'Our role is integral to football's future' - football oversight chief David Kogan
The team's ongoing struggles are seen as a "significant problem" and the new football authority is seeking powers to investigate clubs in similar circumstances, its new chair the regulator has declared.
In a wide-ranging interview, the regulator, who was named to the position this week, voiced concern towards supporters of the Owls.
Kogan met with four fan organizations representing the South Yorkshire club in recent days.
The Championship side have been struggling on and off the field in this season, with the club missing wage payments on several different times, including in last month.
"Clearly Sheffield Wednesday has been a significant problem for EFL and a substantial concern for English football," the chairman stated.
"Sheffield Wednesday is one of the great brands for football in England and this week we have met Sheffield Wednesday supporters' groups.
"We are seeking authority... which will allow us to have Sheffield Wednesday - and other clubs referred to us if they need to be investigated and dealt with."
Financial Struggles and Proprietorship Status
Wednesday's embattled owner the Thai businessman stated during the off-season he would be open to selling the club at Hillsborough, but he has not been able to secure a deal with potential new owners.
Delayed salary payments on time in earlier this year resulted in restrictions being imposed by the English Football League (EFL) in summer, stopping Wednesday from completing any recruitment activities for the following recruitment periods, although those limitations were removed in August.
Regulator's Perspective
The regulator explained: "The job [of the regulator] is there for the fans of Sheffield Wednesday, teams facing challenges where fans are dedicated to a regional establishment that has represented their community in many cases.
"I have absolute sympathy for the team's plight, as I do for all the clubs that over recent decades have faced collapse, or nearly ceased operations, for reasons that have nothing to do with the supporters."
Questioned about whether the oversight body could require an owner to sell a club if they are deemed unsuitable, the chairman responded: "If your question is 'would we intervene in the final instance?', the response would be once we assemble the facts and know what's going on, we will."
But Kogan stressed that compelling proprietors to divest clubs would be considered the final option and the regulator would prefer to cooperate with proprietors.
"The final option we would consider is start getting involved with an specific team, an specific proprietor, without being able to work with that chairman to fix the issues that the club's facing and the owner's facing," Kogan said.
"However, realistically, when you review the record of the game, over the recent generations there have been some owners, not many, but some who have been irresponsible in the manner they have operated their teams and eventually don't wish to take responsibility for the future."
Owls fans have been voicing opposition to owner Dejphon Chansiri this season
'If we get it wrong, extraordinary progress vanishes'
Kogan met with representatives from 110 clubs to lay out the remit of the authority recently and maintained it represented a "forward-thinking discussion" with a "significant participation" from the lower divisions to the top flight.
"It's a job that's actually really important, because if errors are made, if the world of football gets it wrong, the remarkable development accomplished necessary will vanish incredibly quickly," the chairman stated.
"This represents everyone's worst fear in the realm of domestic football is a huge success story - we must maintain momentum.
"Substantial financial resources entering the sport and has been channeled for the recent generations, because there are no assurances it will continue to come into football, which is one of the reasons why I think we have to take a really clear view on potential dangers and naturally, of the coming seasons."
Premier League Concerns
Elite division representatives objected to the formation of an authority because of apprehensions regarding adverse consequences on the elite division's competitive balance, but the chairman responded: "I'm absolutely committed to the achievement and development as an economic entity of the Premier League.
"I of all people understand the worry about compromising the top flight as an elite competition of the nation. But simultaneously, if you talk to the Premier League after today's meeting, they would have had a substantial amount of confidence -and, indeed, they have been advising us privately they have a high level of reassurance."
Partisan Associations
Kogan is still facing a "full inquiry" by the Commissioner for Public Appointments after he revealed he contributed money to the Labour Party in the past.
The official donated money to government minister Lisa Nandy's leadership campaign, along with that of the government leader.
"I have been entirely transparent regarding my past party membership [with Labour], and that ideological connection terminated the day the parliamentary committee confirmed my selection," the chairman stated.
"I am no longer involved in any sort of politics."
