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Sheffield United seek to avoid administration ahead of deadline or face points deduction

Sheffield United seek to avoid going into administration ahead of the deadline next Thursday or face a 12 points deduction.

The Blades has taken huge cost-cutting steps to prevent them from going into administration next week, says MailOnline.

The Championship club failed to pay its suppliers and switched off the heating at the training ground in an attempt to save money for their players.

EFL rules state that any club going into administration prior to next Thursday will be automatically deducted 12 points for the season, and this would be a huge blow to the Blades’ chances of being promoted to the Premier League.

Paul Heckingbottom’s side, despite their financial problems behind the scenes, are currently second in the standings with six points more than third-placed Middlesbrough with just nine games left.

United were placed under a transfer embargo after failing to pay the transfer fee instalments due other clubs.

The report goes on to say millions are owed to Liverpool and Malmo for Rhian Brewster and Anel Ahmedhodzic.

Since then, the club has been trying to salvage the season by not going into administration or getting docked points due to late payments, though the situation has worsened recently as they to take cost-saving measures including:

– Turning off the undersoil heating at the club’s Shirecliffe training ground and ordering the players to train inside.

– Instructing ground staff to cut back on the use of grass fertiliser on training pitches to save money.

– Limiting the amount of paint used across various club sites.

– Restricting the use of specialist data and analysis software by club scouts, which has hampered their ability to prepare the squad for matches.

– Cutting back on the use of casual workers and part-time office staff.

– Failing to pay several suppliers on time, which has led to numerous complaints.

– Mothballing various construction projects, with the Copthorne Hotel at Bramall Lane falling into a state of disrepair.

Sheffield United’s current predicament is even more remarkable because they still receive parachute payments two years after being relegated in the Premier League. The top-flight gave them approximately £16m this year, prompting many to wonder where all the money went.

After enduring a long court battle, Saudi Prince Abdullah bin Mosaad bin Abdulaziz al Saud took over the previous Kevin McCabe, with the local property magnate getting just £5million for a 50% stake in the club that was previously valued at £104m. Investment has dried up since then.

The club owes £18.25m in transfer fees as per the most recent accounts, but their total liabilities are much higher because they have been backloading transfer payments for many years.

Heckingbottom’s side take on Blackburn Rovers in their FA Cup quarter-final tie this week, and their run in the competition has seen the club bank over a £1m. Without it, the club could have firmly been in administration. The prize money for getting through to the final eight is around £350,000, and four consecutive ties have generated upto £800,000.

Sheffield United remain confident that they will be able to pay their players in this month because of the economies they have put in place.

A £90m takeover bid by Dozy Mmobuosi, a Nigerian billionaire, was also considered for the club.

However, it was stopped last month by the EFL due to concerns about his source of funding and is unlikely that it will take place.

 

This is what fans said as Sheffield United seek to avoid administration ahead of the deadline or face a points deduction…

@owlwawaw: Please 🙏

@redned76: Football is on its arse. Huddersfield, Sheff Utd , Wigan, all in trouble

@AbladeRay: Feck this!! Hope it’s just bullcrap 🥵😳

@Thisisred5Five: I’m assuming this is the behind the scenes stuff Heckingbottom was referring to last week.

@sufcbi1ly: 2 ways of looking at this for me, firstly it’s 100% true and this is a very valid excuse for the drop off in effort performances for the past 2 months. Secondly It’s over exaggerated to push the takeover through

@sufcdan12: If you don’t laugh you’ll cry

@bazabaggie73: Wtf is going on with championship teams??

@matxta: This is what awaits us if we go down

@CallumWBA_: Half of the championship is having a race over who can go into administration first

@CPFCHQ: Wait what

@gempopmoo: Bloody hell so many clubs in trouble

@benjcar_: Points deduction incoming 😍

@LHM1983: The Championship is fucked financially

@rufc_pod: This league is absolutely crazy

@HungryHatter: If what I’ve read lately is right, Huddersfield are spiralling towards administration, Wigan and Reading might be getting a points deduction and now this. The Championship is going a bit mad.

@Forever__Hatter: WTF 😳

@LaurenWBA: Wow.. this has come out of nowhere

@ryaneaton93: The Championship is fucked 🤷🏼‍♂️ a new club every day is facing points deductions/administration

@ConnorParker10: Dropping like flies, us going first could be the best thing to happen to us

@louise_pne: Yet another club in trouble …

@jcw_72: Be the most Sheffield United thing ever , win enough points for promotion then have 12 points deducted to miss out 😏

@luton_up: Never hope other clubs go into administration… but… I mean… it’d be a massive bonus from a selfish pov. Going to be interesting watching this go down

@SeanFuery: Football outside the top 15 is dying. Arent they still on parachute payments too?

@PrawnSlummer: The next chapter in being a Blade… administration stops is getting promotion 😩

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