It’s safe to say Dejphon Chansiri is in a precarious position at Sheffield Wednesday, but could the EFL now be about to kick him out of the club thanks to its latest regulations?
With unpaid wages and HMRC tax bills, Sheffield Wednesday is very much a club in crisis right now, with a three-window transfer ban hanging over their heads.
Dejphon Chansiri is at the heart of those issues, with many fans hoping and praying the Thai businessman will move on sooner rather than later.
We are told multiple bidders are pushing for a takeover at Sheffield Wednesday, but there’s still a chance that Chansiri could be removed before that even happens.
Photo by Catherine Ivill/Getty ImagesEFL Regulator is unlikely to come for Dejphon Chansiri as things stand
With the new Football Governance Bill now set to be passed into law, there are big questions as to what this means for clubs like Sheffield Wednesday.
So, EFL Analysis spoke to our finance expert, Adam Williams, about whether this could lead to the EFL Regulator removing Chansiri from his position of power at Sheffield Wednesday.
He said: “On my reading of the bill, the regulator won’t apply their tests automatically to incumbent owners like Chansiri, but it will have the powers to test and remove them if they are found to be unsuitable. But what determines unsuitable?
“Broadly, I think there are three categories: character and integrity, financial problems and compliance issues. In Chansiri’s case, he isn’t accused of doing anything criminal or having wealth connected to criminal conduct, so that’s a non-starter.
“We also aren’t aware of any regulatory action being taken against him. He isn’t under any international sanctions or subject to arbitration. So again, this isn’t going to get him out of Sheffield Wednesday.”
The more likely avenue would be if Chansiri broke any particular rules, more specifically in terms of communication and compliance.
Williams added: “In terms of the compliance issue, that’s a technical point. If Chansiri didn’t give the regulator notice of a director’s appointment, for example, that can be grounds to start the suitability test.
“Chansiri also needs to inform the regulator if there is a material change in his circumstances which means he can’t run the club anymore, either because of financial issues or because of any – entirely hypothetical – action against him, for example.
Photo by Michael Regan/Getty ImagesWhat could prompt the EFL removing Dejphon Chansiri?
So, it sounds like it would be pretty difficult and rather unlikely for the EFL to step in, even now, and take action against Chansiri. But, Williams told us what would have to happen for that to change.
He said: “In the event that the regulator were to intervene, it would most likely be because of a financial issue. If he goes bankrupt or has his assets seized inside the UK or outside, that’s grounds for dismissal.
“The regulator can also consider the financial health of companies or organisations connected to Chansiri. If those companies have failed to pay creditors or have gone into administration, that can trigger the regulator to test the owners’ suitability.”
Thai Union shareholders – data via ThaiUnion.com
But, even within these parameters there are loopholes and potential issues that could allow Chansiri to continue in his role unchallenged.
Williams added: “The thing is, there aren’t specific thresholds for these financial metrics, nor is there anything like that with regards to character and integrity. Instead, the regulator has pretty broad discretionary powers. There are no triggers where an owner is automatically disqualified out of hand.
“He needs to go, but I think the regulator is going to act more as a backstop rather than initiating anything with regards to Chansiri at Wednesday.”
There are doubts as to whether Chansiri actually wants to sell Sheffield Wednesday, but with pressure from the Supporters Trust to get a deal done, there is still hope that this situation can resolve itself organically rather than via brute force.