Sheffield Wednesday have been given a 28-day stay of execution by a High Court Judge in order to find new owners and pay off their outstanding tax bill.
The club, best known as ‘The Owls’ had been facing a winding up petition from HM Revenue & Customs for £600,000, but the judge revealed in court that the figure had more than doubled to £1.4m due to interest, VAT and fines.
The judge confirmed that the Yorkshire football club, were currently insolvent, but had been granted the extension under exceptional circumstances.
Deputy prime minister and Sheffield MP Nick Clegg, who lobbied the tax authorities and the club’s bank to help win a reprieve, warned that Wednesday’s escape was “only a stay of execution and much more needs to be done.”
Wednesday had hoped to broker a deal before the court date with one of four suitors including Leicester chairman Milan Mandaric, but time ran out. The Co-Op Bank, the largest creditor with around £23m outstanding, was said to support the Mandaric offer, but current club chairman Howard Wilkinson has been critical of the offer.
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