YP


SHEFFIELD Wednesday have secured a provisional agreement to halve the club's multi-million pound debts with the Co-op Bank, the Yorkshire Post can reveal.


The deal would see the Owls effectively shake off the stranglehold the bank has held on the club's financial future and pave the way for planned investment.

Wednesday currently owe around £21m to the Co-op and restructuring the debt is key to bringing in an investment package worth around £50m.

The bank is agreeing to forego half the debt on the condition that the club also achieves agreement with other key shareholders over outstanding loans and secures the injection of funds from new backers.

Wednesday have so far remained tight-lipped over the identity of the investors but it is understood they are based in the UK, the US and India. The club is in a much stronger position to secure investment if new money directly benefits the business rather than simply servicing long-term debts.

The Co-op Bank is seeking to reduce its involvement in football clubs nationally and although yesterday's statement from Hillsborough did not detail the amount the bank is prepared to forego, it is around half.

The statement said the club had reached an outline agreement with the bank which would "result in the club being in a sound financial position."

For the agreement to go through, Wednesday also need to reach deals with current directors Geoff Hulley, Ken Cooke and Bob Grierson and former directors Dave Allen, Keith Addy and Mick Wright who all have loans – totalling around £3.35m – in the club.

If the bank is preparing to forego such a significant sum, it is highly likely the loanees will be expected to accept less than full repayment.

Yesterday's statement said "…positive discussions with the other major creditors and certain key shareholders are at an advanced stage and progressing well. It is believed that a satisfactory outcome will be achieved thus allowing a definitive agreement to be put before potential investors."

If everything goes according to plan, Wednesday hope to announce the full proposals by the original deadline set for securing new investment – March 31. An extraordinary general meeting of shareholders is set to be called to approve a new issue of shares reserved for the new backers to allow them to take control of the club.

Wednesday chief executive Nick Parker, who took up the post when Lee Strafford became chairman last month, said: "Long-term financial stability is obviously a pre-requisite before any professional investor will put money into a business and these positive discussions pave the way forward for the club.

"We thank all the major creditors and parties involved for their support during this complex and protracted process and look forward to delivering a successful and financially secure future for Sheffield Wednesday."

Sounds good to me even if i havent got an A level in buisiness lol.

I just wish SWFC would sign all these deals before announcing them.They never learn form recent past mistakes.
PS have just read t'other post.Maybe Co-Op are trying to increase there losses before GB bails them out.

Delusions again smoke and mirrors a major investor is going to write off 15 million pounds dream on resturcturing could mean anything they could foreclose on you, or they could write off 50p off you are really delusional do you honestly think they are going to walk away and leave you all hunky dorey, please explain to me why they should do that.

Billy B

The bank is agreeing to forego half the debt


so hand outs again... no shame. :(

Well, I wish the club the best of luck. I understand some Blades are negative and that's probably out of fear, but I would welcome Wednesday being on a more level playing field with us. I'd very much like to see both Sheffield teams in the top flight and then we'll hopefully get proper coverage for our derbys.

YP


SHEFFIELD Wednesday have secured a provisional agreement to halve the club's multi-million pound debts with the Co-op Bank, the Yorkshire Post can reveal.


The deal would see the Owls effectively shake off the stranglehold the bank has held on the club's financial future and pave the way for planned investment.

Wednesday currently owe around £21m to the Co-op and restructuring the debt is key to bringing in an investment package worth around £50m.

The bank is agreeing to forego half the debt on the condition that the club also achieves agreement with other key shareholders over outstanding loans and secures the injection of funds from new backers.

Wednesday have so far remained tight-lipped over the identity of the investors but it is understood they are based in the UK, the US and India. The club is in a much stronger position to secure investment if new money directly benefits the business rather than simply servicing long-term debts.

The Co-op Bank is seeking to reduce its involvement in football clubs nationally and although yesterday's statement from Hillsborough did not detail the amount the bank is prepared to forego, it is around half.

The statement said the club had reached an outline agreement with the bank which would "result in the club being in a sound financial position."

