Sheffield United Set For Arbitration Battle As $6 Million ‘Agreement’ Collapses

Premier League side, Sheffield United may not be involved in any competitive fixtures at the moment due to the league’s suspension for COVID-19—however, there’s a battle set to take place off the pitch once again, in the High Court.

Blades owner, Prince Abdullah is heading for another set of legal proceedings with ex-business partner Kevin McCabe, after failing to agree the sale of Sheffield United and its properties; including Shirecliffe academy and Bramall Lane—the club’s home ground.

In September of 2019, the High Court issued a substantial judgment resolving a shareholder dispute between the co-owners of the Premier League club, following an expedited trial heard over five weeks in the summer of 2019.

Mr Justice Fancourt ruled Mr McCabe must sell his 50 percent stake to the Prince for $6 million (£5 million), substantially less than the club’s half value of $75 million (£62 million).

Mr McCabe, a self-proclaimed lifelong Blades fan, issued a statement after September’s judgement saying he was ‘bitterly disappointed’ and, at the time, was considering an appeal.

Despite Mr McCabe’s $120 million (£100 million) investment into the club over a number of years, he was refused permission to appeal.

As well as receiving authority to buyout Mr McCabe’s 50 percent stake, Prince Abdullah was also allowed to buy club properties from McCabe’s Scarborough Group company. Sheffield United tonight issued a statement saying that:

“This deal will no longer proceed as the Scarborough Companies wanted more money and more concessions from the club than they agreed initially.

“As a result, the club has no alternative but to resort to arbitration under the Property Call Option Agreements to determine the purchase prices for the properties and to ensure they are transferred to the club. It also appears that the Scarborough Companies have withdrawn their offer to sell the Kop Sites.”

“The club will take all necessary steps to ensure that Bramall Lane remains the long-term home of SUFC,” the statement continued.

“We will also vigorously defend any claims put forward by SUL [Sheffield United Ltd, the company run by Mr McCabe and his family], including the outrageous suggestion put forward in the litigation that the price that SUL wants the club to pay for the stadium should be on the assumption that SUFC leaves Bramall Lane with the site being developed for residential housing.”

The lack of movement by Mr McCabe to follow through on September’s High Court judgement, led to a source close to the club saying:

“Mr McCabe has ruined any goodwill amongst Blades fans that was left. It’s such a shame. Once loved amongst his people the man from the city will now be vilified due to his actions. He knows he won’t win, this will just impact the club he claims to love.”

Before the enforced suspension to the Premier League, Sheffield United had climbed into seventh place—two points behind fifth placed Manchester United and five points behind Chelsea, who occupy fourth.

As it stands either of the higher places could lead to European qualification next season for the Blades, with the UEFA Champions League even becoming available to fifth place—depending on Manchester City’s appeal against a two season ban for breaking UEFA financial fair play rules.

Should the Yorkshire club qualify for UEFA’s premier competition it could be worth in excess of $30 million (£25 million).

Clubs receive $15 million (£13 million) for qualification to the group stage with a further $2.9 million (£2.4 million) per each group stage win and $970,000 (£811,000) per drawn fixture.

A statement issued on behalf of Scarborough International Properties Limited (SIPL) placed the breakdown of the agreement with Prince Abdullah.

“Agreement in principle was reached in January for Sheffield United FC (under the ownership of HRH Prince Abdullah bin Mosaad bin Abdulaziz al Saud) to acquire from Scarborough the freehold of the Bramall Lane Stadium” (together with the other properties).

“Although it was expected that formal contracts – the detailed contents of which had been settled – would have been exchanged with completion to occur prior to 31 March this year and thereafter extended to the end of April, until Prince Abdullah withdrew his offer earlier this month” the statement concluded.

Sheffield United subsequently confirmed that negotiations will now go to arbitration, with a date as yet unknown.