Investigation Launched into Sheffield United’s Ownership Changes
The English Football League (EFL) is currently investigating allegations concerning Sheffield United’s owner, the American investment group COH Sports. The inquiry focuses on claims that the group established a new parent company for the club to circumvent a £35 million obligation to former owner Prince Abdullah.
Background of the Ownership Deal
COH Sports, headed by Steven Rosen and Helmy Eltorky, finalized a deal to acquire Sheffield United from Saudi Arabia in December 2024 for approximately £100 million. Although a first installment of about £30 million was promptly paid, reports indicate that COH Sports has deferred the second payment and missed two additional payments due this year. Consequently, Mr. Abdullah’s investment group, United World, initiated legal actions against COH Sports in the High Court this week, while also raising concerns with the EFL and the independent football regulator.
Discrepancies in Payment and Ownership Structure
It is reported that United’s current owners have acknowledged roughly £35 million in outstanding debts and have confirmed the transition to a new parent company. However, they maintain that these two issues are not related. Mr. Abdullah has proposed an option for the club to convert its debt into equity, but the two parties have yet to reach an agreement.
Legal Communication with the EFL
A letter sent to the EFL, which was reviewed by the Guardian, claims that COH Sports is deliberately withholding the £35 million payment. Additionally, the communication alleges that COH Sports has shifted assets from COH Sports Bidco Limited (CSBL), the entity responsible for acquiring Sheffield United, to a newly formed company, 1919 Partners LLC.
Updates on Ownership Structure
On June 22, Sheffield United issued a “Board of Directors Update,” revealing that 1919 Partners LLC, a Delaware-based entity, serves as the new parent company of the club and plays a pivotal role in its ownership structure. This shift has raised concerns regarding the suitability of the current management, particularly in light of the ongoing financial disputes.
EFL’s Response to the Situation
The EFL has been actively addressing this issue and had reached out to United’s owners several days prior to receiving a formal letter from United World. A spokesperson for the EFL commented that they are monitoring recent developments related to Sheffield United and have asked the parties involved to ensure compliance with EFL regulations.
Concerns Over Competitive Fairness
Abdullah’s legal team has also expressed concerns that the restructuring and potential avoidance of full payment could jeopardize the integrity of the EFL, as it might provide Sheffield United with an unfair advantage over its competition in the Championship.
Response from 1919 Partners LLC
A spokesperson for 1919 Partners LLC stated that the current situation does not impact the club’s daily operations or financial health, assuring stakeholders that Sheffield United is well-prepared for the upcoming season. They emphasized their commitment to creating a more robust ownership structure that promises improved financial sustainability and inviting future investments.
