The Premier League has docked Sheffield United two points, due to be taken away from the South Yorkshire club in the 2024/25 season.
Sheffield United is currently bottom of the Premier League table in 20th position with just 16 points. The team is nine points away from exiting the relegation zone, with seven matches left to play.
The most likely outcome of the Premier League season is that Sheffield United will be relegated back to the EFL Championship andregardless of the clubs’ finishing position, the points decision will still apply in the second tier of English football.
The Blades have been hit with the deduction due to defaulting on payments made to other clubs during the 2022/23 season, when it was competing in and secured promotion from the Championship.
As a result, the team will start next season on minus two points. A second points deduction could also occur in the event further payments are defaulted on.
A Sheffield United statement has acknowledged the club’s situation, and it does not seem like the Blades plan to appeal. The statement read: “The club has cooperated with the EFL to reach a negotiated settlement on the issues in question.
“While disappointed to have the deduction imposed upon the return to the EFL and highlighting that awaiting overdue monies from several other clubs affected Sheffield United’s financial situation, the club took the view that it was better to reach an agreement which minimised the risks of a higher deduction or further transfer embargoes being imposed, and being distracted by lengthy and costly legal proceedings.
“The club is now in a position to close this matter and concentrate on the future.”
Financial management, sustainability and fairness have become a key area of focus for Premier League officials in recent months. This has been broken down into two areas – financial fair play (FFF) and profit and sustainability rules (PSR).
The former is perhaps best demonstrated by the extensive investigation into Manchester City for 115 alleged violations of FFF dating back over a decade.
The latter, meanwhile, revolves around clubs’ ability to remain financially sustainable, and breaches of this have led to respective points deduction of six – reduced from 10 on appeal – and four against Everton and Nottingham Forest.
PSR basics state that clubs can make an average loss of no more than £35m per year, totalling £105m over a three year period. Additions are planned for this, however, such as a potential ‘luxury tax’.
Premier League clubs have also reportedly agreed to a new transfer, agent and wage fee cap. A 70% cap will be applied to revenue for those teams competing in European competitions, whilst an 85% cap will apply to those not competing in European club competitions.
