Preferred Bidder Consortium Withdraws from Sheffield Wednesday Takeover Process

A consortium led by Dunfermline co-owner James Bord has withdrawn from the process to purchase Sheffield Wednesday.

The group had been granted exclusivity by administrators Begbies Traynor in December after being named preferred bidder on Christmas Eve. Their proposal was understood to be the highest of three formal offers submitted for the club.

Since then, discussions have taken place with the English Football League regarding the Owners’ and Directors’ Test. Additional information was submitted by the consortium last week at the request of the authorities, with reported concerns still requiring clarification.

However, the consortium has now confirmed it is stepping away, citing a revised understanding of the club’s financial position. It stated that its updated valuation of Sheffield Wednesday was “significantly lower” than its original offer, which was understood to be well in excess of £30m.

The group had paid a substantial deposit upon becoming preferred bidder and had been funding the club’s operating losses, estimated at around £1m per month, during the exclusivity period. Those payments are not expected to be refunded under the terms of the agreement. Player sales in January were completed to protect against the potential loss of that funding stream.

In a statement confirming their withdrawal, a spokesperson for the consortium said:

“Throughout the process to purchase Sheffield Wednesday Football Club we have at all times respected the integrity of the process, working professionally, constructively and transparently with the administrator, the EFL and the IFR to provide them with the details they need to satisfy their tests.

“We have done so in full adherence to the rules applied – including on communicating our involvement, vision and future plans, rather than making any public comments.

“Unfortunately, we have regretfully decided that we must withdraw from the process.

“Our initial bid had constraints applied on our ability to renegotiate – which is crucial as the figure we offered is significantly higher than that justified by the findings of a lengthy due diligence process.”