Sheffield United face possible 12-point deduction after High Court winds up CSBL
Sheffield United could face a 12-point deduction after COH Sports Bidco Limited (CSBL), the company used to buy the club, was placed into liquidation by the High Court on Wednesday. The Championship club had started the new season with a goalless home draw against Birmingham.
CSBL agreed to purchase Sheffield United for just over £100m in December 2024, but about £35m remained unpaid on the deal. A winding-up petition was filed last month by United World, the club's former owners. CSBL, led by United co-chairmen Steven Rosen and Helmy Eltoukhy, did not have representation at the High Court hearing, which lasted about 10 seconds. United World said it had made "every effort to resolve this matter amicably" but had "received no response"; Sheffield United are yet to comment.
The legal outcome is complicated by the movement of the club's shares into a new company in June. Because a separate company — not the football club — has been wound up, there is no automatic punishment from the EFL for an insolvency event. The EFL said it would consider the implications of CSBL's liquidation "including whether any further action is required" and 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."
Ownership history underpins the dispute: Saudi Arabian Prince Abdullah bin Mosaad Al Saud bought 50% of Sheffield United in 2013 and acquired the remaining 50% in 2019 after a lengthy High Court battle. When United World — the vehicle through which Prince Abdullah owned the club — sold to CSBL, unresolved financial obligations remained.
Sheffield United were docked two points during the 2024-25 season for missed transfer payments attributed to the Prince Abdullah era in 2022-23. CSBL made an initial payment when the sale closed, but the first instalment due last year was late and only paid after a statutory demand and on the deadline. The High Court hearing centred on a further unpaid sum of about £35m, a debt the new owners have not denied is outstanding.
In June the club's shares were transferred from CSBL to a US-based company called 1919 Partners LLC, which became the "parent company of Sheffield United"; in effect CSBL no longer had any say in the running of the club. Wednesday's court action was against CSBL, but the BBC understands CSBL's leaders retain control of Sheffield United through 1919 Partners LLC. BBC Sport also reports neither the EFL nor the Independent Football Regulator (IFR) had been made aware the share transfer was to take place; neither body has commented, although the IFR confirmed it was in contact with the club to ascertain more information.
The EFL's regulatory framework draws a distinction between a club entering administration and a "group undertaking" insolvency. The regulations instruct the EFL board to take into account factors including "the need to protect the integrity and continuity of the competition" and "the reputation of the league" when assessing any breach. A movement of shares that leaves purchase debt in a wound-up company could be treated as a breach and, under those rules, the board could decide to impose a 12-point deduction for an insolvency event. By way of precedent, Southampton were docked 10 points in 2009 after their parent company went into administration; an investigation found the football club and the parent company were "inextricably linked as one economic entity", prompting the mandatory penalty.
With CSBL now wound up and the unpaid purchase debt in the hands of administrators, Sheffield United face the prospect of a points deduction. It could yet be that Eltoukhy and Rosen move to settle the debt, but the insolvency event will be an evidence-based judgement by the EFL board.
