Mystery investor emerges as Owls hope for debt salvation

CASH-strapped Sheffield Wednesday are due to hold talks over a fresh takeover bid next week, hoping that new investment will solve the debt crisis that led to a High Court winding-up petition.

The Yorkshire Post has learnt that club officials plan to meet advisors of a so far unnamed American party in the next few days.

The identity of the would-be investor or investors has been kept a closely guarded secret but the club believes their unwillingness to court publicity – in contrast with other recent suitors – underlines the seriousness of the interest.

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New money is desperately needed at Hillsborough with Wednesday currently due to appear in the High Court on August 11 after HM Revenue and Customs (HMRC) served a winding up petition over an unpaid 550,000 tax bill.

The club's prized goalkeeper, Lee Grant, is likely to be sold before the court date with the money going to pay the tax debt.

A transfer embargo has been placed on the club in the light of the winding-up petition but player sales are still permitted.

Wednesday last night turned down a third bid from Burnley for Grant, with the club hoping to secure nearly 2m for the former England under-21 international.

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Burnley's bids are believed to be nearer half that amount and more hard bargaining may prove difficult despite assurances from club manager Alan Irvine.

He said: "Every player has a value but I don't want to lose Lee and the club is not looking to sell. We are not desperate for cash and, if anyone thinks we do need to sell prize assets cheaply, they are going to be disappointed."

Wednesday's total debts were about 25m in the last published set of accounts, including 20m owed to the Co-operative Bank but the amount increased after a disastrous season that ended with the Owls being relegated from the Championship.

The club said it delayed paying the tax bill in agreement with its bank as it had virtually run out of cash during the close season.

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Wednesday appear to be playing a game of "cat and mouse" with HMRC to try to get through immediate cash flow problems and the club, which insists the bill will be paid before August 11, yesterday issued a statement critical of the taxman's decision to get tough over the unpaid bill.

It said: "We have been involved in dialogue with HMRC for a number of weeks. As such we have been somewhat surprised and disappointed by their decision to seek a winding up order at this time.

"We understand that HMRC is taking a tougher line in general with football clubs, but feel their actions are disproportionate and will raise unnecessary speculation as to the financial position of the club."

The Co-operative Bank, which is understood to have already held talks with the prospective investors, issued its own statement expressing "disappointment" over the winding up order.

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It added: "At present we are continuing to enter into dialogue with our advisers, Sheffield Wednesday Football Club and potential investors to explore solutions which will allow the club to operate on a sound and secure financial footing for the future."

Wednesday are currently reliant on the goodwill of the Co-operative to help them through the upcoming season when the club anticipates a shortfall of up to 3m in its budget.

The club has entertained several takeover bids that came to nothing over the last few years, the most recent from a Chicago-based group called Club 9 Sports which fizzled out two months ago due to a lack of funding.

Despite the series of false dawns, there is quiet confidence the latest interest has more substance.