As Sheffield Wednesday’s court deadline approaches on Wednesday, three potential bidders are expressing some interest in the club. The position has been complicated by the revelation that, as well as the £600,000 Wednesday owe in PAYE, the tax authorities issued a second winding-up order in October over VAT arrears of £300,000. The Co-operative Bank, the main creditor, consider they should been told about this earlier than they were.
As Sheffield Wednesday’s court deadline approaches on Wednesday, three potential bidders are expressing some interest in the club. The position has been complicated by the revelation that, as well as the £600,000 Wednesday owe in PAYE, the tax authorities issued a second winding-up order in October over VAT arrears of £300,000. The Co-operative Bank, the main creditor, consider they should been told about this earlier than they were.
The only possibility of an internal rescue would be with board member Mick Wright, a Sheffield steel boss who has £800,000 invested in the club. Ex-manager Chris Turner is still involved in a potential bid, despite the withdrawal of the man he originally represented, oil executive Kevin Mundie. Wealthy fan Spencer Fearn is believed to be in talks with a Swiss consortium. Then there is the somewhat controversial Milan Mandaric, looking for another challenge after selling to a Thai consortium at Leicester. Mandaric was formerly in charge of Portsmouth.
If an investor took charge now, the Co-op Bank is prepared to waive £13m of the debt. The club could be bought more cheaply if it went into administration, but it would then carry a 10 point penalty.
After three years of problems, a resolution is unlikely to be found in three days. It is possible that there could be a short-term prop-up deal that would satisfy Revenue and Customs for the time being. The underlying fundamentals of the club in terms of its stadium and support base are strong.