Sheffield Wednesday suffer fresh EFL sanction blow - it could complicate Barry Bannan contract talks | OneFootball

Sheffield Wednesday’s new wage cap could complicate contract renewals

Further details are emerging regarding Sheffield Wednesday’s incoming spending ban from the EFL.

The league placed the Owls under an embargo and three-window fee restriction on Wednesday, following breaches of regulations relating to payment of staff and player wages.

A number of Wednesday’s first team players are still awaiting their wages for May, with only some having been paid at the time of writing.

The situation also triggered a registration embargo that prevents the club from signing any new players - free or otherwise - until all outstanding payments are settled in full.

Fresh Sheffield Wednesday embargo development has potential dire implications for Barry Bannan, Callum Paterson new contracts

While the club has given formal notice of its intention to appeal the EFL’s decision, further complications have now surfaced.

A report from The Sheffield Star indicates that a wage cap of around £7,000 per week has also been enforced for any new signings.

This adds another layer of difficulty for the club’s recruitment strategy, with the Owls’ 31-man retained list being bolstered heavily by youth players.

Captain Barry Bannan, Callum Paterson, and Akin Famewo are among several senior players whose contracts are set to expire at the end of this month. The trio have been offered new deals by the club in a bid to retain them.

However, it remains unclear whether these potential contract renewals would be subject to the £7,000 per-week wage cap currently in place for new Wednesday signings.

As they would technically be re-signing rather than joining from elsewhere, there is some ambiguity over how the EFL will interpret their status under the embargo restrictions, and discussions are ongoing as to how this will be applied.

Takeover talks intensify as Mandaric and Shaw launch bids to save Sheffield Wednesday

The delay in payment of staff and player wages and embargo has not only disrupted transfer plans but also reignited criticism of Owls owner Dejphon Chansiri.

Local MP Clive Betts has renewed calls for him to sell the club, accusing him of holding it “hostage.”

Amid this instability, former owner Milan Mandaric has announced his intention to return with a “rescue” package to try and buy back the club.

Now 86, Mandaric told BBC Radio Sheffield he would fly into the UK next week to seek talks with Chansiri and attempt to broker a deal to “save the club from being destroyed.”

Meanwhile, Sheffield-born US investor Adam Shaw is also pushing ahead with plans to take over. Leading a 16-strong consortium including MLB stars and a former Premier League player, Shaw has already seen two bids rejected by the current Wednesday chairman.

As two takeover bids gather momentum and pressure on the current owner intensifies, the coming weeks may prove pivotal - not just in shaping the future of Sheffield Wednesday, but in determining whether the club can survive its present crisis.