Sheffield Wednesday went into administration on Friday and a number of interested parties have already been in touch with those charged with overseeing a sale.
Formal expressions of interest are unlikely until administrators open a data room, which will attempt to outline the financial picture at Hillsborough to potential buyers.
Those who wish to gain access to that information will need to show bank account details proving that they have sufficient funds and are a serious player.
And Daily Mail Sport understands Mike Ashley is among those monitoring the situation at the club.
Ashley, the former Newcastle United owner who specialises in acquiring distressed assets, is aware of the situation and, according to those with knowledge of the process, weighing up next steps.
While fans of the North East club were delighted to see him leave, there are many in South Yorkshire who believe his business acumen could be what Wednesday need to put them back on track after the disastrous end of the regime of former owner Dejphon Chansiri.
Sheffield Wednesday need to be put back on track after the disastrous end of the regime of former owner Dejphon Chansiri
Wednesday are, in all likelihood, set to play in League One next season after administration triggered a 12-point deduction which currently leaves them 16 from safety
Ashley, born in Walsall but raised in Buckinghamshire, made his fortune via his Sports Direct business. He took over at St James’ Park in 2007 and departed 14 years later after selling to Saudi Arabia’s PIF for around £300m. While on Tyneside he paid off a number of debts and kept the club financially stable, but was criticised by some for a perceived lack of ambition. In 2018 he added House of Fraser to a portfolio which owns a series of fashion brands.
Earlier this year Ashley, 61, was named the 52nd richest person in the UK with an estimated net worth of £3.12billion.
It is unknown how much Wednesday will be sold for, but those involved are confident that there will be no shortage of bidders with ‘four or five’ already lined up. Chansiri, a Thai businessman under whose watch the Owls descended into financial turmoil, paid around £30million for the club in 2015. A similar figure would not come as a surprise this time round. The situation is complicated slightly by a £7.3m charge on the Chansiri-linked company which owns Hillsborough and is also in administration.
Wednesday are, in all likelihood, set to play in League One next season after administration triggered a 12-point deduction which currently leaves them 16 from safety. They face further charges by the EFL, although it is understood that any other deductions would also be enforced this season, should they be forthcoming.
Following a boycott, long-suffering fans have flooded back to the club on a wave of goodwill triggered by Chansiri’s departure. A crowd of more than 27,000 watched Saturday’s defeat by Oxford United while the club shop, also subject to a boycott, took £150,000 in quick time as supporters flocked to buy shirts and merchandise.
Kit manufacturers Macron are among a long list of those waiting to be paid. There is also an outstanding bill of around £1m to HMRC which triggered the administration, while wages of around £800,000 are due on Friday. A solidarity payment of £453,000 will soon land from the EFL along with a further £2.3m in January, There is likely to be a deduction of around £200,000 for monies owed to the competition.
There are also fees to other clubs outstanding but while football creditors, under law, have to be paid in full, the level of debt is not thought to be prohibitive. The number of non-football creditors is not said to be substantial because, in the latter stages of Chansiri’s reign, with wages late on a regular basis, the club was unable to secure credit lines with companies who were well aware of their situation.
The wage bill has also been reduced dramatically thanks to a desperate summer cull, while staff redundancies are thought to be unlikely as the club has already been stripped to the bare bones.
Mike Ashley, 61, is the 52nd richest person in the UK with an estimated net worth of £3.12billion, but was a divisive owner of Newcastle
Wednesday boss Henrik Pedersen has had to juggle myriad off-pitch issues this season
While Hillsborough is under a company called Sheffield 3, it is unlikely that any successful bidder would buy the club without the stadium. To satisfy the EFL’s test, a buyer has to provide 10 years security of tenure.
Wednesday are seen as a highly-attractive proposition, with many viewing them as the biggest club outside the Premier League. The city of Sheffield has the sixth largest population in the country and, aside from rivals United, the other biggest clubs are some distance away in Leeds, Manchester and Nottingham.
While it may sound like a romantic notion, the club’s long history could also be a selling point, especially to potentially interested parties from overseas. One thing buyers would have to consider is the level of investment needed in Hillsborough, which would benefit from a widespread upgrade.
Administrators Begbies Traynor have already received multiple inquiries and one of their main challenges will be to separate the tyre kickers and would-be middle men from the serious operators.
Joint administrator Kris Wigfield told the BBC that ‘four or five interested parties look like the real deal’.
There is a confidence that things will move relatively quickly, although a sale is thought to be more likely on the other side of Christmas. In an ideal world, new owners would be in place in time for the January transfer window and armed with much-needed funds to strengthen the squad.
A young Wednesday supporter makes himself heard during their 2-1 loss to Oxford United on Saturday
The EFL are ready to expedite their approval process, but will carry out the necessary checks on any new owner, regardless. Under their rules, a period of exclusivity cannot be entered into in the first 28 days of administration.
Paul Stanley, who oversaw the sale of Wigan Athletic for Begbies Traynor and who is now working on a Wednesday sale, told Daily Mail Sport that things could move quickly.
‘This is an incredible opportunity for the right buyer,’ he said. ‘This is a huge football club with the fanbase and potential to match. Our work at the moment is concentrating on ensuring that the wages are paid and that the club meets its demands. We’re very hopeful of the outcome that Sheffield Wednesday and their supporters deserve.’
Representatives for Mike Ashley have been contacted for comment.
