Mismanagement Plunges Owls into Administration Over £1M Tax Bill

Sheffield Wednesday’s chronic financial struggles culminated on Friday as the club was placed into administration over mounting debts, including an estimated £1 million owed to HMRC. The move by owner Dejphon Chansiri was seen as a last resort, with reports of an imminent winding-up petition from the tax authorities.
The club’s finances have been deteriorating sharply. Players and staff have gone unpaid in five of the last seven months, forcing the club to live “hand-to-mouth.” Any recent income, such as solidarity payments from the Premier League, was immediately used to service existing debts.
Kris Wigfield, one of the joint administrators from Begbies Traynor, confirmed the club had been “trading at a significant loss for several years.” He stated that Chansiri’s decision allows them to market the club and the stadium “as a whole,” which is considered “great news for supporters.”
The immediate sporting consequence is a 12-point deduction from the EFL, dropping the Owls to -6 points at the foot of the Championship. This financial crisis had already cost the team dearly, with the previous manager and key players departing in the summer due to the wage issues.
Culture Secretary Lisa Nandy commented on the situation, calling it another “reminder of the need for the independent football regulator.” She drew parallels to her own team, Wigan Athletic, expressing hope for a swift resolution for Wednesday fans.