The English Football League is poised to reassess its rules on club insolvency after the recent takeover of Sheffield Wednesday, a move that has sparked outrage among several clubs. Their frustration stems from the fact that the Owls managed to avoid a 15‑point sanction, even though they technically breached the league’s agreed‑upon insolvency policy when they emerged from administration. The backdrop to this controversy involves Wednesday’s former proprietor, Thai businessman Dejphon Chansiri, who had extended a total of £64 million in loans to the club during his tenure. Of that sum, a quarter – roughly £16 million – remains outstanding and is owed to him.
When the club was sold to the new owner, David Storch, he declined to settle this debt, arguing that Chansiri had left the club in a precarious financial position. Had Storch chosen to pay the £16 million, his overall acquisition cost would have more than doubled. Despite Storch’s refusal to pay, Sky Sports News has obtained exclusive information that an alternative offer is still on the table for Chansiri.
The proposal, valued at several million pounds, would be triggered if Sheffield Wednesday secure promotion back to the Championship at the first attempt. This arrangement mirrors a deal Chansiri himself negotiated with his predecessor, Milan Mandarić, when he purchased the club in 2015.
According to Sky Sports News, Storch’s offer is time‑sensitive and will expire later this month. Chansiri must act quickly if he wishes to accept the terms. The existence of this credible, pending offer was a pivotal factor in the EFL board’s decision to refrain from imposing a points deduction; the league concluded that the club was not at fault for the former owner’s intransigence. On the final Saturday of the season, a festive atmosphere enveloped Hillsborough.
A countdown appeared on the big screen, reducing the imagined 15‑point penalty point by point, while the Owls’ supporters erupted in repeated cheers. In reality, however, the penalty had never been formally levied by the EFL, meaning there was no sanction to rescind.
The EFL’s insolvency guidelines stipulate that new owners must make a genuine effort to clear the club’s debts. Football‑related creditors and HM Revenue & Customs must be paid in full, while other creditors are to receive 25p for every pound owed. What ultimately convinced the league to waive the points deduction in Wednesday’s case was Storch’s proactive negotiations with Chansiri and evidence that the former owner was unwilling to cooperate. Sky Sports News reports that when Storch presented his offer, Chansiri contacted the administrators, demanding that the club be put back on the market in hopes of fetching a higher price.
Such a move would have dramatically increased the risk of the club entering liquidation, especially given the imminent collapse of revenue streams at the season’s end. If Storch’s deal had not materialised when it did, there were genuine concerns that Sheffield Wednesday might not survive beyond the summer. The club’s financial lifeline was precarious, with cash flow drying up and no guarantee of future income. A number of other Championship clubs have voiced their displeasure that Wednesday avoided a points deduction that would affect the start of next season in League One.
These clubs have chosen to remain anonymous, but their grievances highlight a broader unease about the consistency and fairness of the EFL’s insolvency policy. Consequently, the league is expected to convene a series of consultations with member clubs before the next campaign begins, focusing specifically on the insolvency framework. The current policy was originally adopted by the clubs themselves in 2023, following Derby County’s exit from administration ten months earlier, when David Clowes took over the club. In Derby’s case, former owner Mel Morris agreed to write off a substantial portion of the money he was owed, after having injected over £200 million of his own capital into the club before it entered administration.
Some Championship clubs argue that Derby’s situation set a precedent: an agreement with the outgoing owner was required to avoid a points penalty. By contrast, Wednesday’s failure to reach a similar settlement with Chansiri – yet still escaping punishment – is seen as an inconsistency.
The EFL board defended its decision by stating that Storch had exhausted every reasonable avenue to negotiate with Chansiri and that penalising the club for the predecessor’s rigidity would be unjust. Nonetheless, several clubs have raised concerns that the insolvency policy is the sole area of the EFL’s rulebook where the board retains discretionary power to impose—or waive—a points deduction.
In all other matters, such as breaches of the Profit and Sustainability Rules, decisions are made by the Club Financial Reporting Unit (CFRU), an entity that operates independently of the league’s administrators. This perceived lack of uniformity has fueled calls for clearer, more transparent guidelines that limit discretionary judgments and ensure equal treatment for all clubs facing financial distress. Critics argue that without such reforms, the league risks undermining confidence among its members and could create a perception that financial penalties are applied unevenly, depending on the influence or negotiations of individual owners.
As the new season approaches, the EFL’s handling of Wednesday’s case will likely serve as a benchmark for how future insolvency situations are managed. Whether the league will tighten its policies, introduce stricter enforcement mechanisms, or maintain its current level of discretion remains to be seen. What is clear, however, is that the debate has reignited interest in the balance between protecting clubs’ financial health and ensuring competitive fairness across the English football pyramid.
The controversy also underscores the broader challenges facing clubs in the modern game, where escalating wages, transfer fees, and operational costs can quickly outstrip revenue, especially for teams outside the Premier League. As clubs navigate these pressures, robust and transparent insolvency rules become essential to safeguard both the sporting integrity of the leagues and the financial viability of the clubs themselves.
In summary, Sheffield Wednesday’s avoidance of a points deduction—thanks to a time‑limited offer to its former owner and diligent negotiations by its new proprietor—has sparked a wider discussion about the EFL’s insolvency policy, the extent of the board’s discretion, and the need for consistent, fair treatment of all clubs facing financial hardship.