The club's board issued a statement that reaffirmed that any prospective takeover bid would need to include an initial investment of at least £5m.

Chicago-based Club 9 Sports, which recently joined forces with local boxing promoter Dennis Hobson, continues to contend it is in the running to take control with a proposed £3m bid, plus the promise of another £2m in a year's time.

But last night's statement poured cold water on the bid and suggested it lacked substance.

The statement did not refer to Wednesday's outstanding £550,000 tax debt but it is understood that arrangements to pay the £300,000 PAYE element are close to conclusion which would consequently enable a transfer embargo to be lifted.

The Owls are using the proceeds of the sale of goalkeeper Lee Grant for around £1m to Burnley earlier this week to pay HM Revenue and Customs (HMRC). The club intends to negotiate a staged settlement of the remaining £250,000 VAT debt ahead of a court hearing, set for August 11, on a winding up petition issued by HMRC.

The board's statement said: "It is the duty of the Board to protect the long term interests of the Football Club. We recognise that investment is needed but will not let anybody take control of Sheffield Wednesday, unless they have the ability to meet the Club's financial requirements in the short, medium and long term. This is a position that is supported by the Co-operative Bank.

"We have been approached by a number of interested parties and it is true to say that we have been made offers that fall short of the conditions that have been set. Club 9 Sports LLC is one such party and while they continue to make noise in the media, we focus on negotiations with credible long term investment partners.

"The Co-operative Bank is playing an active role in these other discussions and remains fully supportive of the stance taken by the Board."