US businessman David Storch has completed his takeover of Sheffield Wednesday and the EFL has waived the club's additional 15-point deduction.
The announcement comes after weeks of talks between Storch, his Arise Capital Partners consortium and administrators, and secures the club's future following their relegation to League One.
Previous owner Dejphon Chansiri was forced out of the club when it entered administration in October following multiple breaches of financial regulations.
The club has faced two separate points deductions worth 18 points over the course of the season and finish a stormy campaign at home to West Brom on Saturday bottom of the Championship table on -3 points.
The Storch takeover signals the start of a new era, which will crucially begin without another points deduction after the EFL ruled "it would not be appropriate to impose" it following the club's exit from administration.
The club will remain "under a budget restriction for the next two seasons" but will "be permitted to sign new players in accordance with the terms of a business plan" agreed by Storch and the EFL.
Storch said: "Sheffield Wednesday deserves stability, ambition and a clear direction. That is what we are here to deliver.
"We know trust must be earned. We are humbled by the opportunity, we take this seriously as stewards of this incredible club - we will approach this with humility, transparency and a long-term commitment to doing things the right way.
"To our supporters: thank you for your incredible passion and loyalty. It was a privilege to share this moment with many of you at Hillsborough, and we look forward to continuing this journey together.
"Today, this club is reborn - and we look forward with determination to the work that lies ahead."
EFL CEO Trevor Birch added: "Over this period there has been much discussion in relation to the many and varied issues which have arisen, but throughout the process the League has remained focused on engaging with the relevant parties to try and find a solution to secure a stable and sustainable future for Sheffield Wednesday, whilst always acting in the best interests of the EFL and the game more generally."
Storch and his Arise Capital Partners were not prepared to pay previous owner Chansiri 25 per cent of the £60m loans he had put into the club, and were therefore in breach of EFL regulations and due a 15-point penalty for League 1.
But Your Site News understands Storch and administrator Begbies Traynor made significant representations to the EFL in an attempt to persuade them to waive the deduction.
They explained their attempts to negotiate a compromise with Chansiri had been met with inflexibility from the other side and Storch promised to invest heavily in the stadium and other poorly-maintained infrastructure.
This convinced the EFL, which has discretion to overrule penalties in exceptional circumstances, that Wednesday should not be punished further next season.
