Sheffield Wednesday are staring at relegation into League One after being deducted a further six points by the EFL.
After Sheffield Wednesday entered administration in October, the Owls were handed a hefty 12-point deduction, leaving them adrift at the bottom of the Championship table.
And even before Henrik Pedersen’s side could get themselves back above zero points, Sheffield Wednesday have received a further 6-point deduction after failing to pay players and staff in March, May and June of this year.
Image courtesy of: CRAIG BROUGH/REUTERS.
Now, SWFC are 27 points adrift. The club is almost certain to be related to League One and all in the midst of a hugely important takeover at Hillsborough.
The club’s administrators previously set a December 5th deadline for naming a preferred bidder, though it’s still unclear who that person or party might be.
Next Sheffield Wednesday owner facing £9m prize money loss
Before the 6-point deduction, there seemed to be a glimmer of hope that the Owls could stay up. But following the latest deduction, with SWFC now on -10 points and having lost their last four, including a 3-0 defeat at home to Sheffield United, relegation now seems inevitable.
And relegation into League One will be particularly hurtful for Sheffield Wednesday because of the difference in TV revenue that clubs in the Championship make compared to clubs in League One. On top of commercial and matchday revenue, player trading, clubs in the EFL often rely quite heavily on prize money.
Per the BBC, clubs in the Championship last season received just below £11m, with half of that made up of solidary payments from the Premier League. That’s compared to around £2m for clubs in League One, per the same source, leaving Sheffield Wednesday £9m worse off if they’re relegated.
TV revenue for clubs in League One vs Championship
During the 2023/24 season, Championship clubs received a share of £446m in broadcast revenue, per Deloitte, compared to just £9m for the entirety of League One. But that was before Sky Sports agreed a new broadcasting deal with the EFL going into the 2024/25 season, in which they show over 1000 games a season.
Image courtesy of: ED SYKES/REUTERS.
EFL clubs received ‘guaranteed payments of £895m and £40m in marketing benefits’ but there are guaranteed more Championship games broadcast than League One (minimum of 328 Championship games compared to 248 League One games).
One study by Wrexham Insider has estimated that Championship clubs this season are receiving between £9.5-£12.5m, and League One clubs £2-2.4m, possibly leaving SWFC with yet another huge financial hole going into next season.
It’s understood that the true cost of a Sheffield Wednesday takeover is around £100m when factoring in the stadium repairs and running costs over three years. Combine that with relegation, and SWFC losing up to £20m in just broadcast and prize money alone, and it’s making the prospective takeover that bit less attractive for potential buyer.