Sheffield United could be dealt a significant blow as they face the prospect of a 12-point deduction in the Championship after a recent High Court ruling in London ordered the liquidation of the company through which the club was purchased.
The firm COH Sports Bidco Limited (CSBL), led by co-owners Stephen Rosen and Helmi Eltuhi, had agreed to buy the club for over £100 million in December 2024. However, lingering debts of around £35 million owed to previous owner, Saudi Prince Abdullah bin Mosaad Al Saud, have now raised legal complications. The former owners filed a lawsuit for the liquidation of CSBL after their attempts to resolve the matter outside of court went unanswered, with representatives of CSBL even failing to show up at the hearing.
Share transfer and regulatory scrutiny
The situation for the South Yorkshire outfit has been compounded by reports that in June, shares in Sheffield United were transferred from the liquidating CSBL to a new American company, 1919 Partners LLC, with Timothy Ryan joining the board. However, control of the newly-formed entity remains in the hands of Rosen and Eltuhi.
The English Football League (EFL) and the Independent Football Regulator (IFR) are currently investigating the legality of these asset transfers:
- Club's position: Sheffield United representatives argue that the ongoing legal dispute is strictly between current and former owners, insisting that the club's operations remain unaffected;
- EFL's response: The league is examining the implications of the liquidation of CSBL and assessing ownership structure changes for compliance with regulations;
- IFR review: The regulator is checking the integrity and financial standing of the owners as part of a special due diligence process.
Why Sheffield United face a potential 12-point penalty
The EFL rules stipulate a 12-point deduction can be enforced in cases of insolvency. The transfer of shares to a new company could be interpreted by the regulator as a means to circumvent the substantial debts associated with the club acquisition, leaving them on the inactive legal entity.
This isn’t the first time such a precedent has occurred in the league; Southampton was stripped of 10 points back in 2009 after the parent company entered administration, with an investigation confirming the financial links between the club and the parent entity. If Sheffield United's management fails to settle the unexplained £35 million debt soon, the EFL board is expected to impose strict disciplinary measures.
