Sheffield Wednesday Football Club has confirmed it has rejected an offer to invest in their relegated Championship side, from American group Club 9 Sports.
In a statement on the club’s website the League One bound side revealed: ''Club 9 wanted to change the terms already agreed and wished to make a lower investment into Sheffield Wednesday.
''The proposal put forward by Club 9 this week was for an initial £2m investment into Sheffield Wednesday Football Club. After expenses this would equate to an investment of no more than £1.6m. For this, Club 9 wished to gain control of circa 40% of the company's total share capital, by way of new shares, and to have majority control of the board
''Club 9 also indicated that as part of any investment they would charge the company £420,000 per annum in management fees.”
"The board do not believe that the initial investment is significant enough to warrant giving away control of the board or of circa 40% of the company's total share capital.
"We do not believe that a company should pay inflated fees at this level. This position is one that is shared by the Co-operative Bank and as such the proposal has been rejected.”
An initial agreement was made in March 2009. It is believed that Chicago based Club 9 reduced their original offer after one of their backers Andell Holdings, withdrew their financial support.
However The Owls are still considering other options and added: "The board continues to engage with other serious potential investors."