Sheffield Wednesday make their point and see EFL punishment halved

The Owls were punished over the sale and lease-back of Hillsborough to club owner Dejphon Chansiri. That in itself was a permitted way of avoiding running up more than the £39m losses permitted in the Championship over a three-year period, but it was the way it was done and the timing of the move which incurred the wrath of the authorities.

Wednesday included the profits from the sale of the ground in their 2017-18 financial results, despite land registry documents showing the first instalment had not been made until the following year.

Despite pressure for the matter to be resolved last season when the club were fighting relegation, a verdict was delayed until the summer by the independent commission looking into the matter.

The club were furious with the initial charge, made last year, describing it as “unlawful”, and when the verdict was announced they immediately confirmed they would appeal.

Although they have been unable to overturn the verdict, they have at least reduced the size of the punishment.

The news means Wednesday remain bottom of the table, after Wycombe Wanderers beat Birmingham City last night, but stand just three points from fourth-from-bottom Coventry City and safety in the Championship.

There are 36 league matches remaining this season.

Manager Garry Monk had set his team the target of clearing their deficit by the international break which starts next week. With one match of that timeframe to play, they were on minus one after Tuesday’s victory over previously unbeaten Bournemouth.

“The independent panel has today rejected the club’s appeal related to matters surrounding the stadium sale and on consideration of the sanction; they did not agree with the club’s assertion that a points deduction should not have been imposed,” read a Football League statement last night.

“However, they did opt to reduce the sporting punishment from 12 points to six, which will be effective immediately.”

In 2016 and in keeping with a number of other governing bodies in football, the Football League introduced its own version of financial fair play rules – in its case called “profit and sustainability” rules – to try to make its teams more financially sustainable and make the integrity of the competition less susceptible to the whims of rich benefactors, who could pull out at a later date leaving their former clubs in financial ruin.

In their most recent financial accounts, the Owls’ wage bill was higher than their turnover – a common problem in the 
Championship which League chairman Rick Parry has been critical of.

The accounts for 2018-19 had been delayed partly by the coronavirus pandemic, and partly whilst the club awaited the outcome of their appeal.

The club has already made an effort to cut its cloth more 
realistically this season, releasing 10 members of the squad last season, and bringing in 
replacements on a much tighter budget.

Had the initial 12-point deduction been applied last season, it would have sent Wednesday into League One, but a six-point deduction would not do that, perhaps justifying the Football League’s decision not to impose the penalty straight away.

Chansiri, John Redgate and Katrien Meire – respectively finance director and chief executive at the time of the controversial sale – were handed individual charges over the matter, but these were later dropped.

The Owls play host to Millwall at Hillsborough on Saturday.

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