The Political Economy of Football V2

The high court in London has issued a winding-up order against Sheffied United’s former parent company, COH Sports Bidco Ltd, as a result of a dispute between United’s current owners, Steven Rosen and Helmy Eltoukhy, and their predecessor, Prince Abdullah’s United World, which claims it is owed £35m in unpaid fees after the £110m sale of United in December 2024. The action was initiated after United World accused the current owners of transferring ownership from COH Sports Bidco Ltd to1919 Partners LLC in a bid to avoid paying the amount outstanding on the purchase price.   United World noted, “no defence was filed and the debt of more than £35m was not disputed”, adding that it had made “every effort to resolve this matter amicably”, but received no response. They concluded, “It appears that Helmy Eltoukhy and Steven Rosen are simply not concerned about this means for the club. What happens to Sheffield United now is the result of their choices.”   For its part, the club ...

Sheffield United’s former owner United World has warned current owners Helmy Eltoukhy and Steven Rosen that they will lose control of the team if they fail to pay the £35million ($47million) it is claimed they still owe for the Championship club.   United World also claimed there is also a “real prospect” of a points deduction for Sheffield United this season. The warning comes in a statement issued on Monday, two days before United World’s petition to wind up COH Sports Bidco Ltd (CSBL) — the company Eltoukhy and Rosen set up in 2024 to buy Sheffield United — is heard in a London business court on Wednesday. United World, owned by Saudi royal Prince Abdullah Bin Mosaad bin Abdulaziz bin Al Saud, filed the winding-up petition in early July, two weeks after a “board update” appeared on the club website that said the South Yorkshire-based team had a new “parent company”, 1919 Partners LLC. The club announcement continued by saying the Delaware-based 1919 Partners “sits at ...

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 rel...

It looks as if the takeover of Sheffield United by an American consortium is nearing completion:  https://sheffunitedway.co.uk/2024/12/06/american-based-consortium-reveal-huge-news-amid-sheffield-united-takeover-saga/ Some may be concerned about an American takeover of a prospective Premier League club, but Blades fans will just be relieved that this long saga is over and their club can look forward to more stability.

Relegated from the Premier League last season, Sheffield United have been on the market for at least two years, during which time they have twice got into talks with guys who were all mouth and no money, convicted fraudster Henry Mauriss and Dozy Mmobuosi, who was last seen on the run from American justice in his native Nigeria. With those embarrassing experiences in mind, Sheffield United owner Prince Abdullah bin Mosaad Al Saud asked financial services firm Lazard to find someone who might be able to write a cheque that does not bounce. As Sheffield United are known as “the Blades”, a nod to the city’s status as a steel-making centre, Lazard has dubbed its search Project Saif, the Arabic word for blade. The 25-slide sales brochure leans heavily on the club’s long history, recent visits to the Premier League and “six critical, wholly-owned real estate assets”: the stadium, two training grounds, a hotel, an office block and a community sports centre. Among the other assets listed...

As Sheffield United get ready for the new season, there remains a sense of uncertainty about the club’s ownership. Talks have been slowly progressing with an American consortium, reportedly led by Tom Page of venture capital firm Vertex Albion, but a deal has not yet been concluded. The hope was that the new owners would be on board before the end of this summer’s transfer window, especially after it was reported that plans had been submitted to the EFL for the owners and directors’ test, but, as of yet, there has been no white smoke confirming that the club has changed hands. In the last few days, there have been reports that John Textor, the American billionaire, is looking to sell his shareholding in Crystal Palace and invest in another English football club, which led to Blades fans speculating that he might enter the “race” to buy United. However, that rumour would appear to be unfounded at this stage. Sheffield United’s current owner is Prince Abdullah, who has been involve...

