'We will play a key role in football's future' - football oversight chief David Kogan
The team's current difficulties represent a a "significant problem" and the new football authority is aiming to acquire authority to look into club affairs in similar circumstances, the recently named head the regulator has stated.
In a wide-ranging interview, the regulator, who was recently selected, voiced concern towards Wednesday's fanbase.
The chairman convened with four fan organizations connected to the Championship side this week.
The Championship side have been struggling on and off the field in this season, with the club failing to pay players on time on five separate occasions, including in the autumn.
"Obviously the club has become a significant problem for EFL and a substantial concern for English football," Kogan told.
"Wednesday stands as one of the iconic names for English football and recently we have met fan representatives.
"We're now looking to get powers... which will enable us to take the club and similar situations referred to us if they warrant scrutiny and addressed."
Monetary Issues and Leadership Concerns
The team's struggling chairman the Thai businessman stated during the off-season he would be willing to sell up at their home ground, but he has been unable to finalize an agreement with potential new owners.
Failure to pay player wages on time in March and May resulted in restrictions being imposed by the football authorities in mid-year, stopping Wednesday from completing any transfers or loans for the next three transfer windows, although the ban was rescinded in the end of the transfer window.
Official's Viewpoint
The regulator explained: "The job [of the regulator] is there for the fans of Sheffield Wednesday, other clubs in similar situations where supporters are loyal to a community organization that has existed throughout their lifetimes in multiple situations.
"I completely understand the team's plight, as I do for all the clubs that in modern times have encountered failure, or approached financial ruin, for causes separate from the supporters."
Inquired if the authority might compel an owner to sell a club if they are deemed unsuitable, the regulator answered: "Should the inquiry concern 'would we intervene in the final instance?', the answer is once we assemble the facts and understand the situation, we will."
But the chairman emphasized that requiring chairmen to relinquish clubs would be considered the final option and the authority would rather to work with them.
"The final option we would consider is commence engagement with an individual club, an individual owner, without being in a position to cooperate with that owner to try and resolve the challenges confronting the team and the owner's facing," the regulator explained.
"But the truth is, when you look back over the history of football, over the recent generations there have been certain proprietors, a small minority, but certain individuals who have acted carelessly in the way which they've been managing their clubs and ultimately decline to assume obligation for the coming years."
Owls fans have been demonstrating against the current proprietor this season
'Errors may undo substantial development'
The regulator engaged representatives from 110 clubs to lay out the remit of the oversight body this week and stated it constituted a "progressive gathering" with a "high level of engagement" from the lower divisions to the top flight.
"This position carries substantial significance, because if we get it wrong, if the world of football gets it wrong, the remarkable development accomplished necessary will vanish rapidly," the regulator warned.
"And that's what nobody wants in the context of the English game is a major achievement - we need to continue the progress.
"Considerable investment coming into football and has been channeled for the last 20 or 25 years, because there's no guarantee it will keep flowing into the sport, which is part of the rationale behind I think we have to maintain a focused outlook on potential dangers and naturally, of the next two or three years."
Premier League Concerns
Elite division representatives objected to the creation of a regulator because of fears of a negative impact on the elite division's competitive balance, but the regulator stated: "I'm absolutely committed to the success and growth as an economic entity of the top division.
"As someone who appreciates the concern of undermining the top flight as an elite competition of the nation. But at the same time, if you engage with division representatives after this week's discussion, they would have had a significant degree of comfort -and, in fact, they have been informing us confidentially they have a considerable comfort."
Ideological Links
The regulator remains subject to a "full inquiry" by the Commissioner for Public Appointments after he disclosed making donations to the opposition group in the past.
The 68-year-old contributed funds to Culture Secretary Lisa Nandy's leadership campaign, along with that of the now Prime Minister Sir Keir Starmer.
"I have been entirely transparent regarding my past party membership [with Labour], and that ideological connection terminated the day the official body endorsed my nomination," the regulator explained.
"I am no longer involved in any type of partisan engagement."
