Just days after their relegation to the third tier of English football, Sheffield Wednesday has been launched into further turmoil as a consortium led by professional poker player James Bord has collapsed.
They said that after seeking legal advice, they had offered too much for the crisis club and then withdrew their offer.
A statement was released by the consortium yesterday, which said: “The figure we offered is significantly higher than that justified by the findings of a lengthy due diligence process. To all the long-suffering fans of this great club, it is with the greatest regret that we have decided not to pursue our bid to become your new custodians.
“The historic mishandling of the club and pattern of catastrophic underinvestment means our sizeable binding bid can no longer be justified.”
Mr Bord’s group is said to of bid £40 million for the club, significantly more than the initial £32.5 million that it was initially reported.
Mike Ashley, the former owner of Newcastle United, is set to discuss a potential takeover of the soon-to-be league club with the team’s administrators today.
It is understood at this stage that any successful bid for the club will come under the requisite figure needed to satisfy the EFL’s 25p rule – meaning if Wednesday fail to pay creditors 25 percent of their debts, they will face a 15-point deduction to take into their return season in League One.
On Sunday, Sheffield Wednesday lost the Steel City Derby 2-1 to Sheffield United, making this seasons’ Owls side the earliest team to ever get relegated in the EFL.
The club have been in administration since 24 October, after former owner Dejphon Chansiri oversaw the club going bust.
Wednesday have adequate cash flow to complete the season after receiving the EFL’s central funding, as well as raising money through player sales in January. However, their prospects past this season are shrouded in doubt.
Last night, Sheffield Wednesday’s miserable season continued, with a 2-0 away defeat to Norwich. It seems Sheffield Wednesday’s main goal left for this season is to not be the only team in EFL history to finish on negative points.
Administrators Begbies Traynors say they chose the Bord group after they paid a non-refundable deposit of £2.5 million.
However, they will continue the search for a buyer amid questions from fans lingering over their recommendation of Bord’s group as preferred bidders.