Clarity on Sheffield United points deduction warning as Blades insist 'business as usual' amid ownership row
A former Premier League chief executive has raised the prospect of a points deduction for Sheffield United, but the current position is more nuanced than first appears as the EFL continues to assess the ownership dispute.
In a summer that Sheffield United's coaching staff hoped would be dominated by news of a major squad rebuild, the biggest talking points have instead come off the pitch amid the ongoing wait for an influx of new signings. Romelle Donovan is the Blades’ only fresh face at present.
United have also re-signed Jairo Riedewald, after initially releasing him at the end of June, but Chris Wilder’s squad still desperately needs support in certain key areas, including out wide, right-back and centre-half.
Instead recent talk has been dominated by a winding-up petition issued by former owner Prince Abdullah, against current owners Steven Rosen and Helmy Eltoukhy’s COH Sports Bidco company over alleged unpaid instalments.
Rosen made a rare United-related appearance at their training camp in Spain, where he was pictured speaking to boss Wilder and chief executive Stephen Bettis. All look relaxed enough in the images posted to United’s official social media account under the caption: “Business as usual.”
But Unitedites’ uncertainty will not have been eased by a report from Football Insider today in which Keith Wyness, the former Everton chief executive and current football finance commentator, suggested that United could face a points deduction if the EFL find that they have gained a "sporting advantage” by not paying the instalments owed.
"This is a really messy, difficult situation. I've been looking into this one in a bit more detail, and COH have resold shares in that company to another shell company. It's a very strange situation," he said.
"The key to it from the football side is if they have stopped making payments that they are due and they've used that in terms of running the football club, then they've gained a sporting advantage.
"That's the whole issue that we've got here. And therefore there could be a points deduction. And that's where the EFL are going to be focusing on that, as to where is the money that should have gone to the sellers, where has that money gone?
"Has there been a sporting advantage gained because they didn't make those payments, which they were legally due to make? I do expect something to be happening pretty quickly, and either they're going to have to pay up the money they owe, or else the club's going to find itself in trouble.”
The interesting distinction here is that the winding-up petition has been filed against COH Sports Bidco rather than United itself as a football club. Bidco was the previous holding company for the club before that was changed to 1919 Partners LLC earlier this summer.
Our understanding is that while the EFL are aware of the situation, and have spoken to both COH and the prince’s camp to get their observations, the prospect of sporting sanctions is currently some way off.
The independent regulator is also keeping a close eye on developments, with COH now given the opportunity to respond to the petition. The prince’s camp have hired renowned barrister Nick De Marco to represent them.