Sheffield Wednesday may start next season with a 15-point deduction as it negotiates a takeover with a US consortium.
Sheffield Wednesday has selected Arise Capital Partners as the club’s new preferred bidder following the withdrawal of the previous consortium.
The club announced today (11 March) it has entered into an exclusivity agreement with the US-based consortium, headed by David Storch, after the group provided a deposit and proof of funds to complete the takeover.
“We are thrilled and excited to take this important step toward stewardship of this historic football club,” Storch said.
“As we continue through this process, we are looking forward to working with the local community, engaging transparently with fans and embarking together on this journey to restore Sheffield Wednesday to its rightful place.”
Administrators noted the new offer is not as strong as the previous proposal, which collapsed last month. The former preferred bidder, a group led by American poker player James Bord, withdrew after reassessing the club’s finances and concluding its valuation was “significantly lower” than the £30m ($40.5m) bid they had originally submitted.
The Storch consortium’s offer also falls short of the amount required to pay creditors 25p for every pound owed. Former owner Dejphon Chansiri, the club’s main creditor, reportedly loaned Sheffield Wednesday £60m, so £15m would still be owed if the consortium goes through, which could mean a 15-point deduction next season in League One.
“Whilst the offer does not deliver the same level of creditor return as the previous proposed transaction, it nevertheless represents the best available outcome currently achievable and provides a clear pathway toward securing the club’s long-term future,” a club statement read.
The new consortium must still pass the league’s owners’ and directors’ test, though the English Football League has pledged to move as quickly as possible.
Meet Sheffield Wednesday’s potential new owners
Arise Capital Partners, the US-based group behind the new bid, is led by David Storch, an American aviation executive and billionaire investor.
Storch has spent decades at AAR Corp, a global aviation services company, joining in the late 1970s and rising to CEO and Chairman over the years.
He is joined by his son, Michael Storch, who has held the position of Managing Director of Arise Capital Partners since 2022. Michael spent 12 years at AAR Corp under his father’s leadership and began his career in finance as a credit analyst at The PrivateBank and Trust Company.
The third member of the consortium is Tom Costin, who manages investments alongside the Storch family and co-founded Owls Ventures. Costin is also an investor in Blue Crow Sports Group, which holds stakes in football clubs including Cancun Futbol Club in Mexico, Leganes in Spain, and Le Havre AC in France.
Although the consortium’s offer is lower than Bord’s previous bid, the group has significant financial resources, with its wider investment network reportedly managing over $200bn in assets to support the club.
“We are absolutely committed to delivering a brighter future for our fans and bringing joy back to Hillsborough,” said David Storch.
