Sheffield Wednesday Takeover in Limbo as EFL Investigates Funding Sources
Sheffield Wednesday's proposed takeover has hit a significant delay as the English Football League (EFL) conducts a thorough examination of the funding sources behind the preferred bidders. The consortium, granted exclusive negotiating rights on Christmas Eve by the club's administrators, faces scrutiny over whether their capital originates from gambling and crypto-gambling operations.
EFL's Owners' and Directors' Test Under the Microscope
The EFL is currently assessing the bid from professional poker player James Bord and crypto-gambling casino owner Felix Roemer to ensure compliance with its owners' and directors' test (ODT). This process is expected to be time-consuming, with sources indicating that due diligence is still in its early stages. An EFL spokesperson confirmed that the ODT process is ongoing, highlighting the league's commitment to rigorous financial vetting.
Should the assessment extend beyond the season's end, the newly established Independent Football Regulator will assume responsibility. This regulator possesses enhanced powers of investigation, sanction, and enforcement, which could further complicate the takeover if unresolved issues persist.
Funding Concerns and Gambling Connections
The Bord/Roemer consortium has provided evidence of sufficient funds to complete the proposed £30m-plus purchase and cover three years of operating costs, backed by a multimillion-pound deposit. However, the involvement of gambling-related income raises potential hurdles. While other clubs like Brighton and Brentford operate under Football Association (FA) dispensations for gambling-linked ownership, Bord and Roemer would need to secure similar agreements, which is not guaranteed.
James Bord's wealth is largely tied to reported poker winnings of approximately £3m and roles in data-driven betting businesses. Felix Roemer's funding stems from his ownership of Gamdom, a crypto-gambling casino with a history of regulatory fines in Europe for unlicensed activities. Their advisers claim the bid is privately funded through technology and analytics investments, but details remain scarce.
Broader Implications and Club Stability
Clive Betts, Labour MP for Sheffield South East, has expressed concerns about the volatility of gambling-based funding and urged the EFL to conduct a meticulous process. He emphasised the need for sustainability, noting that the regulator will likely inherit these owners if the takeover proceeds. The administrators, Begbies Traynor, remain confident in their preferred bidder but have taken precautionary measures, including player sales to ensure cashflow, such as Barry Bannan's move to Millwall and Yisa Alao's transfer to Chelsea.
This situation underscores the increasing scrutiny on football club ownership, particularly with the advent of the Independent Football Regulator. The outcome could set a precedent for how gambling-linked investments are handled in the sport, affecting not only Sheffield Wednesday but future takeovers across the league.
