Dejphon Chansiri opens talks to avert Sheffield Wednesday points penalty

Sheffield Wednesday owner Dejphon Chansiri has opened negotiations with prospective buyers Arise to avoid a 15-point deduction in League One next season.

The Thai businessman had previously ignored communication from the consortium fronted by David Storch.

However, he has now performed a dramatic U-turn to try and steer the Owls out of administration.

The English Football League (EFL) recently informed Storch that the club would face a severe sporting penalty upon dropping into the third tier.

Financial hurdles and stadium valuation

A proposed £20m takeover bid fell significantly short of the 25p in the pound required to satisfy unsecured creditors.

Chansiri himself is the main beneficiary among those owed money.

He now expects to receive around £2m from any revised agreement.

This figure represents a massive drop from the £16m he initially anticipated for the sale of Hillsborough stadium.

Seeking a clean slate

Arise and their legal representatives are now working closely with the current ownership to broker a compliant deal.

Storch had previously expressed deep frustration over the lack of dialogue.

“We have made repeated attempts, through the administrators, to engage with Mr Chansiri in order to find a constructive resolution. Those requests have gone unanswered.”David Storch

A successful compromise would satisfy remaining creditors within EFL guidelines and completely eradicate the looming sporting sanction.

This breakthrough provides a significant boost to the Yorkshire side’s hopes of securing an immediate return to the Championship.

Manager Henrik Pedersen has already indicated his desire to remain at the helm for the upcoming campaign.

Beginning life in League One on zero points would make the relegated club a far more attractive proposition for the new ownership.