Mike Ashley ‘weighing up next steps’ to seal Sheffield Wednesday takeover

Mike Ashley, the former owner of Newcastle United, is one of the parties interested in taking up Sheffield Wednesday and is currently considering the next steps to complete the transaction.

But that chapter appears to be behind the Yorkshire team, after the club was placed into administration this week, giving administrators the authority to find a solution for creditors, either through new owners or liquidation.

Fans are returning to Hillsborough Stadium and the club shop after a period of abstention to protest Chansiri, hoping to avoid the latter. Fortunately, there are hopeful indicators.

Mike Ashley is preparing to put his head into the ring for Sheffield Wednesday

According to the Daily Mail, former Magpies owner Ashley is among those exploring a bid for the club, and he is currently ‘weighing up next actions’ to secure a takeover.

He was a divisive figure at St James’ Park, with his propensity for running a tight financial ship sometimes interpreted as a lack of ambition for a club that, properly, considers itself one of England’s largest.

However, financial restraint may be the order of the day at Hillsborough, as Chansiri’s ownership has left almost everyone connected to the club owing money in some way, ultimately preventing the Owls from investing significantly in new players.

Interested parties, such as Ashley, will be required to provide proof of funds before being invited to take a closer look at the club’s financial situation, which should be no problem for the 61-year-old, who sold Newcastle for £300 million in 2021 and was estimated to have a net worth of £3.12 billion earlier this year, according to the Daily Mail.

No shortage of Sheffield Wednesday bidders.
According to a BBC story, Ashley’s fascination is not unique.

Joint administrator Kris Wigfield, who is leading the search for new ownership to replace Chansiri, revealed that “four or five” potential bids had already been lined up, with Ashley most likely among them.

“As always, you get a lot of interested parties that probably aren’t going to meet the criteria,” Wigfield admitted. “However, based on the numerous queries we’ve received, we believe there are already four or five serious candidates.

“There are two criteria that new owners basically need to satisfy to then open dialogue and there to be an opportunity where they can make an offer.”

These two criteria include demonstrating their ability to make the club viable and passing the EFL’s fit and proper persons test.

It is unclear who the other realistic interested parties are, but a person like Ashley, who has been involved in top-level football for more than a decade, should be experienced enough to overcome those obstacles.

The financial situation facing Sheffield Wednesday

Ashley, or anybody else interested in owning Wednesday, has a lot of work ahead of them, first getting a winning bid in and then dealing with the club’s various problems.

The first of these issues will be outstanding debtors, among whom Chansiri is awkwardly included.

According to Daily Mail journalist Mike Keegan, kit suppliers Macron and HMRC are still waiting for payment, with their £1 million debt being the final straw that sparked the administration.

There is also an estimated £200,000 outstanding to the EFL, as well as £800,000 in pay due this week.

That’s before we look at the sporting predicament, with a transfer embargo in effect until 2027 and the administration causing a 12-point deduction, leaving them on -6, meaning they’ll need to close a 16-point gap on Blackburn Rovers to have any chance of surviving.

Realistically, relegation to League One appears unavoidable, thus any potential owner must factor in the reduced revenue opportunities that will result.

Nonetheless, Ashley is a master in distressed assets, and while he has few supporters in Newcastle, he may become a hero in Sheffield if he can stabilize the Owls.