I have a good friend who is a Blades fan who is having a major operation in Sheffield this week.  At least he will be spared the sight of more likely collapses by the team with fans walking out before half time. Confidence is a key factor in football and its absence can compound weaknesses in a team. The culpability for Sheffield United’s miserable state ultimately lies with Prince Abdullah, the club’s Saudi owner, whose meagre financial backing and rank incompetence makes it an enduring mystery that he presided over promotions from the Championship twice in four years. Both of those ascents, though, owed everything to stellar work by Wilder and Heckingbottom, and were achieved in spite, not because, of Abdullah’s stewardship.    It is hard to recall a promoted club beginning a campaign with a team so clearly diminished from the last. Berge and Ndiaye were in the final years of their contracts and, after failing to agree new deals, the club chose to sell them for a comb...

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 s...

The Nigerian businessman trying to buy Sheffield United is ready to abort the takeover despite spending more than £8 million to support the Sky Bet Championship club through their current financial crisis. On a day when local reports in Yorkshire said senior figures at Bramall Lane were now looking elsewhere for investment, sources close to Dozy Mmobuosi said there had been a major breakdown in his relationship with the current Saudi owner, Prince Abdullah. In fact, the situation could now end in a bitter legal dispute given the money Mmobuosi has already paid to show his commitment to the deal and help resolve the financial issues that resulted in a transfer embargo being imposed by the English Football League (EFL). Mmobuosi and Prince Abdullah shook hands on a £115 million deal at the Dorchester Hotel in London on November 22, 2022, with Mmobuosi underlining his commitment by making a £1 million payment to the Saudi businessman. Sources close to Mmobuosi claim he then paid a...

Sheffield United chief executive Stephen Bettis insists the club are not in danger of going into administration. Reports on Friday stated the club had introduced measures to reduce expenditure and avoid the threat of administration. Bettis denied that these measures, including cutting back on grass fertiliser and turning off undersoil heating at the training ground, had been taken. The chief executive did admit that United had failed to pay several suppliers on time. The undersoil heating had stopped working after March’s snowfall and United owed the company operating it £26,000. This was paid the following day.

Sheffield United have not commented on reports that they face administration.   The club has been taking cost cutting measures with their takeover bid in limbo:  https://www.examinerlive.co.uk/sport/football/news/sheffield-united-administration-takeover-embargo-26501216

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 p...

The authoritative Swiss Ramble reviews the accounts of Sheffield United for 2020/21 when they were relegated from the Premier League. Pre-tax profit fell from £19m to £10m, as revenue dropped £28m (20%) from club record £143m to £115m and profit on player sales decreased £3m to £1m, partly offset by operating expenses falling £21m (17%). Net interest payable was up £1.7m to £2.5m. The Blades are one of only four Premier League clubs to report a pre-tax profit to date, only surpassed by Wolves £145m (including £127m loan write-off) and Leeds £26m. This is the second year in a row that they were profitable (£29m in total).   They only made a profit on one other occasion since 2008, though £31m in 2014 was due to McCabe writing-off £35m loan before partnering with the Prince. The £19m loss in 2019 was impacted by promotion bonus. This was the second year under new owner Prince Abdullah after the High Court ruled that Kevin McCabe had to sell his 50% share to the Prince. This a...

Sheffield United are the latest club to be reported to have been bought by an American tycoon for £115m who made a failed bid for Newcastle United.  This represents a considerable profit for the current owner:  https://www.mirror.co.uk/sport/football/news/sheffield-united-takeover-newcastle-ashley-26768663

From his Zurich fastness, the authoritative Swiss Ramble casts his forensic eye over the 2019/20 accounts of Sheffield United. Following promotion the Blades swung from £21m pre-tax loss to £19m profit, a £40m improvement, as revenue shot up £122m from £21m to club record £143m, though profit on player sales fell £10m to £4m and competing in the Premier League increased expenses by £72m. Profit after tax was £18m. The main driver of the £122m revenue increase was broadcasting, up £109m from £8m to £117m, due to the much more lucrative Premier League TV deal, though commercial also rose £13m from £7m to £20m, while match day was up £0.8m (13%) from £5.9m to £6.7m. Revenue of £143m is an incredible 13 times as much as the £11m they reported in League One just three years ago with £115m of the £132m increase coming from broadcasting, which contributes 82% of total revenue.   There was slso significant growth in commercial, up from £3m to £20m. £143m revenue was a very respectabl...

