Sheff Wed to be docked 15 points if deal completed

Sheffield Wednesday will be handed a 15-point deduction for next season in League One if a deal with their new preferred bidder goes through.

Administrators have begun an exclusive period of negotiation with American private equity company Arise Capital Partners.

However, Arise's offer would not meet the EFL's requirement to repay creditors 25p in the pound, which would mean the Owls starting life back in League One with a significant handicap.

Dejphon Chansiri, their main creditor, is understood to have loaned the club £60m in more than a decade as owner, and must be paid back £15m of that if the Owls are to avoid a points loss.

New investors were sought after a proposed £47.8m deal led by former professional poker player James Bord collapsed.

A consortium led by David and Michael Storch and Tom Costin, who were one of three bidders back in December, have made a lower offer but it "represents the best available outcome currently achievable", the administrators said in a statement., external

"Our focus remains unchanged - to secure a responsible sale of the club, protect its future and achieve the best possible outcome for creditors," it added.

Former Newcastle owner Mike Ashley is also understood to have made a bid to buy the club.

Arise have put up a "substantial deposit" for the deal and evidence of funds to complete the takeover, including to cover the club's losses for eight weeks, allowing them to continue trading.

The takeover is now subject to EFL scrutiny.

The club's Supporters Trust welcomed the news, saying in a statement: "The Trust are grateful to David and Michael Storch and Tom Costin for meeting us.

"The meeting was very positive and we found them warm and engaging, passionate and interested.

"We look forward to working with them as owners of the club in the near future."

But the deal would leave Wednesday with a significant task to return to the Championship at the first attempt, after they were relegated with 13 games to play.

The club will fulfil their remaining nine fixtures this season and all staff will continue to be paid.

"We are thrilled and excited to take this important step toward stewardship of this historic football club," said Storch, managing partner of Arise.

"We are absolutely committed to delivering a brighter future for our fans and bringing joy back to Hillsborough."