Sheffield Wednesday fans were warned that disaster could ensue at the end of the 2024/25 campaign, and now, they’re going through a nightmare.
Sheffield Wednesday were placed on the EFL’s embargo list after Dejphon Chansiri failed to pay his players and staff during May.
Chansiri’s backroom staff have since received their payments, while the Wednesday players are still waiting to be paid, and that is worrying.
If the players were to go two months without pay at Sheffield Wednesday, as per FIFA rules, they would be able to hand in a 15-day notice period, where they would then leave the club as a free agent.
Amid the financial chaos under Chansiri, administration is seen as the best possible option for Sheffield Wednesday, with supporters still holding out hope that a buyer comes in for them.
Finance expert reveals Dejphon Chansiri’s Sheffield Wednesday valuation
Adam Shaw and his consortium are one party interested in taking over at Hillsborough, yet negotiating with the Thai owner has proven difficult.
It was revealed that Shaw saw a £55 million bid rejected by Chansiri, the second of two substantial offers the businessman sent his way.
Worryingly, it also emerged that Chansiri has snubbed bids of around £160 million for Sheffield Wednesday previously, with eyebrows being raised over how much he would be willing to sell the club for in 2025.
To gain further insight into the situation and find out how much he could offload the club for, we spoke to our resident finance expert, Adam Williams, who told EFL Analysis: “With club valuation, you’ve got to look at the quantifiable factors like debt-to-equity ratio, revenue averages, net assets and so on. But it’s not as scientific as some agencies and analysts would like to make out.
There have been talks of Saudi Arabian investment in Sheffield Wednesday, who would plan to build a 55,000-seater stadium. However, Williams questions whether they could satisfy the demand with an arena that big.
“Ultimately, value is a subjective construct and is as much to do with esoteric market forces as it is about financial metrics. With Wednesday, I think they have a huge brand potential and a dedicated fan base. Could they really satisfy demand in a 55,000-seater stadium? I’m not so sure.
“I think the costs would be prohibitive compared to the revenues it could generate. But there’s no doubt they are a big club whose fan base have been disenfranchised by Chansiri, who clearly has zero understanding of English football culture and his responsibilities as custodian of a community asset.
“I’m skeptical about the real-world value of any football club at present – they are black holes that demand huge benefactor funding and man hours.
“But there’s a catch and prestige that owning a club like Wednesday affords you and you pay a trophy-asset premium for that. If we look at what comparable clubs have gone for, I think what Adam Shaw says he’s offered Chansiri is maybe a little bit on the low side. Yes, there will need to be significant investment in infrastructure and you have to factor that in, but there is a lot of brand potential there.
He goes on to say that Wednesday are worth between £70-£85m, though Chansiri’s valuation is north of £100m, which would require a Middle Eastern fund or high-rolling equity firm to come along, and that doesn’t look likely.
“Look at what Wrexham are valuing themselves at – if they can justify that then Wednesday, whose fanbase is less transient, will think they can be worth £70-85m,” Williams added.
“That said, Chansiri seems to want to be able to recoup a significant chunk of the money he has loaned the club, which – on face value – seems to be dictating his £100m-plus price tag. That’s too high and, unless a Middle Eastern fund or high-rolling private equity firm comes along, I doubt he’ll get it.”
More chaos awaits Sheffield Wednesday
Should Chansiri fail to pay his players in June, they will be free to leave Sheffield Wednesday, as previously revealed.
Considering they’re under an embargo and not able to sign players with a transfer fee involved, it’s looking like a summer of struggle, and that doesn’t even factor in the future of Danny Rohl.
The German is under no rush to decide his future, and that is detrimental to the Owls, though it’s unlikely any manager would want to work under these conditions.
So, with Chansiri needing to find a way of paying the players for June, disaster could strike once more and leave them in a perilous position.
Discussion about this post