Skip to main content

Blades are an attractive proposition

An accepted bid to buy Sheffield United is timely. A group with deeper pockets should give United a fighting chance next season if promotion is to be won in May.

The caveat to any change at the top being positive is that it has to be the right owner. United have already been the subject of one unsuccessful takeover bid this year after American businessman Henry Mauriss failed to deliver on his £115million offer. No one wants a repeat of that drawn-out saga.

United have displayed good husbandry under Prince Abdullah, posting sizeable profits in each of the two seasons under the Saudi businessman’s sole control where accounts are available — £17.5million in 2019-20 and £9.5m in 2020-1.

Of course, both these years were in the Premier League and it will be interesting to see how the figures for last season compare when released in spring. But United have been sensible since returning to the EFL, with the last two summers both bringing wage reductions for the players as part of contracts agreed when among the elite.

There has also been little spending in the transfer market since being relegated.

Making United further attractive to would-be buyers is how, since the ownership row was settled in United’s favour, the club has been reunited with Bramall Lane, their Shirecliffe training ground, the hotel and offices on Crookes Road.

This, as football finance expert Kieran Maguire made clear when speaking to The Athletic about the recently accepted offer, is likely to have been pivotal in making the South Yorkshire club such an alluring proposition along with a strong fanbase, with United currently boasting the second-highest average attendance in the Championship after Sunderland.

“When investors are looking to put their money somewhere,” says the Price of Football podcast presenter, “they look at prospects. And Sheffield United is a big city club who have recently been in the Premier League.

“Owning the ground is a big thing. Owners look to develop a ground to be more than a 20-25 day revenue-generating asset. But you can only do that with ownership. While West Ham have a very nice stadium, in terms of the deal they got from the taxpayer, they are restricted with what they can do with it.

“Sheffield United don’t have that problem. There’s also the future cash flow for a club sitting second in the Championship. If the Blades can get into the Premier League, you are looking at a guaranteed £180million.

“Admittedly, a lot of that will go into wages, transfer fees and so on. But that is a huge amount to any prospective buyer.”

 

Labels:

Comments

Post a Comment

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...
1 comment
Read more

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000.  The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts.  Money brought in from football has gone up too. Match day ...
Post a Comment
Read more

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...
Post a Comment
Read more