Investor advances Owls £2m to fend off winding-up threat

An investor, understood to be the oilfield company behind a bid fronted by former Owls player and manager Chris Turner, has agreed to advance 2m to the debt-ridden club to solve a short-term cash crisis with a view to a permanent takeover.

The money should remove the immediate threat of administration that has been hanging over the club ahead of a November 17 High Court hearing for a winding-up petition over unpaid tax.

The news comes as the

Yorkshire Post begins a three-part series charting a traumatic year behind the scenes as the Owls slipped closer and closer to a financial abyss from which last night they appeared to be retreating, to Wednesday chairman Howard Wilkinson's relief.

"I am delighted that a bona fide investor has confirmed their commitment to be long-term investors in Sheffield Wednesday," said Wilkinson. "I am equally happy that as a sign of their commitment, the investor will inject some short-term working capital into the club.

"We still have a small way to go before we can provide full details as to the longer term future, but I believe (last night's) news should act as a calming influence upon all stakeholders, especially our supporters and playing staff."

A spokesman for the investor said: "We are committed to being long-term partners of the fans and other stakeholders of Sheffield Wednesday Football Club.

"It is quite clear that the club has both a short-term financial need, while longer term investment is needed to assist in rejuvenating the Owls. The short-term need is greatest and so our initial payment is being made to allow for the investment process to conclude without the distracting fear of administration."

The spokesman also asked for fans to focus on matters on the pitch – a plea which comes after sustained disputes and despair over the financial disarray had left the club's board "broken".

Documented minutes obtained by the Yorkshire Post reveal increasingly bitter internal battles and a myriad of unsuccessful investment approaches which left Wednesday facing administration until the dramatic intervention of long-awaited investors emerged last night.

The contents of board minutes, spanning the 12-month period which culminated in Wednesday's relegation in May, show:

n Splits over the status of the club's budget and level of spending ultimately resulting in the chairman's resignation.

n The club putting a stop on paying creditors as long ago as last December.

n Finance director Bob Grierson twice threatening to resign.

n Chief executive Nick Parker estimating a 4m hole in the current season's budget.

n The huge scale of Wednesday's search for investment, including meeting Premier League chairman Sir Dave Richards, and a cast of suitors from the USA to Australia to Europe and even a brief appearance from a Bahraini sheikh.

Former chairman Lee Strafford last night said: "I welcome the new investment but I believe the club's directors – bar Wilkinson – have still not taken responsibility for the club's demise.

"I hope the takeover formalities can be completed without any complications."

A final takeover deal may yet hinge on what recompense directors and former directors are prepared to accept for outstanding loans, totalling nearly 5m, including interest.

But administration in the future would see them receive very little and the new investor now appears to hold the whip hand in negotiations.

The Yorkshire Post's three-part look at the club's boardroom turmoil begins at the close of the 2008-09 campaign – a season which ended with a comfortable mid-table finish in the Championship and a planned push for the play-offs next time out.

Strafford had joined the board four months earlier with a brief to secure much-needed investment with the club's total debts standing at around 30m.

He initially brought a four-strong consortium to the negotiating table as part of his approach to join the board.

Although the deal broke down in the Spring, the internet entrepreneur remained in post, along with new chief executive Nick Parker, who had joined the board as part of the Strafford 'package deal.'

As an array of would-be investors continued to show interest, Strafford and Parker closed in on agreements with loan-holders, including former and current directors, to accept knocked down or delayed repayments to help push through investment.

The duo also drew up ambitious plans to overhaul Wednesday's facilities and boost crowds after Strafford argued selling the club would only be achieved if the prospectus included a clear business plan and one that was already being put in place.

As a result, facilities were overhauled, a bid to host World Cup matches was quickly put in place, a modern approach to communication including Strafford's use of social media emerged, a new ticketing system, new shirt supplier, new sponsors, even new, locally-supplied pies.

An ambitious approach was initially agreed by the board but the minutes show the agreement dissolving into bitter recrimination as it emerged Strafford and Parker had been singing from a different financial hymn sheet to the one held by the club's long-standing finance director Bob Grierson.

Strafford last night said: "When we initially got involved a big play was made of the break-even nature of the club and all the plans were based on that understanding. That turned out not to be the case. If we had understood the full picture, the financial plan would have been different."

The club last night issued a statement on behalf of the whole board stating: "The club will not be offering any comment on the specifics of board minutes as described by the Yorkshire Post. To do so will not be in keeping with what the whole board believe to be the best practice for any company – namely that discussions within the boardroom must remain private.

"The board's focus is on securing the necessary investment that our club needs. Such investment will draw a line under the problems and politics of the past, and allow all Wednesday fans to contemplate a brighter future."