For the agreement to go through, Wednesday also need to reach deals with current directors Geoff Hulley, Ken Cooke and Bob Grierson and former directors Dave Allen, Keith Addy and Mick Wright who all have loans – totalling around £3.35m – in the club.

If the bank is preparing to forego such a significant sum, it is highly likely the loanees will be expected to accept less than full repayment.

Yesterday's statement said "…positive discussions with the other major creditors and certain key shareholders are at an advanced stage and progressing well. It is believed that a satisfactory outcome will be achieved thus allowing a definitive agreement to be put before potential investors."

If everything goes according to plan, Wednesday hope to announce the full proposals by the original deadline set for securing new investment – March 31. An extraordinary general meeting of shareholders is set to be called to approve a new issue of shares reserved for the new backers to allow them to take control of the club.

Wednesday chief executive Nick Parker, who took up the post when Lee Strafford became chairman last month, said: "Long-term financial stability is obviously a pre-requisite before any professional investor will put money into a business and these positive discussions pave the way forward for the club.

"We thank all the major creditors and parties involved for their support during this complex and protracted process and look forward to delivering a successful and financially secure future for Sheffield Wednesday."

July 1st:D:thumbsup:

i'm glad we've got billy on the inside knowing all thats happening:rolleyes:sounds good but i also wish they would get it all signed and seasled before announcing things like this but if all that is true then sounds good. lets hope allen and co would take less of a payout from us though:(

i'm glad we've got billy on the inside knowing all thats happening:rolleyes:sounds good but i also wish they would get it all signed and seasled before announcing things like this but if all that is true then sounds good. lets hope allen and co would take less of a payout from us though:(

I suppose you can't blame them for trying to build up some optimism, though. Hope will bring more people through the turnstiles and will help to get the club back on track.

Reading between the lines....It sounds like Wednesday have said to the criditors that they either take a cut of something or wednesday will just go into administration! and as we all know....a cut of something is better than a cut of nothing! Not a proud moment in a wednesdayites life but....football isn't the priority these days, it's all about business, sad but true.

July 1st:D:thumbsup:

7/2/09 :D:thumbsup:

so hand outs again... no shame. :(

none at all
talk to frank

none at all
talk to frank

BB is getting worried in case we are able to spend money on players in the future. but if it happens it happens ,if not we carry on regardless

so hand outs again... no shame. :(

A bit like 30 million for not being good enough - you're right, no shame

A bit like 30 million for not being good enough - you're right, no shame

blooboy. dont reply to me at 4.10 on a saturday. unlike you i am at the game.

so hand outs again... no shame. :(



so now that we don't have to pay the money to the bank,will they be dishing it out to the fans,i mean since 1999 i've contributed to the club so i deserve a re-bate......got a lot to fork out in may.....so i'd just settle for a grand....even if we had an average 25.000 over this period it would only cost the club 25 grand......cheques in the post...thanks mr strafford

in notw today (cant find link) the yanks are coming

It's quite common practice for banks to partly write off the footballing debt, several clubs have done it. It's not as if the bank is losing out overall, or Wednesday aren't paying off what they've overspent - over the years the cash we've paid them in interest will be far more than what's written off the debt.

Then again, I wouldn't rely on anything printed in the Yorkshire Post. If their "exclusives" had turned out to be right we'd have Uncle Festa as chairman now fronting the Russian billionaire consortium, Alan Shearer as manager with Dalglish as director of football, and we'd just have spent the first of our annual £50m donation...

football isn't the priority these days, it's all about business, sad but true.

If that were true then why give away shirt sponsorship rights that could have earned several hundred thousand pounds?

If that were true then why give away shirt sponsorship rights that could have earned several hundred thousand pounds?

where do you get those figures from?.

where do you get those figures from?.

those figures were made by the club when they anounced the shirt deal.

those figures were made by the club when they anounced the shirt deal.

link please Eli............. Do you think a club who owe a bank £21m could then give £500,000 away one week and ask the bank to write half the £21m the next week. Get real.

