Sheffield United co-owner's insolvency defence raises fresh question over EFL's 'fit and proper' rules
Sheffield United co-owner Steven Rosen has sought to dismiss concerns over his position under the EFL’s owners’ and directors’ test, despite having been a director of two companies that subsequently entered insolvency proceedings.
Steven Rosen, the Sheffield United co-owner, has sought to dismiss suggestions that his position at Bramall Lane could be affected by EFL regulations - despite the league's own rules appearing to suggest the possibility is very real.
The American businessman is facing fresh scrutiny from both the EFL and the Independent Regulator over his ownership of the Blades, which took another turn earlier this year when the company he and business partner Helmy Eltoukhy used to buy the club was wound up.
That petition was brought by former United owner Prince Abdullah, who alleges he is still owed £35m for the 2024 sale of the Blades to Rosen and Eltoukhy. That figure has not been disputed by the Americans’ camp.
Both the EFL and IFR are investigating whether COH Sports Bidco, the company that was wound up, remains sufficiently linked to United for the club to face sanctions under the EFL's insolvency rules, including a potential points deduction.
Separately the bodies are also probing the decision to essentially move United from one holding company, COH Sports Bidco, into another, 1919 Partners LLC. The understanding is that neither was aware of that change before it was made.
Rosen has at least answered some questions about his ownership in recent weeks, although he is yet to sit down for an interview with any local media. He appeared on a podcast in the United States, for a chat with a long-time associate, and met with United’s Fan Advisory Board earlier this month.
Rosen is still yet to explain exactly how the dispute with Prince Abdullah came about, although he told the FAB that legal representatives for both sides had been discussing liabilities as part of the sale of the club, with a difference of opinion over what was owed.
Rosen said he remained hopeful an amicable solution could be found, despite Prince Abdullah having decided to wind up COH Sports. In the podcast, Rosen told long-time associate Nathan Zegura that he cannot see any scenario in which United are punished over the winding-up of COH Sports Bidco.
Speaking to FAB officials, Rosen also addressed suggestions that his involvement in previous insolvency proceedings could have implications under the EFL’s owners’ and directors’ threshold, which was formerly known as the ‘fit and proper’ test and sets out circumstances in which individuals can be prevented from becoming - or continuing as - directors of an EFL club.
Rosen was a director of COH when it was wound up recently, and SEC documents show he was appointed as an independent director at US medical equipment company Invacare in 2022 before it filed for Chapter 11 bankruptcy protection in January 2023.
In the FAB meeting, according to their minutes, “Rosen said he has been involved in hundreds of companies and there have never been insolvencies with the ones he has directly controlled. Additionally, he has never himself been personally declared insolvent.”
But the EFL’s regulations do not simply refer to companies directly controlled by an individual. They specifically refer to someone who has “been in an equivalent role to that of a director” at entities which have suffered qualifying insolvency events within the previous 10 years.
Whether Rosen’s role at Invacare, and the circumstances surrounding COH Sports, fall within the relevant provisions will ultimately be for the EFL, not Rosen, to determine.