Sheffield Wednesday named Europe’s least sustainable club amid ‘abysmal’ £124m revelation

The first measure is the EBITDA margin (earnings before interest, tax, depreciation and amortization – essentially the core business, rather than player sales and other one-offs).

The second is return on assets; how much the club earns compared to what they owe (player trading and so on).

And the third measure is the equity ratio; how much the club’s assets are financed by its owners compared to how much it is financed by debt.

Norwegian outfit Bodo/Glimt were ranked as the least sustainable club in Europe in 2023, followed by Norwegian rivals Molde FK.

Manchester City is the only English club in the top 10, taking 3rd place, followed by Fiorentina in 4th place and Danish side Silkeborg IF in 5th place.

Sheffield Wednesday owner Dejphon Chansiri has faced widespread criticism in recent years, particularly in the last year.

The Thai businessman has been at the helm for nine years. In that time, Sheffield Wednesday have been in and out of the Championship, narrowly escaping relegation last season thanks to manager Danny Rohl and the players.

Discussing Off The Pitch’s recent study, football finance expert Adam Williams has given his verdict on Chansiri and Sheffield Wednesday’s poor financial situation.

Williams told the Sheffield Wednesday News: “Wednesday has made an average annual loss of £11.3m over the past decade, with a cumulative deficit of more than £124m over that period.

“The only year they made a profit in that period came in 2019 when they sold the stadium to Chansiri for £38m.

“They were effectively taking money out of one pocket and putting it in the other with that move.

“It was the kind of accounting delirium we’ve grown accustomed to seeing in the age of profit and sustainability rules.

“Yes, most clubs in the EFL are losing money. But Wednesdays are ranked so poorly because of their core values.

“It speaks to the club’s abysmal asset management that they are ranked the least sustainable despite being one of the Championship’s top earners in terms of matchday revenue.”

Times are changing at Sheffield Wednesday under Dejphon Chansiri

Chansiri rightly had his share of criticism at Sheffield Wednesday, largely due to poor planning and financial management, as well as his poor decision-making and outbursts directed at fans.

Sheffield Wednesday’s woeful start to last season was down to the lackluster appointment of Xisco Munoz and an equally lackluster summer transfer window.

But since Rohl’s arrival, Sheffield Wednesday’s fortunes have taken off. Not only did Rohl improve things on the field, but in an attempt to keep Rohl long-term, Chansiri and Rohl is looking to improve things off the field.

After signing a three-year deal, Rohl brought in three new signings in Ben Hamer, Max Lowe and Yan Valery.

Also rumored are improvements to the practice field and facilities, which Rohl has previously said he wants to do this preseason.

The tag of Europe’s least sustainable club is no easy feat and highlights the desperate financial situation Sheffield Wednesday still find themselves in.

And this £124m revelation from Williams certainly brings home the financial devastation that has helped land Sheffield Wednesday as the least sustainable football club in Europe.

They now need to focus on recruiting and developing youngsters as this is probably the best way for Football League clubs to become more profitable, before reaching the Premier League.

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