Sheffield Wednesday may face a point deduction as a result of the fresh disclosure of a £2 million HMRC debt, according to sports finance expert Kieran Maguire.
Sheffield Wednesday owner Dejphon Chansiri disclosed this week that the club owes HMRC £2 million, and in another emotional outburst aimed at the Wednesday faithful, the controversial Wednesday figure has urged the fans to cough up this £2 million.
And if the loan is not paid in whole and on time, the Owls could face serious consequences.
Clubs that ‘accrue 30 days of continuous failure in any 12-month period from July 1 to June 30 are subject to a three-window embargo,’ according to The Star.
Wednesday are already under a registration embargo, though fans online are fearing worse; the possiblity of administration.
In an interview with Yorkshire Live, football finance specialist Maguire explained what would happen to Sheffield Wednesday if they exceed this 30-day deadline:
“If we look at Reading Football Club as an example, there are a variety of sanctions ranging from extending the embargo – which I don’t think would be much of an issue – to the one that fans fear the most, which is points deductions.” That has happened to Reading a number of times in recent years. I believe there is a similar relationship between the fans and the owner there as there is at Hillsborough right now.”
It’s certainly a slippery slope that Wednesday are on, and without proper management, they could quickly find themsleves dropping down the Football League pyramid.
Reading are the obvious example given their numerous points deduction and the fact that they’re now battling to stay in League One.
And, considering Chansiri’s bad management of the club, many Owls fans will be worried that their team may suffer the same fate as the Royals.
However, Maguire’s words do not indicate that Wednesday would be docked points. There is still time for the club to resolve this issue, and other penalties could be imposed instead.
It is, however, a troubling period for everyone associated with the club.
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