Sheffield Wednesday’s outgoing owner, Dejphon Chansiri, had hoped to secure a major payout from owning Hillsborough Stadium, but the intervention of administrators now appears likely to limit any financial return.
When a football club enters administration, there are always casualties. Administration is essentially an admission that a company can no longer meet its financial obligations, and it is usually the final step before bankruptcy. As a result, many creditors inevitably lose out.
Because Wednesday are a football club, EFL rules offer them some protection. To avoid a 15-point penalty next season, the club must guarantee unsecured creditors at least 25 pence per pound owed — a threshold they are expected to meet.
However, Wednesday were not the only business placed into administration on October 24. S3 Holdings — the company that owns Hillsborough and is also controlled by Chansiri — entered administration as well. If Chansiri hoped to personally cash in through the stadium sale, that plan may collapse too.
Journalist Alan Nixon revealed on Patreon that the administrators’ valuation of Hillsborough is considerably lower than the £60 million Chansiri expected. Insolvency experts Begbies Traynor are handling the valuation, and their figure is significantly below the Thai businessman’s asking price. According to Nixon, this lower valuation is causing problems for potential buyers of the club, who do not share Chansiri’s view of what the stadium is worth. He adds that while Chansiri “likely has a claim that stands up,” the settlement of the stadium’s valuation will be a major obstacle.
Stadium valuation is rarely straightforward — and Chansiri does not have a good track record in this area. Hillsborough is ageing and in need of major upgrades. Its location is not especially valuable, and if a property developer purchased the land, the stadium would likely be demolished. In some respects, the site may be worth little more than its bare land value.
Yet Hillsborough also carries enormous intangible value for Wednesday supporters, and replacing it would cost hundreds of millions. Commercial valuations often depend on purpose, condition, future costs, and buyer appetite.
Chansiri, however, is known for overpricing Sheffield Wednesday assets. Earlier this year, it emerged he valued the club at £100 million — a figure that stalled genuine takeover talks. That valuation appears to have included the £60 million he expected from selling Hillsborough, matching the amount he paid for it when he bought the stadium during a controversial accounting manoeuvre to avoid EFL sanctions.
But property value does not work that way. The stadium’s current market value depends on professional assessment, not what Chansiri once spent or wants to recoup. Given Hillsborough’s deteriorating condition, it is hardly surprising buyers are unwilling to meet his valuation.
Administrators will follow established procedures to determine a fair price. Chansiri could challenge their assessment, but he would need compelling evidence to override their valuation — something his previous decisions suggest is unlikely.
Ultimately, the probable outcome is that Chansiri will receive far less than he anticipated. And as every investor knows, asset values can fall just as easily as they rise.
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