Sheffield United faces EFL probe over £35m unpaid purchase price

The English Football League has opened a formal investigation into Sheffield United after the club’s former owner accused its American investors of restructuring the business to avoid paying a £35m debt.

Prince Abdullah, who sold the Championship club to US group COH Sports for about £100m in December 2024, has filed a winding-up petition in the High Court. His investment vehicle, United World, claims COH Sports paid an initial £30m but has since been late on a second instalment and missed two subsequent payments.

At the centre of the dispute is a corporate manoeuvre executed last month. COH Sports transferred the club’s shares from the original acquisition vehicle, COH Sports Bidco Limited, to a newly created Delaware-based parent company called 1919 Partners LLC.

This cross-border restructuring has drawn the immediate scrutiny of both the EFL and the newly established Independent Football Regulator. For European football, the case highlights the growing friction between complex foreign ownership structures and domestic governance frameworks designed to protect competitive integrity.

Abdullah’s legal team argues that avoiding the agreed purchase price inherently gives Sheffield United an unfair financial advantage over rival Championship clubs. In correspondence sent to the EFL, his representatives questioned how the league could possibly remain satisfied that individuals who "engineer a means of transferring the Blades shares out of CSBL to avoid paying in full" are "fit and proper" to run a club.

The current ownership accepts the £35m is owed but insists the debt and the corporate restructuring are entirely separate matters. Talks have been ongoing for some time, with Abdullah previously offered the chance to convert the debt into equity, though no resolution has been reached.

A spokesperson for 1919 Partners LLC defended the changes, stating: “The purpose of the restructuring was to create a stronger platform, more efficient and flexible ownership structure that further supports the long-term financial sustainability of Sheffield United.” The company added that the new setup allows for additional capital investment alongside lender MSD Capital.

“This matter has no impact on the day-to-day operations or financial stability of Sheffield United, which remains well positioned ahead of the new season,” the spokesperson said. “We are focused on winning football matches, not playing politics.”

The EFL confirmed it is actively engaged on the issue. “The EFL notes recent developments involving Sheffield United and has requested observations from the relevant parties in the context of EFL regulations,” a spokesperson said. “As this process is ongoing, we are not in a position to make any further comment at this time.”