There has been uncertainty over Sheffield United’s ownership ever since Prince Abdullah decided to put the club up for sale, leading to some problems with cash flow.
Prince Abdullah had become Sheffield United’s sole owner in
September 2019 after the High Court ruled that Kevin McCabe had to sell his 50%
share to the Prince. This also triggered an agreement whereby the club had to
purchase the stadium, training facility, gym, hotel and offices.
In the past 12 months two investors have tried to acquire
Sheffield United, but both failed to get a deal across the line, as neither
Henry Mauriss, nor Dozy Mmobuosi ultimately managed to satisfy the EFL during
the Owners and Directors’ Test.
However, it’s fair to say that the that the club may well
have dodged a bullet here, as the American businessman has since been jailed
for wire fraud, while the Nigerian’s company Tingo has been accused of shady
business practices and faked financial statements.
The Prince’s intention is still to sell the club and there
are apparently a few interested parties in the Middle East and the USA. Now that
United are back in the Premier League, they are clearly a more attractive
proposition, though the price will have increased accordingly. In any case, the
club will hope that any takeover is resolved before the new season kicks off.
United’s return to the Championship led to a swing from £10m
pre-tax profit to a £16m loss, a deterioration of £26m in the bottom line, as
revenue dropped £48m (42%) from £115m to £67m, partly offset by profit on
player sales increasing £10m from £1m to £11m.
This was the first time that United had posted a loss under
Prince Abdullah, though the profits in the previous two seasons were boosted by
playing in the Premier League. In the top flight, they made £19m in 2019/20 and
£10m in 2020/21.
However, as a rule United tend to lose money. The only other
occasion they have reported a profit since 2008 was £31m in 2013/14, though
this was entirely due to McCabe writing-off a £35m loan before partnering with
the Prince.
United’s revenue has fallen by £76m (53%) from the £143m
peak in 2019/20, when they finished 9th in the Premier League, but the £67m
last season is still the club’s third best ever and the highest ever outside of
the top flight. The vast majority of the
decrease was due to the much lower TV deal in the Championship, which reduced
broadcasting by £69m.
United’s revenue will be significantly higher next season in
the Premier League. This will be dependent on the final finishing position in
the league, though revenue for clubs promoted in the last six seasons was on
average £134m, which would represent a £62m increase for the Blades.
United’s average attendance of 27,611 in 2021/22 was around
3,000 (11%) lower than the last full season in the Premier League, though much
more than the last time they were in the Championship and over 10,000 more than
their 2013/14 low in League One. In fact,
Sheffield United had the highest average attendance in the Championship in
2021/22. The only club whose crowds came anywhere near the Blades was
Nottingham Forest with 25,778, while the next highest was much lower (Derby
County 22,214).
The last time the club was in the Premier League, its £57m
wage bill was by far the lowest in the top flight, £29m below the next lowest
Burnley £86m. Next season will be a tricky balancing act: while United will no
doubt follow their tried-and-trusted tight cost control, the flip side is that
low wages will make relegation more likely.
Sheffield United’s financial results for 2021/22 were fairly
solid, though clearly boosted by the financial advantage provided by their
parachute payment. However, there were
clearly some issues, especially with cash flow, which led to the brief transfer
embargo among other things. Winning promotion in this environment was a fine
achievement, given the distractions off the pitch, including the lengthy
takeover saga.
The quicker that the club can resolve the ownership
question, the better, but the Prince had to admit, “These things never go as
you expect, there are always complications.”
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