Sheffield United reported a financial loss of £18.6m this week. Chairman Kevin McCabe announced that he was standing down the next day. He emphasised that his decision was not to do with the financial results but the fact that he is based in Brussels from where he does most of his international property business.
Sheffield United reported a financial loss of £18.6m this week. Chairman Kevin McCabe announced that he was standing down the next day. He emphasised that his decision was not to do with the financial results but the fact that he is based in Brussels from where he does most of his international property business.
McCabe’s £60m in loans and shares are underpinning the club. According to McCabe, the club are carrying a wage bill that is £2m or £3m that they can afford. Warning of what sounded like a bleaker future he said, ‘I’m a fan of our club but I have to put on another hat. I’m responsible for ensuring we survive rocky times in good financial health. If you’ve got debts, you have to repay them [not what has happened up the road at Hillsborough with the Co-op Bank loan]. The country is in disarray and it will get worse.’ [It’s not clear which economic forecasters he uses].
Broadly speaking, there are two types of clubs in the Championship. There are those clubs for whom getting there and staying there is the summit of the ambition. I won’t name names because the fans get upset, but most of them recognise the realities of the situation. The second type of club is those, like the Blades, who have been in the Premiership and want to get back there.
The problem is that ambition often leaves to over spending, as distinct from a club like Burnley which uses a season in the top flight as a chance to boost their finances. McCabe commented. ‘Many clubs have not speculated as we have, Sheffield United have been among the top payers, we’ve speculated to get promotion – we’ve not succeeded. Now the concept is to sensibly wheel and deal.’
Although it is not thought that the Blades are going to immediately offload players, but with a 20th placing in the Championship, it may be that plans for promotion are effectively being put on hold.