Sheffield Wednesday has been in administration since October 24 and incurred an 18-point deduction this season.
The EFL has informed the preferred bidder for Sheffield Wednesday that the club is slated to begin next season in League One with a 15-point penalty.
Arise Capital Partners, spearheaded by David Storch, was designated as the preferred bidder last month after a prior takeover attempt of the financially distressed club faltered.
In a statement, Storch conveyed that the consortium is appealing to the EFL to acknowledge the “unique” circumstances confronting the League One-bound club.
However, BBC Sport has learned that the £20m bid from the American private equity firm, upon closer examination, would equate to approximately 6 pence in the pound for unsecured creditors, with former owner Dejphon Chansiri poised to be the primary beneficiary.
This figure falls significantly short of the 25 pence in the pound threshold required to circumvent a 15-point deduction in the upcoming season.
“We have now been informed that a 15-point penalty is set to be imposed at the start of next season. We fundamentally disagree with this decision,” Storch stated.
“We also requested the opportunity for this matter to be reviewed through independent arbitration – going as far as offering to cover all associated legal costs ourselves in the interest of transparency and fairness. That request has been denied.
“What makes this situation particularly difficult is that it is entirely unique. A significant portion of the club’s debt sits with its former owner who has not agreed to write down or restructure that debt.
“We have made repeated attempts, through the administrators, to engage with Mr Chansiri in order to find a constructive resolution. Those requests have gone unanswered.”
Storch further commented that the facilities at Hillsborough, the club’s home ground, are “inadequate” and necessitate “significant and urgent” improvements.
Despite the ongoing challenges, Storch reassured supporters that the group remains committed to finalizing the takeover by May 1.
“Sheffield Wednesday is worth saving. We believe in its supporters, its history, and its future,” he affirmed.
“And, as we have shown to date, we remain prepared to invest the time, capital and energy required to rebuild this club properly – from its infrastructure to its footballing foundations.
“We are simply asking to be heard properly, for the circumstances to be fully considered, and for a decision that reflects the reality on the ground – not one that risks further harm to a club facing extraordinary challenges and that has already suffered substantial penalties.”
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