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Sheffield Wednesday's current difficulties constitute a "major concern" and the football regulator is seeking powers to examine team situations in such situations, its new chair David Kogan has declared.

In a wide-ranging interview, the chairman, who was appointed on Monday, showed understanding towards supporters of the Owls.

The chairman convened with four supporters' associations representing the South Yorkshire club in recent days.

The Championship side have been facing challenges both on and off the pitch in this season, with the club failing to pay players on time on five separate occasions, including in September.

"Obviously the club has become a serious issue for football authorities and a major challenge for the sport," the regulator explained.

"Wednesday stands as one of the historic institutions for football in England and recently we have met Sheffield Wednesday supporters' groups.

"Our aim is to acquire the ability... which will permit us to bring Wednesday and comparable cases submitted for our review if they warrant scrutiny and dealt with."

Financial Struggles and Leadership Concerns

The club's controversial proprietor the Thai businessman suggested earlier this year he would be willing to sell up at their home ground, but he has been unable to finalize an agreement with potential new owners.

Missed wage deadlines on time in earlier this year led to sanctions by the football authorities in mid-year, preventing the club from carrying out any transfers or loans for the next three transfer windows, although the ban was rescinded in late summer.

Official's Viewpoint

The regulator explained: "The position was created for the fans of Sheffield Wednesday, teams facing challenges where people are committed to a community organization that has represented their community in many cases.

"I have absolute sympathy for the club's situation, as I do for all the clubs that in modern times have encountered failure, or approached financial ruin, for reasons that have nothing to do with the fans themselves."

Questioned about whether the oversight body could require an owner to sell a club if they are considered unfit, Kogan said: "When asking whether 'would we intervene in the final instance?', the reply is once we collect the information and know what's going on, we will."

But Kogan stressed that requiring chairmen to relinquish clubs would be considered the final option and the authority would rather to cooperate with proprietors.

"The last thing what we want to do is start getting involved with an specific team, an individual owner, without being in a position to cooperate with that chairman to fix the challenges confronting the team and the chairman's encountering," the chairman stated.

"However, realistically, when you look back over the history of the game, over the past few decades there have been certain proprietors, few in number, but some who have been irresponsible in the manner they have operated their teams and eventually decline to assume obligation for the future."

'Errors may undo substantial development'

Kogan met with representatives from 110 clubs to explain the responsibilities of the regulator on Wednesday and stated it constituted a "progressive gathering" with a "significant participation" from the grassroots to elite level.

"This position carries substantial significance, because if we get it wrong, if the world of football gets it wrong, the extraordinary progress that's been made might evaporate swiftly," the chairman stated.

"Such an outcome is universally undesirable in the terms of English football is a huge success story - we've got to keep it going.

"There's an enormous amount of money flowing into the game and has been invested for the last 20 or 25 years, because there are no assurances it will continue to come into football, which is part of the rationale behind I think we have to take a really clear view on risk and of course, of the next two or three years."

Elite Division Worries

Top flight officials resisted the creation of a regulator because of concerns about detrimental effects on the top-flight's competitiveness, but Kogan said: "I completely endorse the prosperity and expansion as an commercial operation of the elite league.

"Being fully aware of the apprehension regarding damaging the Premier League as a premium product of the nation. But at the same time, if you engage with division representatives after today's meeting, they would have had a significant degree of comfort -and, in fact, they have been telling us in private they have a significant confidence."

Partisan Associations

Kogan is still facing a "full inquiry" by the official appointments authority after he acknowledged providing funds to the opposition group in recent years.

The chairman contributed funds to Culture Secretary Lisa Nandy's leadership campaign, along with that of the government leader.

"I have been entirely transparent regarding my previous political affiliation [with Labour], and that political affiliation came to an end the day the select committee approved my appointment," the regulator explained.

"I currently have no participation in any sort of politics."