How Sheffield United transfer embargo will affect takeover talks after Derby County warning

After news broke overnight that Sheffield United have been placed under a transfer embargo, many Blades fans became understandably concerned over the effect it may have on the club’s ongoing takeover talks.

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Prince Abdullah has accepted an offer from an unnamed party to assume control of the Blades, with the prospective buyer’s credentials now being examined by the EFL to ensure they pass its stringent fit and proper person test.

News that United have been hit with an embargo over unpaid transfer fees came as something of a surprise to many supporters, despite a number of clues over the Blades’ perilous financial situation - including a delay in switching on the undersoil heating beneath their newly-laid training pitch until recently.

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The embargo will be lifted as soon as United meet their commitments over the unpaid amount, with boss Paul Heckingbottom telling the media earlier this week that he had received “clarity” over what he has to spend this month as he looks to bring in a replacement for Reda Khadra.

The embargo news is an unwanted distraction for United, as they look to continue their promotion push against Hull City tonight. Heckingbottom’s men go into the game 11 points clear of third-placed Watford and can put some pressure on leaders Burnley with victory over Liam Rosenior’s men.

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And in the background is the takeover situation, with some fans nervous that the embargo situation may throw something of a spanner in the works as regards the shift of power at Bramall Lane. But speaking to The Star, football finance expert Kieran Maguire attempted to calm such fears - revealing that the prospective new owner will already be fully aware of what the Blades owe, and to who.

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“Both parties do their due diligence and that’s when things can fall between the cracks,” Maguire said. “It’s happened before, where the old owner thought the new owner was going to pay the wages, as an example, and the deal would go through by payroll date and it didn’t. That happened at Derby County, and you don’t want to go down the Derby route.

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“Once heads of terms have been agreed, which is the equivalent of exchanging contracts on the house, the prospective buyer then gets the opportunity to have the equivalent of a house survey, and go through what you’ll be acquiring.

“You get a list of the assets and also obligations, including any outstanding amounts for VAT owed and loans, for example. You get access to the full list and it does have an impact on the price. If you were buying a house and the survey said it had dry rot, you’d try and knock a few grand off the price because that’s what it’d cost to get fixed.

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“Everyone needs complete transparency in terms of the deal and that’s why they sometimes drag on. They will have had access to the books which shows all outstanding contracts, all dates of payments due and so on. So it won’t be a huge surprise.”