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Sheffield Wednesday have filed for administration, which has resulted in the already struggling side being hit with an immediate 12-point deduction.
The South Yorkshire club currently sit bottom of the Championship, the second tier of English football. Known as The Owls, Wednesday are one of the oldest surviving clubs in world football, with more than 150 years of history.
Court records confirm the club have filed for administration. A notice was filed at a specialist court at 10.01am.
The EFL also confirmed on Friday that it had received formal notice of the decision. Before Friday's development, they had six points from 11 games.
Now they have -6 points, sitting 15 away from safety in the division. What has happened? The Owls, who host Oxford United on Saturday, have been in turmoil for a long time.
On 3 June, owner Dejphon Chansiri, a Thai canned fish magnate who took over the club in 2015, was charged with breaching EFL regulations regarding payment obligations. Weeks later, Mr Chansiri said he was willing to sell the club in a statement on their official website.
Their crisis deepened just days later when another embargo was imposed on the club relating to payments owed to HMRC, before players and staff were not paid on time on 30 June. In the months that followed, forwards Josh Windass and Michael Smith left the club by mutual consent.
Manager Danny Rohl, now at Rangers, also left by mutual consent. The Owls were forced to close the 9,255-capacity North Stand at Hillsborough after a prohibition notice was issued by Sheffield City Council.
The club's captain, Barry Bannan, said he was "gutted" after hearing the news. "Hopefully, sometimes you have to be dropped to come back again.
But if there's ever a club to do it, it's this club, because the fan base we've got is amazing," he said. Staff at Hillsborough Stadium could be seen removing seats in the stands that spelt out Mr Chansiri's name.
'First step to getting our Wednesday back' A statement from Sheffield Wednesday Supporters' Trust said: "Today marks one of the most bittersweet days in our club's proud 158-year history. "Entering administration was the inevitable outcome of years of financial mismanagement, a lack of accountability, and repeated failures to engage credible buyers.
Administration is not something to be celebrated. It needn't have ended this way.
But we are overjoyed to have Dejphon Chansiri out of our club for good. "Administration represents a necessary turning point.
With the club now totally out of Chansiri's hands, this may be the first step to getting our Wednesday back. It closes an era defined by poor decisions and deep divisions, both on and off the pitch.
Once Hillsborough is recovered from his ownership, Chansiri's influence will finally be consigned to history, a regrettable chapter in Sheffield Wednesday's long and storied history. It added: "Now, more than ever, Wednesdayites must stand together, patient, proud, and focused on rebuilding a football club that truly represents Sheffield: honest, sustainable, and ambitious." 'League table updated with immediate effect' In a statement, the EFL said: "The EFL can confirm that it has now received formal notice that Dejphon Chansiri, the director of Sheffield Wednesday Football Club, has taken the necessary steps to appoint administrators to both the club and also the company which owns Hillsborough.
"While this development results in the automatic deduction of 12 points in accordance with regulations agreed by all clubs, it also presents Sheffield Wednesday with the opportunity to move matters towards a successful sale and secure future under new ownership. "The EFL will now engage in discussions with the administrators in respect of the immediate actions required to enable them to achieve an early resolution, and end the ongoing uncertainty faced by Sheffield Wednesday staff, management, players, supporters and all those associated with the club and their local community.
"The Championship league table will be updated with immediate effect." 'No interruption to fixture schedule' Paul Stanley, joint administrator along with Julian Pitts and Kris Wigfield, said there would be no interruption to the Owls' forthcoming fixtures. Mr Stanley said: "Sheffield Wednesday are a massive, historic club with a loyal fan base in a city that lives and breathes football.
If more fans return to Hillsborough, the club can cover its day-to-day costs and move towards a viable sale to a new ownership capable of restoring long-term stability. "With the right ownership structure, we are confident that the club has a bright future and will meet all EFL regulatory obligations." Last season, Wednesday finished 12th.
They had already been placed under registration embargoes in the last two seasons after being hit by a six-point deduction during the 2020/21 campaign, for breaching profit and sustainability rules. Read more from Sky News:Strong gold demand behind surprising rise in retail salesMost influential black people in the UK named Owls manager, Henrik Pedersen, said: "It's a sad situation that a club with our history has to go into administration.
"But this is one side of the bread, the other side is this is also the beginning of a new era, we can get a fresh restart and we can start to look into the future and create something positive again.".