The administrators for Sheffield Wednesday have this afternoon released an update statement regarding ‘preferred bidder status’ following the initial bidding process. It reads as follows:
‘Sheffield Wednesday can confirm that the administrators, Begbies Traynor, intend to grant preferred bidder status to a consortium following the conclusion of the initial bidding process. We recognise that any change of ownership is unsettling and that supporters will have questions. That is entirely understandable, particularly given the recent history of the Club.
The decision to move forward with a preferred bidder has been taken following extensive financial, legal and forensic due diligence, supported by specialist advisors. That work has progressed significantly since early stages of the process and has included a detailed assessment of funding sources, ownership structure and governance.
It is important to be clear on the process from this point.
Granting preferred bidder status does not mean a change of ownership is complete. Any proposed acquisition remains fully subject to the agreement of appropriate legal documentation and EFL approval, including the owners’ and directors’ test. The administrators will not complete a sale unless and until those requirements are satisfied.
The EFL has advised the administrators that this review will be thorough and will not have a set timescale. That is appropriate and expected, and we fully support that process.
From a financial perspective, the proposed financial offer from the preferred bidder provides certainty for the Club. The consortium we intend to progress with has submitted the strongest overall proposal for the Club. This includes:
• A fully funded offer;
• Clear financial assurances to support the Club’s trading requirements; and
• A structure that allows all creditor obligations to be dealt with in accordance with EFL rules, meaning no further sporting sanctions are anticipated as part of the transaction.
The consortium also brings existing experience in football ownership, including majority and minority interests in clubs operating within regulated league systems.
We are aware that commentary and speculation often intensify at moments like this. As with any complex process, views can evolve as further information becomes available and due diligence progresses. The administrators’ responsibility is to act in the best long-term interests of Sheffield Wednesday – whilst complying with our statutory duty to maximise returns to creditors – based on the most complete and current information.
We will continue to update supporters as the process moves forward but there will be periods when we are engaged in confidential negotiations in order to achieve a successful conclusion to ensure the long term future of Sheffield Wednesday.
Thank you for your continued support and patience during this important phase for the Club.’
Paul Stanley
Joint Administrator
