A study has ranked Sheffield Wednesday as the least sustainable club in Europe in 2023.
A recent study by Off The Pitch has ranked Sheffield Wednesday as Europe’s least sustainable club in 2023, based on three metrics.
The first metric is the EBITDA-margin (earnings before interest, tax, depreciation, and amortisation – essentially the core business rather than player sales and other one-off items).
The second is return-on-assets; how much the club is earning compared to how much it owes (player trading and so on).
And the third metric is equity ratio; how much the club’s assets are funded by its owners compared to how much is funded by debt.
Norwegian outfit Bodo/Glimt have been ranked as Europe’s least sustainable club in 2023, followed by Norwegian rivals Molde FK.
Manchester City are the only English club in the top 10, coming in 3rd, followed by Fiorentina in 4th, and Danish outfit Silkeborg IF in 5th.
Football finance expert Adam Williams gives verdict on Sheffield Wednesday
Sheffield Wednesday owner Dejphon Chansiri has faced widespread criticism over the past few years, particularly in the last year.
The Thai businessman has been at the helm for nine years now. During that time, Sheffield Wednesday have dipped in and out of the Championship, narrowly escaping relegation last season thanks to manager Danny Rohl and the players.
Discussing the recent study by Off The Pitch, Football Finance Expert Adam Williams gave his verdict on Chansiri and Sheffield Wednesday’s poor financials.
Williams told Sheffield Wednesday News: “Wednesday have averaged an annual loss of £11.3m over the last decade, with a cumulative deficit of over £124m in that period.
“The only year they posted a profit in that time came in 2019, when they sold the stadium to Chansiri for £38m.
“They were effectively taking money out of one pocket and putting it into the other with that move.
“It was the kind of accounting sleight of hand that we’ve become used to seeing in the age of Profit and Sustainability Rules.
“Yes, most clubs in the EFL lose money. But Wednesday are ranked so poorly because of their baseline metrics.
“It speaks to the club’s abysmal asset management that they are ranked the least sustainable despite being one of the Championship’s biggest earners in terms of matchday income.”
Are times changing at Sheffield Wednesday under Dejphon Chansiri
Chansiri has rightly had his critics at Sheffield Wednesday, largely due to his poor financial planning and management, and his rash decisions and outbursts aimed at fans.
Sheffield Wednesday’s woeful start to last season was down to the lacklustre appointment of Xisco Munoz and the equally lacklustre summer transfer window.
But since Rohl’s arrival, Sheffield Wednesday’s fortunes have turned up. Not only has Rohl improved matters on the pitch, but in a bid to keep Rohl in place for the longer-term, Chansiri and Rohl are looking to improve matters off the pitch.
After signing a three-year deal, Rohl has brought in three new signings in Ben Hamer, Max Lowe, and Yan Valery.
There’s also rumoured improvements to the training ground and facilities, which Rohl previously stated that he wanted doing during this pre-season.
The tag of Europe’s least sustainable club is no easy feat, and it highlights the desperate financial situation that Sheffield Wednesday are still in.
And this £124million reveal from Williams certainly brings home the financial devastation that has helped to land Sheffield Wednesday as Europe’s least sustainable football club.
There must now be a focus towards youth recruitment and development, as that’s arguably the best way that clubs in the Football League can become more profitable, before reaching the Premier League.
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