EFL side set for 15-point deduction from start of next season after setting unwanted relegation record

Ed Griffiths
Wed, 15 Apr 2026 21:38:11 +0000

Sheffield Wednesday's prospective purchasers have received formal notification from the English Football League that the club will face a 15-point penalty when they begin their League One campaign next season.

The American private equity firm Arise Capital Partners, headed by financier David Storch, emerged as the frontrunner to acquire the Hillsborough outfit.

Wednesday's drop to the third tier was sealed back in February, making this the earliest Championship relegation on record.

Storch confirmed the sanction in a statement posted on X.

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He wrote: "We have now been informed that a 15-point penalty is set to be imposed at the start of next season."

The punishment stems from EFL regulations requiring any takeover bid to return at least 25 pence in the pound to existing creditors.

Arise Capital's £20million offer falls well short of this threshold, amounting to approximately 6p per pound for unsecured creditors.

A substantial portion of the club's outstanding debt is owed to departing owner Dejphon Chansiri, who has reportedly declined to write down or restructure what he is owed.

The consortium had previously indicated reluctance to pay £15million to Chansiri as part of any deal.

Storch stated that repeated attempts to reach a resolution with the former owner through administrators have gone unanswered.

The US financier strongly opposed the league's ruling.

Storch wrote: "We fundamentally disagree with this decision."

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His consortium sought to challenge the penalty through independent arbitration, even offering to cover all legal expenses to promote transparency and fairness, but the EFL rejected this request.

Storch highlighted the unusual nature of Wednesday's predicament, noting: "What makes this situation particularly difficult is that it is entirely unique."

Beyond the financial disputes, the prospective owner also described Hillsborough's facilities as "inadequate", warning they require "significant and urgent" investment.

Despite the mounting obstacles, Storch reassured supporters that the acquisition remains on course for completion by May 1.

He said: "Sheffield Wednesday is worth saving. We believe in its supporters, its history, and its future."

Storch pledged to invest the necessary time, capital and energy to rebuild the club from its infrastructure to its footballing foundations.

The Owls have already suffered 18 points in deductions during the current campaign-12 for entering administration and a further six for breaching financial regulations-leaving them on minus four with four matches remaining.

Next term, Wednesday face the prospect of dropping to the fourth tier for the first time in their 149-year existence.