Sheffield United Finances 2021/22

The Cutter

Sheffield United finished off the 2022/23 season in some style, as they secured promotion back to the Premier League after finishing second in the Championship under manager Paul Heckingbottom, who had replaced Slaviska Jokanovic during the previous season.

The Blades also reached the FA Cup semi-final, only being eliminated by treble winners Manchester City.

This was a fantastic achievement, especially as the club faced a number of financial issues off the pitch throughout the season.

Financial Issues

There has been uncertainty over Sheffield United’s ownership ever since Prince Abdullah decided to put the club up for sale, leading to some problems with cash flow.

As a result, the EFL placed United under a transfer embargo in January, due to unpaid instalments on transfer fees, e.g. Rhian Brewster from Liverpool. This was only lifted two months later in April, long after the January transfer window had been completed, partly thanks to the FA Cup run bringing in some much-needed funds, enabling some payments.

Indeed, in March United’s chief executive Stephen Bettis had to deny that United were going to enter administration, which he did in a fairly forthright manner, “There is not even a threat. That’s complete and utter bullshit.”

That said, Bettis did concede that the club had been late in paying some supplier invoices, “Let’s be brutally honest. We are stretching every single pound that we have got.”

Takeover

Prince Abdullah had become Sheffield United’s sole owner in September 2019 after the High Court ruled that Kevin McCabe had to sell his 50% share to the Prince. This also triggered an agreement whereby the club had to purchase the stadium, training facility, gym, hotel and offices.

In the past 12 months two investors have tried to acquire Sheffield United, but both failed to get a deal across the line, as neither Henry Mauriss, nor Dozy Mmobuosi ultimately managed to satisfy the EFL during the Owners and Directors’ Test.

However, it’s fair to say that the club may well have dodged a bullet here, as the American businessman has since been jailed for wire fraud, while the Nigerian’s company Tingo has been accused of shady business practices and faked financial statements.

Mmobuosi had reportedly already provided £8-9m of financial support to United, though the club do not feel like they are on the hook to repay this funding, as the Prince advised, “We don’t owe anyone any money.”

Despite these disappointments, the Prince’s intention is still to sell the club and there are apparently a few interested parties in the Middle East and the USA. Now that United are back in the Premier League, they are clearly a more attractive proposition, though the price will have increased accordingly. In any case, the club will hope that any takeover is resolved before the new season kicks off.

Although now largely overtaken by events, Sheffield United recently published their accounts for the 2021/22 season, so let’s take a look at these for an idea of the club’s financial situation.

Profit/(Loss) 2021/22

These financial results covered a campaign when the Blades finished 5th in the Championship, this reaching the play-offs, though they were defeated in the semi-final by the eventual promotion winners, Nottingham Forest. This was the club’s first season back in England’s second tier after two years in the Premier League

United’s return to the Championship led to a swing from £10m pre-tax profit to a £16m loss, a deterioration of £26m in the bottom line, as revenue dropped £48m (42%) from £115m to £67m, partly offset by profit on player sales increasing £10m from £1m to £11m.

Operating expenses were cut by £15m (14%) from £106m to £91m, while net interest payable rose £0.6m to £3.1m.

The loss after tax was a little smaller at £15.2m, thanks to a £0.8m tax credit.

United also included a £10.0m revaluation of fixed assets in their comprehensive income, which reduced the overall loss to £5.2m. This non-cash movement followed an increase in the value of the Bramall Lane stadium and the Shirecliffe training facility.

The main driver of United’s £48m revenue decrease was broadcasting, which basically halved in the Championship from £101m to £51m, despite the club being in receipt of parachute payments. Commercial also fell after relegation, decreasing £5m (36%) from £14m to £9m.

However, the return of fans to the stadium after COVID restrictions were lifted meant an increase in match day from just £58k to £7.1m.