Exclusive: EFL now likely to take action over Sheffield Wednesday debts amid wage debacle..
The English Football League look set to withhold money from Sheffield Wednesday in order to pay off some of the club’s debts.
Wednesday are currently in a situation where most, if not all, won’t be getting paid for the month of July, something that has sadly become a regular occurrence at Hillsborough of late. At one stage the club were embargoed due to money owed to players, HMRC and other clubs by way of transfer fees.
At this point in time only the transfer fee embargo remains after the other debts were settled, but that may change over the next couple of days should – as expected – players not be paid on time once again.
With that in mind, The Star understands that the EFL is planning to take control of some of the club’s finances in order to pay their creditors, in line with Article 48 of their rules and regulations.
The new 2025 / 2026 EFL Sky Bet Championship match ball made by PUMA
The new 2025 / 2026 EFL Sky Bet Championship match ball made by PUMA | West Bromwich Albion FC via Gett
“Where a Member Club defaults in making any payment due to any of the following persons, the Member Club (‘Defaulting Club’) shall be subject to such penalty as the Board may decide and subject also to Article 48.2:
– The League, The FA Premier League and the Football Association; any of the Pension Schemes
– any Member Club and any Club of The FA Premier League; any holding company of The League and any subsidiary company of that holding company;
– any sums due to any full-time employee or former full-time employee of the Member Club by way of arrears of remuneration up to the date on which that contract of employment is terminated. This excludes for these purposes all and any claims for redundancy, unfair or wrongful dismissal or other claims arising out of the termination of the contract or in respect of any period after the actual date of termination;
– any sums due to the Professional Footballers Association in repayment of an interest free loan together with such reasonable administration and legal costs as have been approved by the Board;
– The Football Foundation;
– The Football Conference Limited trading as “the National League”;
– Any member club of the League or organisations listed in Articles 48.1.8 to 48.1.11 inclusive;
– Any County Football Association affiliated to The Football Association; and
– Any Leagues affiliated to The Football Association and any clubs affiliated to any County Football Association recognised by The Football Association
The aforementioned Article 48.2 says, “Subject to the provisions of Articles 48.3 and 48.4, the Board shall apply any sums standing to the credit of the Pool Account which would otherwise be payable to a Defaulting Club, in discharging the creditors in Article 48.1. As between the Football Creditors, the priority for payment shall be in accordance with the order in which those Football Creditors are listed in Article 48.1.”
In short, the League have the power to pay the club’s creditors, including players, staff and other clubs owed money, rather than sending TV money and other such amounts to the club itself. That is believed to be one the next steps that could be taken.
Wednesday are due to get their 2025/26 season underway a week on Sunday, and are severely unprepared on the back of a chaotic summer. Question marks remain over what sort of team they’ll be able to field away at Leicester City.
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