The EFL confirmed Sheffield Wednesday were deducted 12 points after they applied for administration on Friday morning.
Sheffield Wednesday were already bottom of the Championship and currently sit on -6 points.
The notice of commencement of administration was filed in the Companies Court at 10.01am on Friday.
The EFL has previously charged clubs with breaches of regulations on a number of occasions after they failed to pay players their wages on time.
In a statement released on Friday afternoon, the EFL said: “Sheffield Wednesday Football Club director Dejphon Chansiri confirms that the EFL has received formal notification that the necessary steps have been taken to appoint administrators for both the club and the company that owns Hillsborough.”
“This development results in an automatic 12-point deduction in line with regulations agreed by all clubs, while also giving Sheffield Wednesday the opportunity to move matters towards a successful sale and secure their future under new owners.
“The EFL will now engage in discussions with administrators regarding the immediate actions needed to achieve an early resolution and put an end to the ongoing uncertainty facing Sheffield Wednesday staff, management, players, supporters and everyone associated with the club and community.
“The Championship league table will be updated immediately.”
The club’s financial problems under current owner Dejphon Chansiri are well-documented, with reports that a liquidation order from HMRC is imminent.
Currently, a notice for the appointment of an administrator has been filed with the Bankruptcy Company Court, a specialized court under the High Court.
It is understood that around £1 million in unpaid tax will be owed to HMRC on Wednesday.
It is believed that this will be the catalyst for ultimately applying for administration.
On Wednesday fans boycotted the home game against Middlesbrough.
What happens next?
If a club goes into administration, they will immediately receive a 12-point deduction. Derby County were the last EFL club to go into administration in 2021.
Management company Begbies Traynor Group was today appointed administrators. Sky Sports News I understand.
The parties involved have reportedly been discussing the possibility of this event for several weeks.
Chansiri remains the club’s largest creditor and will remain involved in the administration process.
Further penalties will be decided by an independent committee, as the team has failed to pay first-team players on time for five of the last seven months, which could result in a separate additional point deduction.
‘Wednesday one of the most bittersweet days in history’
Statement from Sheffield Wednesday Supporters Trust:
“Today is one of the most bittersweet days in our club’s proud 158-year history.
“Entering into management was the inevitable result of years of financial mismanagement, lack of accountability and repeated failures to engage reliable buyers. Management is not something to celebrate. It does not have to end this way, but we are very pleased to see Dejphon Chansiri leave our club for good.
“The management is at a necessary turning point. With the club now completely out of Chansiri’s hands, this could be the first step to reclaiming Wednesday. It marks the end of an era defined by poor decisions and deep divisions on and off the pitch. Once Hillsborough return to ownership, Chansiri’s influence will finally be recorded in history. This could be the first step for Sheffield Wednesday. It is a regrettable chapter in a long and storied history.
“We understand that this news will bring uncertainty and anxiety about what will happen next, but there is good reason for calm optimism.
“The appointed managers are highly experienced professionals, including one who has been a Sheffield Wednesday season ticket holder for decades, the Trust has already begun talks with them and will play its full role in protecting the long-term survival and sustainable future of our club.
“Now more than ever, the people of Wednesday need to be patient and proud to stand together in rebuilding an honest, sustainable and ambitious football club that truly represents Sheffield. “We have shown the strength of organizing and standing together as supporters over the last few months. We have shown that a football club is worth nothing without its fans. This also means the new owners will take our lead. It showed us the passion we have to offer if we can leverage that support in the right way.
“The trust expects strong interest from potential buyers. However, if a suitable sale does not materialize, supporters can be assured that we have been working over the past few months to develop a credible fan-led takeover offer, which will ensure that even in a worst-case scenario the threat of liquidation will not be an option.
“The Trust will continue to keep supporters fully informed and outline practical steps every fan can take to ensure a brighter future for our club. Together we will build back stronger, fairer and forever proud of what Wednesday has become.”
Wednesday’s Nightmare 3 Months
Sheffield Wednesday applied for an executive order
June 3: Club owner Dejphon Chansiri has been charged with breaching EFL regulations relating to payment obligations.
June 18th: The EFL will impose a three-window fee limit for late payments exceeding 30 days between 1 July 2024 and 30 June 2025.
June 26: In a statement posted on the club’s official website, Chansiri said he is willing to sell the club.
June 27: Another embargo has been imposed on the club in relation to amounts owed to HMRC.
June 30th: Players and staff did not receive their salaries on time.
July 17th: Josh Windass and Michael Smith are leaving the club by mutual consent.
July 29: Danny Röhl leaves the position of Manager by mutual consent. The club was forced to close its 9,255-capacity north stand at Hillsborough after Sheffield City Council issued a ban notice following a meeting with the local safety advisory group.
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Earlier this month, Sky Sports News’ Rob Dorsett explained what the consequences were for Sheffield Wednesday after missing a deadline to pay senior players’ wages.
July 30th: Players and staff did not receive their salaries on time.
July 31st: Röhl’s assistant Henrik Pedersen has signed a three-year contract to become the club’s new manager.
August 6th: The EFL has released a statement explaining its position on this situation. “We are clear that the current owners must fulfill their commitment to fund the club to meet its obligations or sell it to a well-funded party for fair market value to end the current uncertainty and deadlock.”
August 8th: The transfer ban has been lifted after settlement of unpaid balances, but the fee limit remains the same.
August 10th: The Owls lost 2-1 to Leicester in their championship opener at the King Power Stadium.
August 13th: The ban on the North Stand has been lifted after “necessary professional safety assurance”.
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Sky Bet Championship match highlights between Sheffield Wednesday and Middlesbrough
September 4th: Fans protested against Chansiri outside the Thai embassy in London on Wednesday.
September 30th: Players and staff did not receive their salaries on time.
October 4th: Lost 5-0 at home to Coventry on Wednesday. Kick-off was delayed after fans rushed to Hillsborough Stadium to protest against Chansiri.
October 14th: Players and staff will receive unpaid salaries starting in September.
October 16th: There is news that a petition to HMRC to repay more than £1 million in debt is imminent.
October 22nd: Fans boycotted the home game against Middlesbrough on Wednesday. Official attendance figures have not been released.
October 24: I apply for administration on Wednesday and receive a 12-point deduction from the EFL.
