Submission could bring transfer embargo to an end
Sheffield Wednesday have today published their financial accounts for the year end 31/07/2021 via their official website, www.swfc.co.uk
It has been stated that the club have been under the restrictions of a transfer embargo, imposed by the EFL for late submission of these accounts to them. Although Companies House, which oversees the filing of company accounts in England, granted a Covid-related extension to the end of July, the EFL did not agree to such an extension to cover submissions to them and so was said to be placing restrictions on clubs with late accounts as of April 2021 for their own deadline of March 31st.
The 2020 accounts do not make for great reading, as many would have expected. The Owls recorded a loss of just over £24M. This, added to the £19M profit in 2019 and the £35M loss recorded in 2018, takes Wednesday’s combined 3-year loss figure to £40M. Some of the expenses included in those losses will be exempt from the EFL financial fair play rules and so it is likely that the losses in that respect are below the total £39M permitted.
Headline figures in the statements include a total wage bill of over £33M, which, wile down from over £36M the previous year, still represents a figure far in excess of what is sustainable for a club with a total turnover of less than £21M.
Even if transfer restrictions are lifted, the Owls are unlikely to go on a major spending spree given the overall state of the finances. Manager Darren Moore may well have to continue to look at free-transfers and targets within a much more reasonable wage bracket as he shapes his squad for the season in League One.