EFL decision could signal good news for Sheffield Wednesday

Owner Dejphon Chansiri, finance director John Redgate and former chief executive Katrien Meire were the three individuals charged alongside the club in November over the controversial sale of Hillsborough to Chansiri, who then leased it back.

While the case against the Owls is still going through arbitration, the announcement late on Friday that charges against the trio had been dropped must give them encouragement.

The Championship club said from the start they would “vigorously contest” what they see as “unlawful” charges, and called the news: “a recognition of the strength of the evidence that the club has filed before league arbitration panels, which demonstrated that there was no proper basis for the charges.”

The Owls exploited a loophole in the rules which allowed them to sell their ground so as not to break “profit and sustainability” rules – the Football League’s version of financial fair play.

Championship clubs are only permitted to lose £39m over a three-year accounting period, and the £60m sale helped turn what would have been a pre-tax loss of £35.4m in 2017-18 into a pre-tax profit of £2.5m which avoided a breach.

The Owls were charged with misconduct over how and when the ground was sold, rather than the sale itself. Questions have been asked about the £60m valuation, and Land Registry documents say the deal, which is to be paid for in instalments over eight years, was not completed until almost a year after it was accounted for.

Possible punishments range from a reprimand to a points deduction of up to 21 points, a financial penalty or, in extreme cases, expulsion from the league. There is no precedent to follow.

Birmingham City were deducted nine points last season for breaching profit and sustainability rules, but earlier this month charges against them for breaching the business plan they agreed to as a result were dropped. Derby County have been charged with a profit and sustainability breach despite selling Pride Park.

Wednesday are nine points above the Championship relegation zone with nine matches to play if the League is able to resume as it hopes after the coronavirus outbreak. English professional football is currently suspended until April 30 “at the earliest”.

Wednesday have not reported any cases, but have closed their Middleton Road training ground indefinitely as a precaution.

Bradford City have extended their suspension of training at Woodhouse Grove School, which was originally due to resume today after a week’s hiatus, but the Valley Parade reception and ticket office remain open.