The shirt deal is to be expected in these financially uncertain times. I have no idea what the best sponsorship offer was but with it SWFC would have expected the rent of a box for corporate entertainment, bar bill, food bill etc; I wouldn't be surprised if we have had a derisory offer to sponsor the shirts without any of the add ons.

Remember the Co-Op bank are also Sheffield City Council's bankers, a bit of pressure from high quarters might have been applied in favour of the cities flagship Sheffield Childrens Hospital. And I wouldn't be at all surprised if SCH also bank with the Co-Op Bank.

As for the debt, it has been there for so long that it's probably been written off year by year in the bank's books. If say £10million were agreed it just might be applied to their books as pure profit. Another thing comes to mind, are the former director's loans to be paid back in full or in line with what the bank finally settle for?

Who knows, none of us for sure.

The shirt deal is to be expected in these financially uncertain times. I have no idea what the best sponsorship offer was but with it SWFC would have expected the rent of a box box for corporate entertainment, bar bill, food bill etc; I wouldn't be surprised if we have had a derisory offer to sponsor the shirts without any of the add ons.

Remember the Co-Op bank are also Sheffield City Council's bankers, a bit of pressure from high quarters might have been applied in favour of the cities flagship Sheffield Childrens Hospital. And I wouldn't be at all surprised if SCH also bank with the Co-Op Bank.

As for the debt, it has been there for so long that it's probably been written off year by year in the bank's books. If say £10million were agreed it just might be applied to their books as pure profit. Another thing comes to mind, are the former director's loans to be paid back in full or in line with what the bank finally settle for?

Who knows, none of us for sure.

think the link says "on condition the former directors take a similar reduction", or something to that effect.

I don;t know much about re-financing multimillion pound overdrafts but i do know one thing-

You don't get anything for free-- especially not from banks.

so hand outs again... no shame. :(

2 words..........WEST HAM

2 words..........WEST HAM

whats that got to do with a serial begging football club?.

whats that got to do with a serial begging football club?.

Ladey Bloke was having a pop at us for hand out's yet your lot are after 30 mill from West Ham because you weren't good enough to stay in the prem
You misread me again?

at the minute its all speculation and no one knows exactly what the deal is .

Ladey Bloke was having a pop at us for hand out's yet your lot are after 30 mill from West Ham because you weren't good enough to stay in the prem
You misread me again?

not misread you at all, the point is BLADES FANS have had awarning over wind ups on wednesday threads today, so wednesday fans chucking the bait in does not help. Fact is wednesday are now for a second time begging from the people of this city, example co-op bank account holders , ex directors and formerly, shoppers on fargate to get them out of the bobar THEY have got themselves into.

not misread you at all, the point is BLADES FANS have had awarning over wind ups on wednesday threads today, so wednesday fans chucking the bait in does not help. Fact is wednesday are now for a second time begging from the people of this city, example co-op bank account holders , ex directors and formerly, shoppers on fargate to get them out of the bobar THEY have got themselves into.

The point is mate is that it was a blade chucking the bait with all that hand out crap
Yes we got ourselves in the preverbial due to being over ambitious but at least this board are working at turning it around unlike Allen who was just interested in making money from us

The point is mate is that it was a blade chucking the bait with all that hand out crap
Yes we got ourselves in the preverbial due to being over ambitious but at least this board are working at turning it around unlike Allen who was just interested in making money from us

seriously, how do you think Allen possibly made any money out of you.
according to this thread your about to ask him to take less money than he loaned you. I am a Blade and can remember Allen leaving because the board had no Idea how to run a bussines,plus personal insults from fans. Every wednesday post since agreed with that statement right up to them leaving a few weeks ago.

seriously, how do you think Allen possibly made any money out of you.
according to this thread your about to ask him to take less money than he loaned you. I am a Blade and can remember Allen leaving because the board had no Idea how to run a bussines,plus personal insults from fans. Every wednesday post since agreed with that statement right up to them leaving a few weeks ago.

Mate,Allen is a money fan and has never been a football fan,he took us on because he saw the potential of the club but never really built on it

Mate,Allen is a money fan and has never been a football fan,he took us on because he saw the potential of the club but never really built on it

Where in the league were you when he came and when he left?

