Fans fear Blades have been blunted

After losing their first two games of the new campaign, Sheffield United find themselves at the wrong end of the Championship table, which is probably not what was expected after reaching the play-off final last season.

If the Blades want to mount another promotion challenge, they will have to rapidly get over the disappointment of losing that game, where the pain was maximised by Sunderland scoring the winning goal in injury time.

Ownership changes

The club had actually led the table in December 2024, when a change in ownership took place, as Prince Abdullah managed to get a deal over the line after a number of failed negotiations.

in fairness, United had dodged a bullet when deals with two of the potential investors failed to materialise, as American businessman Henry Mauriss was subsequently jailed for wire fraud, while Nigerian tycoon Dozy Mmobuosi has been accused of fraud by the US Securities and Exchange Commission.

Therefore, fans would have probably been somewhat relieved when the club finally changed hands, as a takeover was completed by a US consortium, COH Sports United, fronted by businessmen Steven Rosen, founder of private equity firm Resilience Capital, and Helmy Eltoukhy, founder of biotech company Guardant Health.

That’s not the only important change to take place at Bramall Lane recently, as manager Chris Wilder was unceremoniously sacked after failing to gain promotion back to the Premier League. As “Yes, Minister” used to say, this looks like a “courageous decision”, given Wilder’s excellent track record in the Championship, especially as his replacement, Rubén Sellés, is more accustomed to working with struggling clubs rather than promotion candidates.

Wilder’s departure has been attributed to the new owners’ recruitment plans, specifically placing more reliance on data and artificial intelligence, as they explained to supporters.

That’s all well and good, but United’s recruitment model to date does not seem to have identified much talent, as the only permanent arrivals this summer have been a couple of distinctly underwhelming players from the Bulgarian league (though the exciting Louie Barry has arrived from Aston Villa on loan).

Lack of ambition?

The apparent lack of ambition from the new owners has led to a lot of concern among Blades fans, as there are still some important gaps in the squad that need to be filled by adequate replacements, especially as the club has lost midfielder Vini Souza, defender Anel Ahmedhodzic and striker Kieffer Moore.

The lack of signings is all the more puzzling, given that this is the last season when United will benefit from parachute payments from the Premier League. Consequently, if they fail to go up this year, their budget will be much smaller next season.

Following promotion to the Premier League, United swung from a £31.5m loss before tax to a £3.9m profit in 2023/24, which the club described as “a significant recovery”.  United’ financial performance essentially depends on which division they find themselves in, as they have made money every single season they have played in the Premier League, but consistently lost money in the Championship and League One.

In fact, the profit would have been even higher at £29.0m if the club had not booked £25.1m of exceptional impairment charges.

Revenue more than doubled from £64m to £128m, while profit from player sales increased from £4m to £19m, but this was partly offset by an increase in operating expenses, which rose £25m (25%) from £96m to £121m, while net interest payable doubled from £4m to £8m.

The main driver of United’s revenue growth was broadcasting, which rose £71m from £43m to £114m, due to the far more lucrative Premier League TV deal. The increase would have been even higher if United had not benefited from a parachute payment in the Championship

In fact, only four clubs have made more money in the first season after promotion to the Premier League, namely Luton £49m (2023/24), Hull City £36m (2016/17), Brentford £31m (2021/22) and Huddersfield Town £30m (2017/18).   Money doesn’t guarantee success, but United’s limited investment in their squad following promotion surely reduced their chances of survival.

Player sales

One of the reasons for United’s net profit was a better result from player sales, where the gain increased from £4m to £19m.   However, this was a bit of a double-edged sword, as they sold probably their best two players before the season started, with Senegal international Iliman Ndiaye joining Marseille, while midfielder Sander Berge moved to Burnley.  In fairness, the club emphasised that this duo had entered the final year of their contracts, while pointing to the players’ “lack of desire to extend them further”.

In a way, it’s understandable that the club would sell in those circumstances, but it was analogous to a boxing trainer throwing in the towel before a punch had been thrown, especially as Prince Abdullah only sanctioned a limited transfer budget.

In the last five years, United’s £40m profit from player sales was one of the lowest in the Premier League, only better than Luton Town and Crystal Palace. At the other end of the spectrum, four clubs generated more than £200m, namely Chelsea £509m, Manchester City £437m, Brighton £300m and Everton £217m.

Last season will be better, as they again offloaded players after relegation, resulting in a profit of £22m. This included Cameron Archer return to Aston Villa (which was obligated after the club’s relegation), as well as the sales of William Osula to Newcastle United, Auston Trusty to Celtic, Jayden Bogle to Leeds United and Bénie Traoré to Basel.

United’s average attendance increased from 28,763 to 29,971 in 2023/24, which is the club’s highest since the last time they were in the Premier League, when they registered 30,869. This was around 12,500 more than their 2013/14 low of 17,507 in League One.   Following relegation, United’s attendance dropped to 27,477, but this was actually the 4th best in the Championship, only beaten by Leeds United 35,707, Derby County 30,641 and Sunderland 29,948.

United’s wage bill only rose by £16m (32%) from £48m to £64m, which was not that big an increase following promotion to the Premier League.   As a result, United’s £64m wage bill was the second lowest in the Premier League, only above Luton Town’s £57m, but a fair way below the other relegated club, Burnley £93m. All of these figures were depressed by not paying a survival bonus.

As would be expected, United spend more in the transfer market when they are in the Premier League, as their total outlay in their most recent two seasons in the Championship was only around £5m, compared to £112m in the preceding two seasons in the top flight.

United’s gross debt (in the football club) decreased from £54m to £51m, almost entirely in the form of bank loans (mainly from Macquarie), secured on TV money and transfer payments.  The amount owed would have been much higher without the owners converting £71m of debt into equity in the last ten years.

Relatively little funding has been put in by United’s owners, though £29m was provided in the last three years, including £23m in 2022/23, which was subsequently converted into equity.

It’s fair to say that the club didn’t “speculate to accumulate”, as their spending was rather conservative following promotion to the top flight, so it felt like the Blades were always fighting with one hand tied behind the back.  At least the club is no longer in ownership limbo, but the jury is still out on whether the new owners will represent a major improvement on their predecessors. The club can certainly talk a good match, as seen by chief executive Stephen Bettis’ comments in the accounts.