Owls to be deducted 12 points in the Championship next season

Sheffield Wednesday have confirmed they are due to start the 2020-21 season with a 12-point deduction.

The Owls were hit with the penalty by an independent disciplinary commission after an EFL misconduct charge back in November 2019 over charges of breaching Profitability & Sustainability rules due to the sale of their Hillsborough stadium to owner Dejphon Chansiri for about £60m.

That helped them record a pre-tax profit of £2.5m for 2017-18, as without the sale of the ground, Wednesday would have posted a pre-tax loss of £35.4m for the financial year covering the 2017-18 campaign.

That would have followed on from deficits of £9.8m and £20.8m in the previous two seasons and under the EFL's profitability and sustainability rules, Championship clubs are only allowed to lose £39m over three years.

A statement on the EFL website said: "An independent Disciplinary Commission, appointed under EFL Regulations, has ruled that Sheffield Wednesday will receive a 12 point deduction for breaching the League’s Profitability and Sustainability Rules for the three season reporting period ending with Season 2017/18.

"The sporting sanction will take effect in season 2020/21.

"The Club was charged in November 2019 and referred to an independent Disciplinary Commission, which conducted a full hearing at the end of June 2020, before finding the Club guilty based on the fact that the Club should not have included profits from the sale of Hillsborough Stadium in the Club’s financial statements for the period ending July 2018.

"The Club was found not guilty of a further charge of breaching its duty of utmost good faith to the EFL by deliberately concealing information from the League in respect of filings made in respect of the Profitability and Sustainability Rules."

Meanwhile, a statement on the Wednesday official website said: "Sheffield Wednesday acknowledges the decision of the independent disciplinary commission announced today.

"The club is extremely disappointed that the commission has imposed a 12-point deduction to be applied next season and awaits the written reasons for this decision.

"The club welcomes the decision that the commission cleared Sheffield Wednesday of the charge of acting in bad faith in its dealings with the EFL.

"Further, the commission decided not to apply a 12-point deduction this season, thereby imposing relegation.

"The club will await the written reasons for the sanction and upon receipt will digest and consider the full detail with its legal advisers before making any further comment."

The decision could lead to a legal challenge from Charlton Athletic who were relegated after finishing the season third bottom on 48 points.

Had the deduction been made for the current term, they would have finished above Wednesday, who were 16th on 56 points and avoided the drop.