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Sheffield Wednesday Issued with Winding-up Order

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KA5A8IAN

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Feb 6, 2010
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Well, erm, not the best news emerging from Sheffield today.

Sheffield Wednesday say they are "disappointed" after being given a winding up order by HM Revenue and Customs over an unpaid £550,000 tax bill.

The football club have been struggling to pay the debt after being relegated to League One last season, and will appear at the High Court on August 11.
However, the Owls tried to reassure fans that they are "not about to be wound up, nor enter into administration".
The statement added: "We have been involved in dialogue with HMRC for a number of weeks.
"As such we have been somewhat surprised and disappointed by their decision to seek a winding up order at this time."
It went on: "We understand that HMRC is taking a tougher line in general with football clubs, but feel their actions are disproportionate and will raise unnecessary speculation as to the financial position of the club."
Wednesday have had to call on help from the club's bank, the Co-operative, which also said it was "disappointed" by the winding up order.
David Blunkett MP, who represents the Brightside and Hillsborough constituency, called HMRC's action "deeply unhelpful".
He added: "I share the club's concern about pre-emptive moves particularly where, with the Co-operative Bank, constructive discussions were in progress.
"Action of this kind can only cause both deep distress to the fans and the club's management, and undermine the club's efforts to obtain substantial funding for future development."
The club's chief executive Nick Parker told the Yorkshire Evening Post he was confident the money would be found before August 11.
He said the club decided not to pay the tax bill on time, in agreement with the bank.
"As part of our ongoing pressure on cash flow, we have decided to adopt the same approach as other clubs to HMRC. A consequence of this has been this court order which is similar to those received by Preston, Cardiff and many other clubs."
The winding up petition means Wednesday will be hit by a transfer embargo, but this will have little effect as they have already signed eight new players during the summer.
In January, Wednesday were involved in takeover talks with Chicago-based investment firm Club 9 Sports.
No agreement was reached between the two parties.



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Jul 6, 2010
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£550,000 isn't that much for a football team, is it? :/
Its more than enough in League 1, although it is tough for club, I think a hard line is needed, speaking as a fan of 3 clubs, 2 of which have had finacial troubles, administration and points deducted recently.

CLUE: Man City isn't one of them :p
 

CJACKO11

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Dec 16, 2009
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its mad i remember Wednesday being a decent side in the Premiership with Di Canio upfront its just mad how quickly things turn around, thats why i always enjoy the success Chelsea get whether its league titles, carling cup or community shield.
 

IanC

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Feb 18, 2009
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With the news the other day that the HM Revenue and Customs were to start putting the pressure on the clubs that owe them money it looks like they are carrying the threat through. Unfortunately we are going to see more of this. Bad news really for Wednesday.
 
Jul 6, 2010
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its mad i remember Wednesday being a decent side in the Premiership with Di Canio upfront its just mad how quickly things turn around, thats why i always enjoy the success Chelsea get whether its league titles, carling cup or community shield.
It can work both ways - 10 years ago Leeds were top-flight and Wigan were in League 2
 

swfc1234

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Jul 29, 2009
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we have been promised we won't be entering administration and that they expect it to be sorted out before the hearing at court on the 11th of august
 
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