Sheffield United deducted two points by EFL for defaulting on payments
Sheffield United’s board has accepted the club must kick off its next season in the Championship on minustwo points after reaching a “negotiated settlement” with the English Football League.
An independent EFL disciplinary commission has imposed the sanction after the club defaulted on a number of payments due to other clubs during the 2022-23 season, when they won promotion to the Premier League.
Given the defaults totalled more than 550 days, a two-point penalty was triggered under the league’s rules.
A further two-point penalty has been suspended and will be triggered in the Blades’ next EFL season should they fail to fulfil any financial obligation to another club under a transfer or compensation agreement for more than five business days.
With the side bottom of the top tier and nine points short of safety with seven games remaining, they will almost certainly begin next season with the two-point deduction.
Although that could hamper their hopes of promotion, the club will not appeal against the decision and has admitted culpability, albeit with caveats.
They said: “The club’s position was that the relevant sums had been paid in full, on several occasions only days after they were initially due, or negotiated with new future payment dates. The club has cooperated with the EFL to reach a negotiated settlement.
“While disappointed to have the deduction imposed upon the return to the EFL and highlighting that awaiting overdue monies from several other clubs affected Sheffield United’s financial situation, the club took the view that it was better to reach an agreement which minimised the risks of a higher deduction or further transfer embargos being imposed, and being distracted by
lengthy and costly legal proceedings. The club is now in a position to close this matter and concentrate on the future.”
The club agreed to pay the EFL’s legal costs of £310,455.
They were placed under a three-month transfer embargo in January
2023 and referred to the disciplinary commission in March 2023.
The defaults relate to three players signed for a total of just over £8m, with the money owed in multi-season payments in a mixture of pounds and euros.
The club’s owner, Prince Abdullah, spent much of last season attempting, but failing, to sell the club. They then sold Sander Berge and Iliman Ndiaye to Burnley and Marseille respectively for a reported combined total of around £35m last summer.