Why have Sheffield Wednesday administrators been warned not to sell the club within the next 21 days

The EFL has advised Sheffield Wednesday’s administrators not to sell the club within the next 21 days, albeit these guidelines may be eased if the selling process moves more quickly than planned.

After months of off-field and financial turmoil, Dejphon Chansiri’s tempestuous decade-long reign at Wednesday ended on Friday when he placed the club and the business through which he owns Hillsborough Stadium into administration.

The Owls were hit with an immediate 12-point deduction after entering administration, and they currently sit bottom of the Championship table on minus six points, a massive 16 points from safety, but while relegation to League One is now almost certain, Chansiri’s departure has been met with celebration by fans.

Following a boycott of home games during the first few months of the season, Wednesday fans returned in force for Saturday’s 2-1 defeat against Oxford United, with 27,261 in attendance, while over £500,000 has been spent on tickets and merchandise in recent days as supporters respond to the administrators’ call to help the club financially.

Kris Wigfield, joint-administrator, announced on Monday morning that there are “already four or five interested parties that look like the real deal,” and he expressed hope that a sale of the club might be completed by the end of the year.

While it is unclear which parties Wigfield is referring to, former Crystal Palace co-owner John Textor is still believed to be interested in purchasing the Owls, despite reportedly making a £400 million bid for Premier League club Wolverhampton Wanderers, and former Newcastle United manager Mike Ashley is also said to be keeping an eye on the situation.

Sky Sports reporter delivers an update on Sheffield Wednesday’s takeover timeline.

As he provided the most recent update on the situation on Wednesday, Sky Sports reporter Rob Dorsett revealed that, while the EFL would normally ask administrators not to sell a club within the first 21 days of going into administration, they could potentially change the rules for the Owls, and that the fact that interested parties can negotiate for the club and stadium together could speed up the sale.

“The EFL normally tells administrators not to sell the club too quickly,” Dorsett stated on Sky Sports.

“They have guidelines that state not to sell the club within the first 21 days of entering into administration, and that is to try and prevent companies lining up to buy a football club when it is in trouble, acquiring it on the cheap, if you will.

“The EFL does not want to encourage that, but I have been told that the EFL is willing to bend the regulations slightly; they are not hard and fast laws.

“Actually, they and the administration recognize the value of a swift adjustment here.

“The other interesting point is that Chansiri placed the company that owns the stadium into administration on Friday, which makes it much easier for someone looking to buy the club because they can negotiate with the same administrator for both the football club and the stadium.

“That was not a luxury that Derby County enjoyed in 2022.

“That’s why theirs took so long: Mel Morris still owned Pride Park while various interested parties attempted to buy the football club.

“There is anticipation, if not expectation, that Sheffield Wednesday will be sold very swiftly.

“They have already got four or five serious bidders that are interested, we’re told.”

Sheffield Wednesday should not hasten the sale process following Dejphon Chansiri’s nightmare.

Wednesday fans obviously want to see their team under new ownership as quickly as possible, but the administrators must take the time necessary to locate the right buyer.

Any new owner would need to demonstrate that they have the wherewithal to keep the club financially sustainable for the next few years, as well as that they can pass the EFL’s fit and proper people test, thus due diligence must be performed to ensure that all of these criteria are met.

However, it appears that both the administrators and the EFL want a takeover completed fast, and with a number of reputable parties already expressing interest, a deal might be concluded by the end of the year.