Former Sheffield United owner Prince Abdullah of Saudi Arabia was poised to issue a winding-up order on the club over a £10m debt owed to him by new owners COH Sports.
Your Site News can reveal Prince Abdullah's lawyers issued a statutory demand last month, giving the US-based consortium, COH Sports, 21 days to pay the bill. When that deadline came and went, they then gave them a further three weeks to settle the debt or face a winding-up order, which could have put the club in administration.
COH paid a significant sum to take control of the club 12 months ago and after this latest £10m transfer, there remain two outstanding payments to complete the formal takeover. Your Site News understands that almost half of the agreed takeover price is still to be paid in the months to come.
In a letter to the EFL, Prince Abdullah had also raised concerns about how COH might finance the running of the club in the future, but Your Site News has been told that the American venture capitalist group remains fully committed to Sheffield United, and has no plans to sell, nor any concerns that the club will be anything other than fully supported going forward. After this latest legal dispute, they are currently up to date with all monies owed to the previous owner.
COH are currently talking to a number of potential minority investors to try to produce a new influx of cash, and in fact they have held talks recently with Prince Abdullah himself about the possibility of the crown prince re-investing and taking a smaller stake in the club. Those talks ended without agreement.
The Blades were three points clear at the top of the Championship when COH Sports took over, two days before Christmas last year. The team are currently 18th in the table, seven points above the relegation places, after five wins in their last seven matches.
There was no comment from COH Sports when contacted by Your Site News, but they have not disputed the timescales or the amounts payable.
There has also been no comment from Prince Abdullah or the EFL when contacted by Your Site News.
