Chansiri counting the cost as Owls head deeper into red in bid for Premier League riches

DEJPHON CHANSIRI'S first full year in charge of Sheffield Wednesday saw losses more than double to £9.755m, the club's accounts have revealed.
Owls owner Dejphon ChansiriOwls owner Dejphon Chansiri
Owls owner Dejphon Chansiri

The Owls, who continue to comply with Financial Fair Play rules despite the hugely increased deficit, reached the Championship play-off final last season but missed out on promotion to Hull City at Wembley.

Thai businessman Chansiri, who bought the club in a £37.5m deal from Milan Mandaric in February 2015, appointed Carlos Carvalhal and oversaw significant investment in the squad that helped push the club’s wage bill from £11.885m in 2014-15 to £17.129m last season.

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This contributed to a £9.755m pre-tax loss, up from £4.483m in the previous financial year, despite turnover rising significantly by £7.074m to £22.003m on the back of the run to Wembley and increased commercial activity.

Match-day receipts contributed £16.345m to that turnover figure – up from £10.158m in 2014-15, when the Owls finished 13th in the Championship.

Wednesday’s loss complies with Championship Financial Fair Play rules, which were changed from the start of this season.

Under the new regulations, clubs can lose up to £13m per season over a three-year period that includes a financial projection for the current financial year if the owner injects equity – something that Chansiri has done. This is a significant increase on the previous permitted loss of £8m per annum.

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For the next assessment by the Football League – due to take place this month – financial figures for the 2014-15 and 2015-16 seasons will be taken into account along with the projected profit/loss for this term.

As the Owls have lost a combined £14.238m over the past two years, it will take a huge projected loss in the current campaign for the club to face possible sanctions from the Football League.

Wednesday’s accounts, released yesterday and covering the period to May 31 last year, also reveal the club has been loaned £17.677m by sole shareholder Chansiri.

The report does, though, state that the loan has “no set repayment or interest terms”, underlining the chairman’s commitment to a club he has ploughed further money into this season in the hope of reaching the Premier League. Chansiri also paid £916,667 to sponsor the club’s shirts and part of the stadium last term.

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Among the big-name arrivals during the period covered by the latest accounts were Fernando Forestieri, Gary Hooper and Barry Bannan, while Lucas Joao and Marco Matias moved to Hillsborough for significant fees from Portugal.

Wednesday finished in their highest position since being relegated from the Premier League in 2000.

Had Carvalhal’s side beaten Hull, whose wage bill in 2015-16 of around £30m contributed to a pre-tax loss of £20.6m for the East Riding club, the Owls would have benefited from a £100m-plus cash windfall.

Owner Chansiri has redoubled efforts to take the club up in its 150th anniversary year this season. Spending on transfers and wages, though, is not reflected in the latest accounts due to having taken place since the start of June last year.