Sheffield Wednesday: The Long, Long Wait For Change

On 23rd July, Sheffield Wednesday were served with a winding-up petition over £550,000 in unpaid taxes. For a club just relegated from the Championship and desperate for stability, it was a brutal confirmation of the crisis enveloping Hillsborough. It also triggered the inevitable transfer embargo, forcing the sale of goalkeeper Lee Grant to Burnley for £1m just to keep Her Majesty’s Revenue and Customs at bay.

Even that was not enough. The initial payment of £300,000, intended to clear the club’s PAYE debts, was later revealed to be merely a “very substantial payment” towards them. Ongoing taxes remained unpaid. In court on 11th August, a representative for the club had to promise that serious and advanced negotiations for the sale of the club were underway. It was a promise that has come to define a summer of stasis and recrimination.

An American Interloper

The most prominent suitor has been Club 9 Sports, a Chicago-based group of “sports and media advisors”. Their involvement began before the club’s relegation in May, championed by the now-departed chairman Lee Strafford. After Strafford’s resignation over the investment stalemate, the remaining directors, with club legend Howard Wilkinson installed as a temporary chairman, rejected the American offer.

The sticking point for many was the £400,000 in “management fees” Club 9 intended to charge the club. The Americans came back in early July with what they termed an improved offer, though it still appeared to be for $5m invested in two tranches. Spokesman Robert Beal insisted a “confidential clause” meant there was an increase, though he could not elaborate. The offer then transformed into a claimed “immediate balance sheet improvement of £9.5m,” predicated on the Co-Op bank writing off £6.5m of debt. The board, stating they had the bank’s full support, rejected it again, accusing Club 9 of “making noises in the media”.

This provoked a furious and public response. On 30th July, Club 9 released an open letter to supporters, claiming they had received an oral commitment from a board member that their offer would be accepted. They lambasted the board’s strategy “to sell as many players as it takes” to pay bills and accused them of a continued campaign to “dodge, detract and delay.”

The Turnaround Document

To win over sceptical fans, Club 9 published details of their proposed “turnaround”. They justified their management fees by pointing out that the current Sheffield Wednesday CEO is believed to be paid £220,000 per annum despite having no experience in football. Their executives, by contrast, had “deep” experience with major league teams in America.

The plan itself was a document drowning in corporate psychobabble. It promised to “establish metrics to measure goals and integrate them into financials” and to “institute culture of winning, success and leadership.” Staff would be “eliminated” if they were not “the best… or willing to become their best.” Under a heading declaring that “failure is not an option,” the plan stated that “bad attitudes, bad work ethics and bad language are not welcome.” The club’s local MP, David Blunkett, had earlier described the HMRC petition as “extremely unhelpful”.

More concretely, an “organic approach” to player recruitment would focus on the Americas. Ticket discounting would be “eliminated” because it devalues the product and, in a flourish of Americana, should only apply to seniors, children, and the military. A senior vice-president would be installed to “oversee the day-to-day implementation of best practices from the US.”

Clinging to Control

For all the corporate jargon, Club 9 did land one telling blow. “This board has no intentions of addressing the current and serious plight of the club if it means giving up control,” their statement read. This sentiment was echoed by Dennis Hobson, a well-known Sheffield personality backing the American bid. Hobson was blunt, noting that “Sheffield United have left us miles behind.” He recounted a conversation with the board: “They asked me what I could put in and said the football side takes care of itself and the boardroom is a separate entity. I said: ‘If I had £100m do you think I would give it to you to spend at Wednesday?’ I think the board are oblivious to reality.”

And yet, that board remains.

They continue to reference other, more discreet bidders, with former West Ham chairman Eggert Magnusson persistently linked with a mystery American party. While the directors fight to retain their positions and potential investors battle through the press, manager Alan Irvine and his players have made a respectable start to life in League One. Who will give them the opportunity to build on it, and when, remains as unclear as it has been for years. The wait goes on.