Sheffield United could be hit with a significant points deduction after the company originally used to acquire the Championship club was ordered into liquidation by the High Court.
COH Sports Bidco Limited, known as CSBL, completed a takeover of Sheffield United in December 2024 in a deal valued at slightly more than £100 million. However, around £35 million connected to the purchase remains unpaid.
United World, the club’s former ownership company, filed a winding-up petition against CSBL last month over the outstanding amount. The High Court approved the petition on Wednesday during a hearing that lasted only seconds, with nobody appearing on behalf of CSBL.
The former owners said attempts had been made to settle the dispute before court action was taken, but no agreement was reached.
Sheffield United stressed that the legal case concerns the current and previous ownership groups rather than the football club itself. The club remains in contact with the English Football League, while normal operations continue.
EFL reviewing potential consequences
The liquidation does not automatically trigger a sporting penalty because CSBL is a separate corporate entity from Sheffield United.
Nevertheless, the EFL is assessing whether the insolvency event has implications for the club and whether disciplinary action is necessary. It is also examining other regulatory issues connected to recent changes in Sheffield United’s ownership structure.
The Independent Football Regulator is conducting its own review of the High Court decision and has been communicating with both the club and the EFL.
The regulator has powers to examine whether existing owners satisfy requirements relating to integrity, honesty and financial soundness if sufficient concerns arise.
Ownership restructuring complicates the case
The situation is made more complex by a restructuring carried out in June.
Shares in Sheffield United were transferred from CSBL to a new US-based company, 1919 Partners LLC, which subsequently became the club’s parent company. Timothy Ryan also joined the board during the restructuring.
That change meant CSBL no longer directly controlled the football club by the time the winding-up order was issued.
However, there remains a clear connection between the two companies. CSBL was controlled by Sheffield United co-chairmen Steven Rosen and Helmy Eltoukhy, who also control the club through 1919 Partners.
The EFL and the Independent Football Regulator were reportedly not informed in advance about the share transfer or Ryan’s appointment, adding another issue for the authorities to examine.
£35m debt remains at heart of dispute
Sheffield United’s ownership history has already produced financial complications.
Saudi businessman Prince Abdullah bin Mosaad Al Saud first acquired a 50% stake in the club in 2013 before gaining full ownership in 2019 following a lengthy legal battle.
His United World group later sold Sheffield United to CSBL in December 2024.
The club had already received a two-point deduction during the 2024-25 season for missed transfer payments dating from Prince Abdullah’s ownership.
Under the takeover agreement, CSBL made an initial payment when the sale was completed. A later instalment was paid late and only after a statutory demand was issued.
The latest court proceedings centred on a further payment of approximately £35 million. The current owners have not disputed that the money remains outstanding.
Why a 12-point deduction is possible
EFL insolvency rules become less straightforward when the affected company is part of a wider ownership structure rather than the football club itself.
The league board can consider factors including the integrity of its competitions, the continuity of clubs and the reputation of the league when determining whether an insolvency involving a related company should lead to sanctions.
The transfer of Sheffield United shares out of CSBL shortly before the company was wound up is therefore likely to receive particular scrutiny.
Regulators could examine whether the restructuring effectively separated ownership of the football club from a company carrying a substantial unpaid takeover debt. If the EFL decides that the insolvency remains sufficiently connected to Sheffield United, disciplinary measures could follow.
One possible sanction is a 12-point deduction.
There is precedent for the EFL looking beyond the legal separation between a club and its parent company. Southampton were deducted 10 points in 2009 after their parent company entered administration. The league concluded that the two organisations effectively operated as a single economic entity.
Sheffield United’s circumstances are different, meaning any punishment would depend on the specific evidence surrounding the takeover, subsequent share transfer and CSBL’s financial position.
Rosen and Eltoukhy could still attempt to resolve the outstanding debt, but the liquidation has already created an insolvency event that the EFL must now assess.
Until that review is completed, Sheffield United remain exposed to the possibility of a major sporting penalty as authorities examine how closely the failed company remained connected to the club.