London, July 31, 2020 (AFP) - Sheffield Wednesday will be deducted 12 points for the 2020-21 Championship season after being found guilty of breaching the English Football League's (EFL) financial rules.
An independent panel deemed the club should not have included profits from the sale of the club's Hillsborough Stadium to owner Dejphon Chansiri in financial statements for the period ending July 2018.
The sale helped Wednesday stay within the EFL profit and sustainability regulations that dictate Championship teams are permitted to lose a maximum of £39 million ($51 million) over three years.
Wednesday said they are "extremely disappointed" with the verdict but welcomed the decision not to impose the penalty for the recently completed 2019-20 season, which would have resulted in relegation to League One.
The Owls finished 16th in the Championship, eight points clear of the drop zone.
"An independent disciplinary commission, appointed under EFL regulations, has ruled that Sheffield Wednesday will receive a 12-point deduction for breaching the league's profitability and sustainability rules for the three season reporting period ending with season 2017-18," read an EFL statement.
"The sporting sanction will take effect in season 2020-21."
Wednesday were found not guilty of breaching their "duty of utmost good faith to the EFL by deliberately concealing information".
"The club is extremely disappointed that the commission has imposed a 12-point deduction to be applied next season and awaits the written reasons for this decision," Wednesday said in a statement.
"The club welcomes the decision that the commission cleared Sheffield Wednesday of the charge of acting in bad faith in its dealings with the EFL. Further, the commission decided not to apply a 12-point deduction this season, thereby imposing relegation."
Wigan were relegated to League One after a 12-point penalty for entering administration was imposed on the final standings for the 2019-20 season.