The owner of Sheffield United has confirmed that he is about to complete the acquisition of French Ligue  2 club Chateauroux.  It will be the fifth club in Abdullah bin Mosaad's United World portfolio:  https://www.examinerlive.co.uk/sport/football/news/prince-abdullah-united-world-chateauroux-19427107

The group that owns Sheffield United has a very different philosophy to that of City Football Group with its globalising strategy based on the ownership of multiple clubs across the world. United World is the owner of Sheffield United, Beerschot, Kerala United and Al Hilal United. Board member Jan Van Winckel, Marcelo Bielsa’s former right-hand man at Olympique Marseille, is confident all clubs can become sustainable. Prince Abdullah bin Mosa’ad bin Abdulaziz Al Saud is the owner behind the football group and according to Van Winckel his approach to a multiple-club ownership model is very different to City Football Group and others. “The investments are based on the idea that each club can become self-sufficient in the future. That’s aligned with what we have always opposed, namely, that a club dependent on a Maecenas will always fade,” Van Winckel told offthepitch.com

The authoritative @SwissRamble continues to produce financial fact sheets for leading clubs which can be accessed via his twitter account.    He states, ' I have now prepared these financial fact sheets for all the clubs that were in the Premier League in 2018/19 (except Crystal Palace  and Newcastle United , who have not yet published accounts for that season) plus those promoted in 2019/20.' His summary on Aston Villa is 'p osted huge £69m net loss. Operating loss even higher at £115m, including £46m promotion payments, but £14m HS2 compensation. Offset by £36m stadium sale and £11m player sales. Revenue fall due to lower parachute payments. Debt-free after write-offs and equity conversion.' Bournemouth ' lost money two years in a row, as revenue has fallen from £136m to £131m, while wage bill has grown from £72m to £111m. Little benefit from low player sales. Debt up to £100m, ninth highest in Premier League. Spent £150m on player purchases in last two years with...

The Zurich-based Swiss Ramble blogger casts his authoritative eye over the 2018/19 accounts of Sheffield United. He comments: 'Apart from the pandemic, this has been a glorious period for Sheffield United. There is much to admire about their strategy. Despite their financial limitations, they have delivered on the pitch under Wilder, even with board room issues, and are genuinely competitive in the Premier League.' These accounts cover the final year of co-ownership between Kevin McCabe and Prince Abdullah. Since then the High Court has ruled that McCabe must sell his 50% share to the Prince for £5m. As a result, the club will purchase the stadium and training facility for £43.5m. The club's loss increased from £2m to £21m, reflecting the “exceptional cost of promotion to the Premier League”. Revenue rose 4% (£0.8m) to £21m, while profit on player sales was up £6m (69%) to £14m, but this was more than offset by £26m of cost growth. Although the £21m loss is obviously no...

The annual report of Blades Leisure Limited has a justifiably celebratory tone. It notes that the 2018/19 season was a 'landmark' one for Sheffield United. 'The Club's long term strategy is to be a self-sustaining, globally recognised Club competing in the top tier of English football.' It considers that 'The Club has a tremendous opportunity this season to make its mark on the global stage and it is critical that we optimise this ... We will invest in globalising the Sheffield United brand.' The truncation of the season is therefore a particular blow for the Blades. No one knows what is going to happen about European qualification which would have been the next stage in their development.' Financial losses for the year ending June 2019 were £21.5m, up from £2m, 'demonstrating the exceptional cost of promotion to the Premier League.' They would have been even higher without player sales. In particular David Brooks went to Bournemouth for a ...