Sheffield United Face Potential Points Deduction After Parent Company Wound Up
Sheffield United could incur a 12-point deduction after the company used to buy the club was placed into liquidation by the High Court on Wednesday, according to BBC Sport and talksport.com.
COH Sports Bidco Limited (CSBL), which agreed to purchase the Championship club for just over £100m in December 2024, was wound up after a petition filed by United World, the club's former owners. About £35m was still owed on the deal, and the winding-up order was granted after CSBL had no representation at the hearing, which lasted about 10 seconds.
United World said in a statement that it had made "every effort to resolve this matter amicably" but had "received no response". The former owners also said they tried again on Wednesday morning "to give the owners a final opportunity to spare Sheffield United the consequences of their actions". United World added: "It appears that Helmy Eltoukhy and Steven Rosen are simply not concerned about what this means for the club."
In response, a Sheffield United spokesperson said the club was aware of the hearing and that the matter was between current and former owners. "The football club is in contact with the English Football League and the day-to-day operations at Sheffield United are unaffected," the spokesperson said.
The English Football League said it would consider the implications of CSBL's liquidation, "including whether any further action is required". A spokesman added: "In addition, the EFL continues to consider other regulatory matters following changes to the club's ownership structure and developments within the wider group."
The Independent Football Regulator (IFR) said it was "examining the court's decision on COH Sport in detail" and was "in contact with the club and the EFL". A spokesperson added: "The IFR can assess an incumbent owner's honesty, integrity and financial soundness under its Owners, Directors and Senior Executives regime, should it have grounds for concern."
Background and Context
Prince Abdullah bin Mosaad Al Saud bought 50% of Sheffield United in 2013 before acquiring the rest in 2019. The club were deducted two points during the 2024-25 season because of missed transfer payments under Prince Abdullah during 2022-23.
In June, the shares in Sheffield United were transferred from CSBL into a new US-based company, 1919 Partners LLC, which became the parent company of Sheffield United. Timothy Ryan was added to the board at the same time. According to BBC Sport, neither the EFL nor the IFR had been made aware of the share transfer or Ryan's appointment.
United World argue that Eltoukhy and Rosen had effectively attempted to take the club without paying for it after transferring their shares to a new company. The American pair dismissed the move as a "publicity stunt".
Sources close to the current ownership told talksport.com that the club is "financially healthy" and that the 2024 deal was between sophisticated parties well advised by Prince Abdullah's financial advisors. They also said Eltoukhy and Rosen invited Abdullah to re-invest and join the ownership to support promotion efforts.
Potential Consequences
A winding-up order against a parent company does not automatically trigger an EFL penalty. As BBC Sport notes, a "group undertaking" insolvency event is more nuanced than club administration, and EFL regulations direct the board to consider factors including the integrity and continuity of the competition and the reputation of the league. In 2009, Southampton were docked 10 points after their parent company went into administration, following an investigation that found the club and parent company were "inextricably linked as one economic entity".
With CSBL now wound up and an unpaid debt in the hands of administrators, Sheffield United face the prospect of a points deduction. It could be that Eltoukhy and Rosen move to settle the debt, but the insolvency event will be an evidence-based judgement by the EFL board.
If a 12-point penalty were applied, it would leave Sheffield United 14 points off the play-off spots. The club kicked off their Championship season with a goalless draw against Birmingham at Bramall Lane, but the off-field uncertainty now looms large.