EFL ask Sheffield Wednesday to explain Hillsborough sale, claim reports

According to The Times, the English Football League has reportedly asked the Owls to explain why a £38 million profit for the sale of Hillsborough was detailed in their 2018 accounts when Land Registry documents date the purchase to almost 12 months later.

Wednesday are among a number of clubs under scrutiny for exploiting a loophole that has allowed them to remain compliant with the EFL’s Profit and Sustainability rules by essentially buying the stadium from themselves.

Derby County are also being investigated after it was revealed in the club’s latest accounts, for 2017-18 that the Rams had sold their ground for £80million to a company owned by chairman Mel Morris.

A deal was then done to lease the venue back to the club.

League rules state that clubs must not exceed a loss of £39m over a three-year period, with the matter regarding the ground sales is likely to be discussed at an EFL club’s meeting on Thursday.

Wednesday are not commenting on the fresh reports.

Back in July, Wednesday reported a pre-tax profit of £2.58million in their latest set of accounts, with figures also revealing that the club made £38.1m from the sale of their Hillsborough home.

The profit for the period from June 1, 2017 to July 31, 2018 – covering a 14-month set of accounts – contrasted with a big £20.8m loss for the previous season and a £9.8m loss in 2015-16.