Lincoln City could see one of their Championship rivals hit with a 12-point deduction after the company that purchased Sheffield United was placed into liquidation.
There is usually always a basket-case club in the division, and this season, it could be the Blades. No punishment has yet been imposed, but the EFL is examining whether the developments surrounding COH Sports Bidco Limited should lead to regulatory action.
The uncertainty could have a significant effect on the Championship table. Sheffield United opened their season with a goalless draw against Birmingham City, but their position could change considerably if the EFL decides that the liquidated company and the football club were sufficiently connected.
There is no automatic deduction because Sheffield United themselves have not entered administration. The EFL board must instead examine the relationship between the club, CSBL and the new company which now holds its shares before determining whether an insolvency penalty should apply.
An EFL spokesperson said:
“The EFL will consider the implications of CSBL’s liquidation, 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.”
The possibility of a deduction can be traced back to Sheffield United’s takeover in December 2024. CSBL agreed to purchase the club from United World for just over £100 million, but approximately £35 million remained unpaid from the deal.
United World, the company through which Saudi Arabian Prince Abdullah bin Mosaad Al Saud had owned the Blades, filed a winding-up petition against CSBL last month. The company had no representation at Wednesday’s High Court hearing, which reportedly lasted around 10 seconds before the liquidation order was made.
Following the ruling, United World accused Rosen and Eltoukhy of ignoring repeated attempts to settle the debt and showing little concern for the possible consequences for Sheffield United. A spokesperson for Prince Abdullah’s former ownership group said:
“No defence was filed and the debt of more than £35 million was not disputed. United World made every effort to resolve this matter amicably and tried until the morning of the hearing to give the owners a final opportunity to find a solution and spare Sheffield United the consequences of their conduct.
“That approach, like every one before it, received no response. It appears that Helmy Eltoukhy and Steven Rosen are simply not concerned about what this means for the club.
“What happens to Sheffield United now is the result of their choices. United World will continue to pursue the full sums owed through every legal avenue available, including against those personally responsible, and will support the officeholders of COH Sports Bidco with their investigations.”
Before the hearing, Sheffield United’s shares had been transferred from CSBL into 1919 Partners LLC, a new company based in the United States. That move was completed in June and made 1919 Partners the club’s parent company, leaving CSBL without any direct involvement in the running of Sheffield United.
However, both companies are controlled by Sheffield United co-chairmen Steven Rosen and Helmy Eltoukhy. That connection is likely to form an important part of the EFL’s assessment, particularly because the unpaid debt associated with the club’s purchase remained with the company which has now been wound up.
Sheffield United insist the dispute is between their current and former owners, with the football club continuing to operate as normal.
“Sheffield United Football Club is aware of today’s hearing at the High Court.
“This is a matter between the current owners and former owner.
“The football club is in contact with the English Football League and the day-to-day operations at Sheffield United are unaffected.”
The Independent Football Regulator is also examining the High Court decision and remains in contact with Sheffield United and the EFL. Its powers allow it to assess the honesty, integrity and financial soundness of an existing owner if sufficient grounds for concern are identified.
A regulator spokesperson said:
“The IFR is examining the court’s decision on COH Sport in detail and is in contact with the club and the EFL.
“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.”
The EFL has previously imposed a penalty when an insolvency event involved a club’s parent company. Southampton were deducted 10 points in 2009 after their parent company entered administration, despite the football club arguing that there was no relevant financial link between the organisations.
An investigation concluded that Southampton and their parent company were effectively one economic entity. The circumstances surrounding Sheffield United are not identical, but the case demonstrates that a club can still be punished when an insolvency event takes place elsewhere within its ownership structure.
Sheffield United could yet avoid any sporting sanction, and Rosen and Eltoukhy may move to settle the outstanding debt. Any deduction will depend upon the EFL board’s assessment of the evidence, but one of Lincoln City’s Championship rivals now faces the possibility of losing 12 points at the beginning of the campaign.
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