EFL Concern Mounts Over Sheffield Wednesday's Future Amid Deepening Crisis

The English Football League (EFL) is increasingly concerned about the future of Sheffield Wednesday and the club's ability to fulfil its Championship fixtures, BBC Sport understands. The Owls are grappling with a deepening financial crisis under the ownership of Dejphon Chansiri, characterised by late payments to HMRC, repeated failures to pay player and staff wages, and escalating debts.

The situation has deteriorated further this week with the departure of several first-team players exercising their rights to terminate their contracts due to unpaid wages. Manager Danny Rohl has also left the club. Adding to the turmoil, the North Stand of Hillsborough stadium has been closed over safety concerns. With the Championship season scheduled to commence on August 10th, the club faces the daunting prospect of fielding a competitive team with a severely depleted squad.

Players Refusing to Play Amid Financial Uncertainty

Further details obtained by BBC Sport reveal the extent of the crisis:

Staff members are reportedly struggling to meet their financial obligations due to persistent delays in salary payments. Players are refusing to participate, leading to the cancellation of a pre-season friendly against Burnley and raising serious doubts about the viability of the opening league fixture against Leicester City. Players have allegedly been informed they must personally cover the costs of hotel accommodation for upcoming away matches.

An anonymous Sheffield Wednesday player described a climate of uncertainty and a lack of communication from the club's leadership, stating that players have been left "in the dark" regarding their future.

Exodus of Players Looms

Wages were paid late in March, May, and June, and players were recently notified of further delays to July's payments. Under EFL regulations, players are entitled to terminate their contracts with immediate effect if they experience late payment of wages in two consecutive months.

English full-back Max Lowe is understood to be the latest player to exercise this option, with multiple other players contemplating similar action. While the club's website lists 16 senior players, Lowe's impending departure, coupled with the expected exit of former captain Barry Bannan (whose contract expired this summer), further diminishes the squad's depth.

Adding to the club's woes, Sheffield Wednesday are currently subject to a transfer embargo, preventing them from signing players in the next three transfer windows due to outstanding payments owed to other clubs.

EFL and PFA Interventions

The EFL charged the club and Chansiri in early June with breaching regulations regarding the non-payment of wages. These cases are currently under review, with written submissions still being processed. Sheffield Wednesday has been contacted for comment but has yet to respond.

Maheta Molango, the head of the Professional Footballers' Association (PFA), has described the club's situation as "shocking" and "not tolerable." The PFA is providing support to Sheffield Wednesday players, advising them on their legal and contractual rights and exploring available recourse in the event of breaches.

Chansiri's Tenure Under Scrutiny

Chansiri, who purchased Sheffield Wednesday from Milan Mandaric in 2015 for £37.5 million, has faced increasing criticism from fans in recent years, with many calling for him to sell the club. In June, Chansiri claimed to have rejected two bids for the club, valued at £30 million and £40 million, respectively.

He stated: "I take full responsibility for being unable to fulfil my current obligations, but a further obligation I have is to ensure that if the club is sold, it is sold to the right people with the right credentials who can sustain Sheffield Wednesday and take the club forward."

Clive Betts, the Member of Parliament for Sheffield South East and a lifelong Wednesday fan, has accused Chansiri of holding the club "hostage." He added: "He must accept that he needs to sell Wednesday to prevent the complete collapse of the club… we as fans deserve better."

In 2023, Chansiri told disgruntled supporters they had "no right to ask me to leave." The Sheffield Wednesday Fans' Trust recently issued a statement accusing Chansiri of "killing the joy of supporting a football club for tens of thousands of people" and urged him to "stop blaming others and take responsibility."

Expert Analysis: A Cautionary Tale of Financial Mismanagement

Financial expert Kieran Maguire, a lecturer in football finance at the University of Liverpool, commented on the situation: "Sheffield Wednesday's predicament highlights the dangers of unsustainable spending and poor financial planning in football. Chansiri's initial investment raised expectations, but a failure to manage costs effectively and generate sufficient revenue has led to this crisis. The club's reliance on owner funding, without a viable long-term strategy, has proven to be a recipe for disaster."

Historical Context: Parallels to Past Financial Troubles

Sheffield Wednesday's current crisis echoes previous instances of financial instability in English football. Clubs such as Portsmouth and Leeds United have faced similar challenges, demonstrating the precarious nature of the sport's finances and the importance of prudent management. The EFL's regulations are designed to prevent such situations, but their effectiveness is contingent on clubs adhering to the rules and operating responsibly. The outcome of the EFL's investigation into Sheffield Wednesday's finances will be crucial in determining the club's future.

Hillsborough's North Stand Closure

This week, Sheffield City Council issued a prohibition notice for Hillsborough Stadium in respect of the North Stand, preventing spectators from entering the stand until necessary renovation work is completed. The club was informed during recent Safety Advisory Group meetings that the safety certificate for the North Stand would not be renewed without the required improvements.