Investment in Sheffield Wednesday put on hold until future is known

A Chicago-based company, Club 9 Sports, have been in talks with the Owls for the last three months but a deal is being delayed by uncertainty over the club's league status.

With 14 games to play, the Owls – who visit fellow strugglers Reading tomorrow – are only one point clear of the Championship relegation zone.

Dropping into League One would significantly reduce the valuation of the club but, significantly, Strafford believes it will not deter Club 9 Sports from seeking to invest.

News that fresh money is unlikely to materialise before the outcome of the relegation battle is known was revealed by Strafford at a meeting with supporters last night at Hillsborough.

"There are no guarantees but getting resolution of what division we are in next year will be a big catalyst," he said, when pressed on the delay over completion.

"Two parties have to agree a valuation and that is very difficult to do when you have two sets of numbers – one, in the Championship or, two, in League One," he added.

"While ever there is a situation where we could be relegated, they are running with two sets of numbers and find it difficult to agree. What will be different (if relegated) is what the deal costs. Thankfully, they haven't walked away – but things haven't moved quickly because of where we are from a league position perspective."

Wednesday's biggest creditors, the Co-Operative Bank, are owed the majority of the club's overall 22m debt and are leading the talks with Club 9 Sports.

Strafford said: "The process between Club 9 Sports and the bank is running slowly and will probably continue to do so. There is no way we can make them agree (more quickly) which is frustrating – but I take comfort from the fact that we have done all we can and kept unfit parties away from the club."

Commenting on the issues which have dragged other clubs into the national spotlight, Strafford said: "We don't want to go down the road of Ridsdale and Leeds or Sheffield Wednesday and Charterhouse (the venture capitalists who had control of the club when it slipped out of the Premier League 10 years ago).

"We are very fortunate to have a process that doesn't allow people like Geoff Sheard (the businessman who led a failed bid to buy Wednesday on behalf of a mystery consortium two years ago) to come anywhere near this place, or people who sell your assets, put you in massive debt, and then sell you on," he said.

"We know how to sort the wheat from the chaff."

Strafford revealed that the Owls pay only 550,000 a year to maintain their existing level of debt and poured cold water on the idea that the club may 'need' to go into administration to escape its financial headaches.

He also revealed that loan note holders, who include former chairman Dave Allen, were not entitled to repayment unless the money owed to the Co-Operative Bank falls below 14m.

Reflecting on his first 12 months at the helm, Strafford said: "A lot of clubs have talked about having massive investment in the last few years and it has turned into massive financial problems. Other clubs have lived beyond their means.

"We feel we have made our club stronger where it was weak before. I am proud of what we have achieved and I am looking forward to continuing that journey with or without the help of Club 9 or anyone else."

On the team's performance, he said: "I am disappointed with where we are in the division and it is hugely important to stay in the Championship in terms of budgets.

"But we are a stronger club to be able to deal with the situation we are in."

The 'Forward Together – One Year On' meeting was organised by supporters group Wednesdayite and attended by around 100 people.

Wednesdayite chairman John Gath said: "I would rather this club be in the situation it is now than where it was 18 months ago and we are pleased with the direction that Lee is taking the club, especially in terms of the community and its links with the Children's Hospital."

He added: "Wednesdayite used to be regarded as troublemakers (by Dave Allen) but now we have people grumbling that we are too close to the club. At least, we now have the ability to ask questions and get answers."

John Prutch, the managing partner of Club 9 Sports, released a statement last month confirming interest in the Owls but is not expected to comment again until a deal is done.