Promotion fixed in Mandaric's sights as Irvine waits for cash

The prospective new owner of the club said he was determined to do everything possible to get the Owls out of League One this season as more financial details emerged about the Hillsborough takeover.

Mandaric said: "I need to get my feet into the water at Hillsborough but I would expect it would need between 5m and 6m to pay creditors, pay taxes, keep the organisation running and to support the manager.

"It's crucial that we do everything we can to get out of League One this season.

"I've indicated to the manager that he will get support and to try not to lose too many points between now and January.

"He will have proper support. He's done very well, only two points off the automatic promotion places, but we don't want to take chances come January.

"I want to see some security. I want to be absolutely sure – or as far as it is possible in football. I want to give the manager the support to get the quality to get out of League One."

Mandaric said in an interview yesterday that it was the passion of the Owls fans that had convinced him to step in and buy the club.

"The main attraction was looking for a challenge somewhere where I'm really needed and wanted," he said.

"When I saw the passion of the people, how much the club means to them and their desire for somebody to come and sort it out that was one of the main reasons (for buying the club)."

Mandaric is initially 'buying' the club's 24m debt from the Co-operative Bank for up to 7m but the money will not remain as a debt to the new owner and will instead be rolled over into equity to ensure the club begins a debt-free future.

The takeover proposal sent out to shareholders had raised eyebrows among some supporters as it refers to the bank's debt being 'novated' or transferred to Mandaric.

But David Hull, the lawyer finalising the deal for Mandaric, confirmed the 24m debt will be turned into equity – new shares – and that money loaned to pay off tax debts will be treated the same way.

The first of those debts, a VAT bill of around 300,000, has already been paid by the former Leicester City owner ahead of a High Court hearing over a winding-up petition due to be heard yesterday.

Outstanding PAYE of over 1m, the subject of a separate winding-up petition, will also be paid by Mandaric whose takeover is due to be confirmed at an extraordinary meeting of shareholders on December 14. It has also emerged that the Co-operative Bank is not receiving the whole 7m it agreed to accept for its outstanding debt up front. Proportions will only be paid on promotion to the Championship and the Premier League.

And more detail has emerged on the payments to five loan-note holders who will receive a total of 550,000, spread out proportionate to money owed, if the Owls reach the Premier League by 2021.

The sixth loan-note holder – former chairman Dave Allen – will receive 750,000 when the takeover is completed and a further 750,000 if top-flight football returns to Hillsborough by 2021.

The proposal to shareholders states Sheffield Wednesday plc, the parent company, is likely to be wound-up once the football club has been sold to Mandaric.

A simple majority of votes cast at the EGM is all Mandaric needs to secure sole ownership of the football club and with all the major shareholders already pledging support the deal is already effectively done.

It will mean that full control of the club goes to Mandaric and the current power of minority shareholders, including fans' group Wednesdayite, to hold the board to account through annual or extraordinary general meetings will disappear.

A debt-free fresh start will give the Owls a tremendous opportunity to progess up the leagues with the only potential problem on the horizon being outstanding charges of tax evasion against Mandaric, which he denies, which are due to be heard next year.

MANDARIC: HOW THE FIGURES ADD UP

New Sheffield Wednesday owner expects to invest between 5m and 6m during the current season

Mandaric will be acquiring the club's 24m debt to the Co-operative Bank who 'sold' it for up to 7m

New owner will convert the 24m debt into equity to ensure debt-free start to new reign

Co-operative Bank will only get full 7m on promotion to the Premier League

Loan-note holders, apart from Dave Allen, will only receive a total of 550,000 on promotion to Premier League

Former chairman Allen receives 750,000 now and 750,000

if Owls return to the

top flight.