Sheffield United renew ‘payday loan’ from ‘vampire bank’ amid ongoing financial struggle

Sheffield United have extended their borrowing arrangement with an Australian ‘vampire bank’, secured against their Premier League parachute payments up until next summer.

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United have borrowed against their Premier League solidarity payments, and then parachute payments following relegation, from Macquarie Bank since returning to the top flight, with the latest arrangement covering all money due to them from the top flight until the summer of 2024.

The practice in itself is not unusual, with The Star first reporting on United doing business with Macquarie - known as the “Vampire Kangaroo” because of their ruthless focus on profits - and setting up a loan facility back in 2019.

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Documents filed at Companies House late last month confirmed the extension. Because they survived two seasons in the Premier League before being relegated, United are due a third year of parachute payments - thought to be worth in the region of £15m.

But if a club is promoted back to the Premier League within that time, the payments cease. United’s financial struggles are now common knowledge, with the club being placed under a transfer embargo last month after failing to pay an outstanding transfer amount.

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United are also in the middle of takeover talks, with an unnamed investor having an offer for the promotion-chasing Blades accepted.

Football finance expert Kieran Maguire has previously reassured United fans over the practice of effectively mortgaging transfer and parachute payments, describing them as the equivilent of a posh payday loan.

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United, after looking likely to sell Sander Berge to raise the money to pay off their debts and lift the embargo, performed a deadline-day U-turn over the Norwegian’s future - with an alternative source of income now required to meet their outstanding financial commitments, before further sanctions are imposed by the authorities.