Is Storch Ready to Transform the Owls' Future?

David Storch is vying to become the next owner of Sheffield Wednesday, a club currently facing significant challenges, including a -9 points deduction that leaves them 30 points adrift of Championship safety. Storch's vision, which emphasises excellence and proper governance, contrasts sharply with that of the club's former owner, Dejphon Chansiri, as he seeks to restore pride and success to the Hillsborough club.

Last updated: 18 October 2023 (BST)

What’s happening now

Sheffield Wednesday is in a precarious position, having entered administration in October 2023, which has culminated in a -9 point deduction and a looming relegation to League One. David Storch has officially submitted a bid to acquire the club, expressing a strong desire to implement a new governance structure and enhance the club's operational standards. He is competing against former Newcastle United owner Mike Ashley and Dunfermline owner James Bord, with the administrators indicating that a preferred bidder will soon be named.

Key takeaways

David Storch has made an official bid to buy Sheffield Wednesday amidst ongoing financial turmoil.
Storch emphasises a commitment to proper governance, fan engagement, and operational excellence.
Sheffield Wednesday currently has a -9 points deduction and is facing imminent relegation.
Storch's bid is seen as a long-term investment rather than a quick fix.
Competition for ownership includes notable figures like Mike Ashley.

Timeline: how we got here

The journey of Sheffield Wednesday into its current predicament is marked by significant events:

October 2023: The club entered administration, leading to a -9 point deduction.
November 2023: David Storch attended a match, experiencing the passionate fan base and energy of the club.
October 2023: Storch submitted a formal bid to take over the club.

What’s new vs what’s known

New today/this week

David Storch announced his bid to purchase Sheffield Wednesday, outlining a strategic vision focused on governance and sustainability. This comes amid ongoing discussions about the club's future and the administration process.

What was already established

Sheffield Wednesday has been struggling for years, having not played in the Premier League for 25 years and facing multiple relegations. Previous owner Dejphon Chansiri's management style has been scrutinised, especially regarding the absence of a CEO and sporting director.

Impact for the UK

Consumers and households

The ongoing crisis at Sheffield Wednesday affects not only the club's financial health but also its local fan base and community. With a potential relegation, local businesses that rely on matchday income could also suffer.

Businesses and jobs

The club's financial situation could impact jobs within the organisation. If Storch takes over, his plans for improvement could lead to new opportunities, but the immediate future remains uncertain as the administration process unfolds.

Policy and regulation

The English Football League (EFL) has strict rules regarding club ownership and financial management, particularly the '25p in the pound' rule that requires clubs exiting administration to pay a minimum of 25% of debts. Storch's bid aims to comply with these regulations to avoid further penalties.

Numbers that matter

-9: Current points deduction for Sheffield Wednesday due to administration.
25 years: Duration since Sheffield Wednesday last played in the Premier League.
3: Number of times the club has been relegated to League One in the past 25 years.
2026: The year by which significant changes are expected as the club seeks stability and progress.
$2 billion: Assets under management by Owl Ventures, the firm associated with Storch's bid.

Definitions and jargon buster

Administration: A legal process where a company is unable to pay its debts and seeks protection from creditors.
EFL: English Football League, the governing body for professional football leagues in England.
CEO: Chief Executive Officer, the highest-ranking executive in a company.
25p in the pound rule: EFL regulation requiring clubs exiting administration to pay creditors at least 25p for every £1 owed.

How to think about the next steps

Near term (0–4 weeks)

The immediate focus will be on the administration process and the selection of a preferred bidder. Storch is awaiting feedback from the administrators regarding his bid.

Medium term (1–6 months)

Should Storch's bid be successful, the focus will shift to implementing his strategic vision, prioritising governance and fan engagement, and ensuring compliance with EFL rules to avoid further penalties.

Signals to watch

Updates from the administrators regarding the selection of a preferred bidder.
Compliance with EFL regulations, particularly regarding the 25p rule.
Storch’s plans for governance and operational changes at the club.

Practical guidance

Do

Stay informed about the club's administration process and updates on potential ownership changes.
Engage with the club's community and support local businesses affected by matchday income.
Follow developments regarding governance changes and the new ownership's plans.

Don’t

Don’t assume immediate changes will occur; restoring a club takes time.
Don’t overlook the importance of fan engagement in the club's recovery.
Don’t ignore the potential risks associated with the administration process.

Checklist

Check for the latest news on the club’s administration status.
Review the implications of the EFL's rules on club ownership.
Monitor community events and initiatives around the club.
Stay engaged on social media for updates from the club and fan groups.
Prepare for potential changes in matchday experiences and club operations.

Risks, caveats, and uncertainties

While Storch appears committed to a positive transformation at Sheffield Wednesday, uncertainties remain regarding the EFL's approval process and the potential for additional points deductions. The previous controversies surrounding Storch's former company may also raise concerns about his suitability as an owner. Additionally, the club's historical struggles could impact fan sentiment and trust in new leadership.

Bottom line

David Storch's bid represents a potential turning point for Sheffield Wednesday, aiming to restore the club's past glory through a focus on governance and fan engagement. However, the club faces significant challenges ahead, and its future will largely depend on the successful navigation through the administration process and the EFL's regulatory landscape.

FAQs

Who is David Storch?

David Storch is the founder and managing partner of Arise Capital Partners, currently looking to purchase Sheffield Wednesday, focusing on governance and operational excellence.

What are the current challenges facing Sheffield Wednesday?

Sheffield Wednesday is dealing with a -9 points deduction due to entering administration, making them 30 points adrift of Championship safety.

What is the '25p in the pound' rule?

This EFL regulation requires clubs exiting administration to pay at least 25p for every £1 owed to unsecured creditors to avoid further penalties.