Sheffield United are facing the threat of a 12-point deduction in the Championship after the company used to purchase the club was placed into liquidation by the High Court on Wednesday.
Saudi Arabian Prince Abdullah Bin Mosaad Bin Abdulaziz Al Saud sold Sheffield United to Helmy Eltoukhy and Steven Rosen for just over £100million in December 2024. But Prince Abdullah's company, United World, is now seeking to wind up the takeover vehicle, COH Sports Bidco Ltd, claiming it still owes £35m in outstanding instalments from the sale.
United World said in a statement that it had made 'every effort to resolve this matter amicably' but had 'received no response.'
High Court ruling and liquidation
The petition was heard at the specialist Insolvency and Companies Court (ICC) in London on Wednesday (August 19) and lasted around 10 seconds. With no lawyers present on behalf of the club's new owners, COH Sports Bidco was formally placed into liquidation, and the Official Receiver will now take control of the company.
Angus Groom, representing United World, requested the 'usual compulsory order,' which Judge Paul Greenwood granted, formally placing CSBL into liquidation. The company will now be wound up unless the £35m dispute is resolved.
EFL statement and potential points deduction
The EFL will now assess the situation and determine whether it warrants a 12-point deduction. 'The EFL notes the High Court's decision to issue a winding up order on COH Sports Bidco Limited,' they wrote in a statement. 'The League will consider the implications of that development in line with its Regulations, including whether any further action is required. In addition, the EFL continues to consider other regulatory matters following changes to the Club's ownership structure and developments within the wider group. As these issues remain ongoing, the EFL will make no further comment at this stage.'
The dispute centres around the decision to transfer Sheffield's shares from previous parent company CSBL to another one called 1919 Partners earlier this summer. Prince Abdullah claims that is an attempt to 'avoid paying CSBL's creditors.'
United World's legal stance
United World previously said in a statement: 'If the winding-up petition is granted on 19 August, as we expect, EFL Regulation 2.1.16 provides that Rosen must be disqualified from being a controlling owner and director of SUFC. He will no longer be able to be chairman, or a director, he will no longer be able to exercise any control over the club and will have to sell a significant proportion of his controlling interest in the club. In addition, we understand that, once investigations are completed, there is a real prospect that the EFL may have to impose a 12-point deduction on SUFC under EFL Regulation 12.3, in order to "protect the integrity and continuity of the League Competition" and "the reputation of The League."'
United World have hired leading sports lawyer Nick De Marco and added: 'As the former owners of SUFC, United World does not want to see SUFC facing months of uncertainty that will follow the winding-up order being granted on 19 August, but in the absence of Eltoukhy and Rosen, both billionaires, agreeing to pay what they owe, we have no alternative but to take all legal steps to protect our interests.'
Expert analysis
Football finance expert Kieran Maguire has weighed in on the ongoing situation at Bramall Lane. He told BBC Sheffield: 'If they are dismissive of it, then all they can do is quickly show the transfers of the money at the appropriate dates and United World don't have a case. But at the same time, why would you pursue somebody for money if you had been paid? There's one of two things that have happened there if the Sheffield United case, of the current owners is as strong as they claim it to be. Either, A, it's nonsense, or B, the numbers involved are inaccurate and therefore it's not £35million which I think is actually sort of, £25m plus interest or something like that. There's a dispute about the quantum involved or you know, they have made the payments and for some reason, United World is denying receipts. But looking at the people that United World have got acting for them, I think, is it Jones Day, who are one of the big-hitting lawyer firms. They're not doing it for, you know, the cost of a big issue per hour, are they? They're going to be serious lawyers at serious money levels.'
