.

The existing EFL owners' and directors' test appears fundamentally flawed. Under current regulations, a potential owner can have one insolvency event and still be considered acceptable.

This low bar fails to protect football clubs from potentially destructive ownership strategies.

The current test's primary disqualifying criterion allows an owner with a history of financial mismanagement to potentially acquire another club, creating a dangerous cycle of potential financial instability.

The Promise of Future Regulatory Intervention

The forthcoming Independent Football Regulator represents a significant step towards meaningful protection.

The proposed regulatory framework introduces three critical elements for the Owners and Directors Test: a comprehensive fitness test, a source of wealth examination, and a requirement for robust financial planning. These measures represent a marked improvement over the current system.

Crucially, the new regulatory body will possess powers to not only assess prospective owners but also examine incumbent ownership. The ability to disqualify an owner or director for a specified or indefinite period addresses a long-standing gap in football governance.

The fundamental question remains: why has such a mechanism not been standard practice within the EFL?

The proposed regulations signify a progressive approach to protecting football clubs as community assets. By mandating thorough assessments of potential owners' honesty, integrity, financial soundness, and competence, the IFR aims to prevent the recurring narrative of clubs being casualties of mismanagement.

For Sheffield Wednesday and countless other clubs, this regulatory evolution cannot come soon enough. The current ownership landscape remains a potential minefield, where clubs' futures can be compromised by individuals more interested in financial manipulation than sporting integrity.