Championship clubs on alert as Wednesday hearing starts
Sheffield Wednesday’s legal fight with the English Football League will start today, in a potentially significant development for the Championship season.
Wednesday’s battle over charges of breaching profitability and sustainability rules is being heard by an independent disciplinary commission, after the dispute was brought forward following complaints from rival clubs.
Wednesday have been locked in a dispute with the EFL since last November, after they were charged with financial misconduct – which they strenuously deny.
If they are found guilty, potential punishments range from a points deduction to a transfer embargo or fine, and will be decided by the independent commission.
It has been alleged privately by some rival clubs that Wednesday could be facing a hefty points deduction if found guilty. Barnsley have told the EFL they will consider legal action if they are relegated and the charges have not been concluded. The EFL declined to comment last night.
Wednesday were charged over alleged breaches regarding the £60million sale of Hillsborough to chairman Dejphon Chansiri, enabling them to post a pre-tax profit of £2.5 million.
The charges relate to “how and when” it was sold, and its subsequent inclusion in the 2017-18 accounts when it was sold a year later.
Wednesday deny the charges and issued a counterclaim against the EFL for allegedly “acting unlawfully”.
Derby County are still waiting to discover the date of their hearing, after they were charged in January with exceeding “excess losses”, understood to relate to the £80million sale of Pride Park to a company owned by Mel Morris, the club’s chairman. Morris maintains the sale of fixed assets was previously allowed in the rules and Derby will “strongly contest” the charge.