£85m Sheffield Wednesday takeover verdict issued as Dejphon Chansiri saga evolves, ‘Middle East or private equity…’
Sheffield Wednesday fans were warned that calamity may strike at the end of the 2024/25 season, and now they’re experiencing a nightmare.
Sheffield Wednesday were placed on the EFL embargo list after Dejphon Chansiri failed to pay his players and staff in May. The backroom personnel at Chansiri have subsequently got their payments, but the Wednesday players have yet to be paid, which is concerning.
According to FIFA rules, if the players go two months without salary at Sheffield Wednesday, they can give a 15-day notice period and leave the club as free agents. In the midst of financial uncertainty under Chansiri, administration is viewed as the best option for Sheffield Wednesday, with fans still hoping for a buyer.
Finance expert reveals Dejphon Chansiri’s Sheffield Wednesday valuation
Adam Shaw and his consortium are one of the parties interested in buying over Hillsborough, but negotiations with the Thai owner have proved problematic. Shaw’s £55 million approach was rejected by Chansiri, the second of two major offers the billionaire made to him. Worryingly, Chansiri has already rejected proposals for Sheffield Wednesday worth roughly £160 million, raising questions about how much he is willing to sell the club for in 2025.
To gain a better understanding of the situation and determine how much he could sell the club for, we spoke with our resident finance expert, Adam Williams, who told EFL Analysis: “With club valuation, you have to look at quantifiable factors like debt-to-equity ratio, revenue averages, net assets, and so on. However, it is not as scientific as some authorities and experts claim. There has been discussion of Saudi Arabian investment in Sheffield Wednesday, with plans to build a 55,000-seat stadium. However, Williams worries if they can meet demand with such a large facility.
“Ultimately, value is a subjective notion that is influenced by both esoteric market dynamics and financial criteria. I believe Wednesday has a great brand potential and a loyal fan base. Could they possibly meet demand in a 55,000-seat stadium? I’m not too sure. “I believe the costs would outweigh the potential returns. But there’s no denying that they’re a major club whose fan base has been disenfranchised by Chansiri, who clearly understands nothing about English football culture or his obligations as custodian of a community asset. “I’m sceptical about the real-world usefulness of any football team at the moment; they’re black holes that require massive patron cash and man hours.
“But there’s a catch: owning a club like Wednesday provides you with prestige, for which you pay a trophy-asset premium. If we look at what other clubs have paid, I believe Adam Shaw’s offer to Chansiri is on the low side. Yes, major infrastructure investment will be required, which must be considered, but there is a lot of brand potential. He goes on to explain that Wednesday is valued between £70 and £85 million, while Chansiri’s assessment is higher than £100 million, which would necessitate the involvement of a Middle Eastern fund or a high-rolling equity firm, which does not appear to be 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 pointed out. “That said, Chansiri appears to want to reclaim a major portion of the money he has borrowed the club, which, on face value, appears to be dictating his £100 million price tag. That’s too much, and until a Middle Eastern fund or a wealthy private equity firm comes along, I doubt he’ll get it.”
More chaos awaits Sheffield Wednesday
If Chansiri fails to pay his players by June, they will be free to depart Sheffield Wednesday, as previously announced. Given that they are under an embargo and are unable to sign players for a transfer fee, it appears that they will have a difficult summer, and this is before we even consider Danny Rohl’s future. The German is in no hurry to make a decision about his future, which is bad for the Owls, but no manager would want to work under these circumstances. So, with Chansiri needing to find a method to pay the players in June, calamity could strike again, leaving them in a precarious position.
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