Where in the league were you when he came and when he left?

Doesn't mean bugger all where we were when he took over
Look at the difference already made by present board compared to Allen
The bloke owns casino's ffs,biggest money printing machine there is

Christ mate i aint a historian,google it
Look at the difference already made by present board compared to Allen
The bloke owns casino's ffs,biggest money printing machine there is

so you don't know.
your position since allen went has been a lot worse. the board you just got rid of does not include Allen.

so you don't know.
your position since allen went has been a lot worse. the board you just got rid of does not include Allen.

No Alex,i have no idea of the exact position we were in when Allen did a runner
Happy?

No Alex,i have no idea of the exact position we were in when Allen did a runner
Happy?

ok thingy stop getting edgey the nearer the loss to barnsley:hihi::hihi:.

ok thingy stop getting edgey the nearer the loss to barnsley:hihi::hihi:.

as ya said mate
time will tell;)
Pub is calling so gonna get mi arse ready
Get ya cheque book out

seriously, how do you think Allen possibly made any money out of you.
according to this thread your about to ask him to take less money than he loaned you. I am a Blade and can remember Allen leaving because the board had no Idea how to run a bussines,plus personal insults from fans. Every wednesday post since agreed with that statement right up to them leaving a few weeks ago.

how about the interest being charged on the loans? ok, he might lose out now but he didnt know when he took over

Look at the difference already made by present board compared to Allen


What difference have they actually made so far?

This isn't a jibe. All I can personally see is back building relationships with the fans. Yes this is good, but have they started working at chipping away some of the debt? Have they readily made cash aailable for signings (apart from Gray is it?)

The board at the Owls for me still have a lot to prove.

how about the interest being charged on the loans? ok, he might lose out now but he didnt know when he took over

I don't think Allen actually charged any interest on the monies when he was in charge at Wednesday, I'm not sure on the situation now.

Even still...... if that money had been in his bank, he would have accrued interest.

I don;t know much about re-financing multimillion pound overdrafts but i do know one thing-

You don't get anything for free-- especially not from banks.

Would these be the same banks that loaned billions of pounds to folk that had no hope of ever paying them back?

Would these be the same banks that loaned billions of pounds to folk that had no hope of ever paying them back?

folk like sheffield wednesday.

Would these be the same banks that loaned billions of pounds to folk that had no hope of ever paying them back?

Yup!!! that the banks are now persueing the debt through the courts and with debt collectors- its not like they just said "oh go on then- we will let you off this time"

and the same will be done with you guys- if you owe them the money- they will get it back one way or another.

What difference have they actually made so far?

This isn't a jibe. All I can personally see is back building relationships with the fans. Yes this is good, but have they started working at chipping away some of the debt? Have they readily made cash aailable for signings (apart from Gray is it?)

The board at the Owls for me still have a lot to prove.

Well that's a start isn't it? There's no quick fix, unless somebody starts chucking money in straightaway like they did at Chelsea and Man City. The previous regime did so much damage by turning the fans away, particularly in the last couple of years, that bringing them back will in itself chip away at the debt and benefit the club longterm. The new board is also actively involved in this proposed investment which, if it comes off (not getting my hopes up just yet!) would completely rejuvenate the club.


I don't think Allen actually charged any interest on the monies when he was in charge at Wednesday, I'm not sure on the situation now.

Even still...... if that money had been in his bank, he would have accrued interest.

Allen did charge us interest on his loans, and well above the bank's base rate. He made a big show of "funding" some signings, but apart from a few thousand for the 52 year old Mark Robins this was all in the form of loans which added to the club debt and his interest cashback.

Believe me, Allen will have taken far more money out of the club than he put in.

