Owner must pump more money into Championship club to ensure survival
DIRECTORS at Sheffield Wednesday have said there is “material uncertainty” over the financial future of the club, which was acquired last February by a Thai businessman.
They admitted in accounts published today that the financial health of the club relied on the goodwill of owner Dejphon Chansiri, but acknowledged there is no legal requirement for him to continue to provide financial support.
The club’s statement said: “The directors consider that the outlook presents significant challenges in terms of maintaining sufficient income to cover costs in the foreseeable future.”
“The directors have determined that additional funding will be required to enable the company to continue in operational existence.”
Mr Chansiri, a businessman behind Thai Union Frozen Products, acquired the club in a £30m deal last February.
Sole shareholder Mr Chansiri has improved the club’s balance sheet, by clearing the bank debt and converting £23.2m of debt into share capital.
Sheffield Wednesday reported that turnover rose £1.1m in the year to May 2015, to £14.9m.
Pre-tax losses were reduced to £4.4m – a £1.2m improvement which was boosted by an additional £900,000 profit from player trading. The major transfer deal was the sale of Michail Antonio to Nottingham Forest, for a reported £1.5m.
The club’s commercial revenues rose 8%, helped by a 3% increase in its average attendance and a £900,000 increase in its non-matchday revenues. However its wage bill rose by £900,000 and remained at 90% of its turnover.
The Championship club is enjoying a good season on the field and with 12 games remaining are in sixth position, which would see them qualify for the play-offs that could result in promotion to the Premier League.
