Sheffield Wednesday reject Club 9 investment

The Chicago-based sports firm had held lengthy talks with the Owls, who suffered relegation from the Championship following their final-day 2-2 draw at home to Crystal Palace.

But Wednesday revealed the level of investment, after expenses, would be "no more than 1.6m" which is "at a significantly lower level than had previously been agreed by all parties".

A club statement on the club's official website, www.swfc.co.uk, read: "The board of Sheffield Wednesday PLC can confirm it has this week received communication from Club 9 Sports LLC relating to a potential investment into Sheffield Wednesday Football Club.

"The new proposal would lead to an initial investment into the football club at a significantly lower level than had previously been agreed by all parties."

The statement continued: "The communication this week made it clear that Club 9 wanted to change the terms already agreed and wished to make a lower investment into Sheffield Wednesday.

"The proposal put forward by Club 9 this week was for an initial 2m investment into Sheffield Wednesday Football Club.

"After expenses this would equate to an investment of no more than 1.6m. For this, Club 9 wished to gain control of circa 40% of the company's total share capital, by way of new shares, and to have majority control of the board.

"Club 9 also indicated that as part of any investment they would charge the company 420,000 per annum in management fees.

"The press release issued by Club 9 gives the impression of an offer that is in the best interests of Sheffield Wednesday and one that has the acceptance of the Co-op Bank.

"The board do not believe that the initial investment into the club is significant enough to warrant giving away control of the board or of circa 40% of the company's total share capital.

"Likewise we do not believe a company should pay inflated fees at this level.

"The position is one that is shared by the Co-op Bank and as such the proposal put forward by Club 9 has been rejected."

The club added the board "continues to engage with other serious potential investors" but admitted "there can be no certainty any deal will be completed this summer".