Well that's a start isn't it? There's no quick fix, unless somebody starts chucking money in straightaway like they did at Chelsea and Man City. The previous regime did so much damage by turning the fans away, particularly in the last couple of years, that bringing them back will in itself chip away at the debt and benefit the club longterm. The new board is also actively involved in this proposed investment which, if it comes off (not getting my hopes up just yet!) would completely rejuvenate the club.


do you know anything about the amount of investment?
yes it could be enough to completely rejuvenate the club,
or it could be just enough to keep the wolves away from the door and start to build gradually and sensibly like they have at bramall lane. quick fixes with masses of money are few and far between. there are better football clubs than wednesday on offer and no one is throwing money at them.

What difference have they actually made so far?

This isn't a jibe. All I can personally see is back building relationships with the fans. Yes this is good, but have they started working at chipping away some of the debt? Have they readily made cash aailable for signings (apart from Gray is it?)

The board at the Owls for me still have a lot to prove.



I don't think Allen actually charged any interest on the monies when he was in charge at Wednesday, I'm not sure on the situation now.

Even still...... if that money had been in his bank, he would have accrued interest.

Didn't take it as a jibe robbie boy but if the least that the present board does is build bridges with the fans then i'd say that was making a difference wouldn't you!!!

Yup!!! that the banks are now persueing the debt through the courts and with debt collectors- its not like they just said "oh go on then- we will let you off this time"

and the same will be done with you guys- if you owe them the money- they will get it back one way or another.

Folk who have handed back their house keys because they can't afford the repayments are hardly likely to have any more money stashed away are they? The bank simply reposesses the property and tries to recover as much of the debt as it can, if they continue to persue folk with no assets they can very easily declare themselves bankrupt.

In the case of business debt I thought that I had explained that it can be written off over a period of time. Wednesday have reduced the debt but at a rate that would take another 10 years to clear it completely. My company has had derisory administrators offers of 5 pence in the pound for monies owed to us as creditors, so if we had known beforehand we would certainly have settled for 50% of the debt.

What we are discussing is what the banks likely response to a reduced offer will be, not what certain unitedites would like it to be. The bank will do what is best for the bank, my guess is that they will go for the bird in the hand rather than wait for the possibility of there being a larger one in the bush.

Just my thoughts, so don't jump down my throat, wait and see what the actual outcome turns out to be.

Folk who have handed back their house keys because they can't afford the repayments are hardly likely to have any more money stashed away are they? The bank simply reposesses the property and tries to recover as much of the debt as it can, if they continue to persue folk with no assets they can very easily declare themselves bankrupt.

In the case of business debt I thought that I had explained that it can be written off over a period of time. Wednesday have reduced the debt but at a rate that would take another 10 years to clear it completely. My company has had derisory administrators offers of 5 pence in the pound for monies owed to us as creditors, so if we had known beforehand we would certainly have settled for 50% of the debt.

What we are discussing is what the banks likely response to a reduced offer will be, not what certain unitedites would like it to be. The bank will do what is best for the bank, my guess is that they will go for the bird in the hand rather than wait for the possibility of there being a larger one in the bush.

Just my thoughts, so don't jump down my throat, wait and see what the actual outcome turns out to be.

people who throw keys to their houses back still owe money if the house sale does not reach the debt owed. yes they can go bankrupt but so can wednesday. like you said derisory 5p in the pound offers are from administrators. you may be right about the bank taking a reduced offer rather than wednesday going into administration. so by that way of thinking administration must be a very real alternative to the deal the board offers.
In other words a last resort for the banks share holders.

Didn't take it as a jibe robbie boy but if the least that the present board does is build bridges with the fans then i'd say that was making a difference wouldn't you!!!

It certainly is, but it may come back to bite you IF takeover doesn't happen/the bank doesn't reduce it's debts.

Whilst sponsrship money won't have been much, and it was good PR to give SCH the logo on your shirts next season, it won't really help you out in the long run.

He is doing a lot for fans at the moment, reduced tickets, free tickets, going to away games to chat to fans etc..... however the season ticket holders will want some thanks next season, because as I believe their tickets have cost more than buying on a game to game basis - THIS has to be followed through. If it isn't then there will be a fair few disgruntled fans. If it is and there is no takeover then it could lead to more losses in money.

It's all "ifs and buts" at the moment, the steps forward are good - providing that something is done with regards to your debt and financial situation.

Well that's a start isn't it? There's no quick fix, unless somebody starts chucking money in straightaway like they did at Chelsea and Man City. The previous regime did so much damage by turning the fans away, particularly in the last couple of years, that bringing them back will in itself chip away at the debt and benefit the club longterm. The new board is also actively involved in this proposed investment which, if it comes off (not getting my hopes up just yet!) would completely rejuvenate the club.

I agree, but like I say, they've come in and offered a lot to start with - sometimes you should graudally bring it in rather than just jumping ahead with the first "good" idea to come to them.

It certainly looks better at the moment, but as I said above, they're gonna have to sustain it, otherwise the amount of good work they have done now will come undone.

Allen did charge us interest on his loans, and well above the bank's base rate. He made a big show of "funding" some signings, but apart from a few thousand for the 52 year old Mark Robins this was all in the form of loans which added to the club debt and his interest cashback.

Believe me, Allen will have taken far more money out of the club than he put in.

I must have misheard then and will take your word for that :thumbsup:

people who throw keys to their houses back still owe money if the house sale does not reach the debt owed. yes they can go bankrupt but so can wednesday. like you said derisory 5p in the pound offers are from administrators. you may be right about the bank taking a reduced offer rather than wednesday going into administration. so by that way of thinking administration must be a very real alternative to the deal the board offers.
In other words a last resort for the banks share holders.

No shareholders to worry about, the Co-Op Bank is a mutual.

No shareholders to worry about, the Co-Op Bank is a mutual.

Thought the co op was owned by it's customers.

Thought the co op was owned by it's customers.

Yes, that's what a mutual is. :confused:

Yes, that's what a mutual is. :confused:

why confused I was only agreeing with you.

Yup!!! that the banks are now persueing the debt through the courts and with debt collectors- its not like they just said "oh go on then- we will let you off this time"

and the same will be done with you guys- if you owe them the money- they will get it back one way or another.

millions of people owe the banks money and the bank dos`nt always get it back

millions of people owe the banks money and the bank dos`nt always get it back

see earlier posts on this Mr benn.

but they either get it back or they go bankrupt (or into administration), they won't just wrote off millions in debt from a functioning business.

see earlier posts on this Mr benn.

but they either get it back or they go bankrupt (or into administration), they won't just wrote off millions in debt from a functioning business.

correct ,and this could be the reason why the bank has agreed to write off a large sum. the thinking being that if wednesday agree to pay off the remainder of the debt in full on completion of a takeover ,the bank will then have funds to play with and also be shut of a bad situation at Hillsbro .

correct ,and this could be the reason why the bank has agreed to write off a large sum. the thinking being that if wednesday agree to pay off the remainder of the debt in full on completion of a takeover ,the bank will then have funds to play with and also be shut of a bad situation at Hillsbro .

the bank has not agreed to do anything yet. The proposal also did not say wednesday would repay the other half , it said the people taking over would guarantee the debt. meaning they wont guarantee the full debt , doesnt sound like the investment will be very substantial.

see earlier posts on this Mr benn.

but they either get it back or they go bankrupt (or into administration), they won't just wrote off millions in debt from a functioning business.

But that's just what they do, they (not the Co-Op Bank I should add) bought sub prime debt from US lenders and have quite simply written it off. Car manufacturers are selling cars at less than their production costs in order to re capitalise, they owe money to their bankers who are willing to write a large proportion of it off of their books.

Banks simply don't want debt on their books anymore. I have attempted to explain the 100% write off method but you continue to ignore me. I have spent a very long time working in the financial sector and can assure you that you couldn't make up some of the decisions made by our so called flagship banks.

This recession couldn't have come at a better time for SWFC, players wages will be trimmed down when contracts come up for renewal. Gary Neville's impending £30,000 p/w wage decrease comes to mind and Man U are hardly struggling. The bank will naturally go for all it can get but will, IMHO settle for a sum of far less than that outstanding. All that the Co-Op Bank has on it's mind at this moment in time is its impending merger with the Britannia Building Society, watch this space.