Finance expert’s verdict on Sheffield United loans development after takeover hopes raised

Sheffield United have settled a series of lending arrangements with Australian bank Macquarie ahead of their return to the Premier League, leading a section of supporters hopeful that a takeover agreement may be close to completion.

United had taken out a number of loans from the bank in recent seasons based on various income streams, including parachute payments from the Premier League and transfer receipts from Arsenal after selling Aaron Ramsdale.

Documents released by Companies House this morning confirmed that seven such arrangements had been settled by United, with approval from Jones Day - the former law firm of United chairman Yusuf Giansiracusa.

That led to speculation in some quarters that a takeover could be close. United’s ownership future has been uncertain since the back end of last year, when current incumbent Prince Abdullah accepted an offer from Dozy Mmobuosi for control of the Blades. But the Nigerian businessman has been unable to satisfy the EFL’s requirements to take over and his exclusivity period has since elapsed, with other parties subsequently expressing an interest in succeeding Prince Abdullah at the helm.

As things stand United are progressing under Prince Abdullah’s ownership, with boss Paul Heckingbottom currently working to a budget of around £20m to make United competitive at Premier League level. That figure may yet chance, with the Prince searching for external sources of funding as well as potential new owners.

Rather than splash the cash in the transfer market, United are expected to use the Premier League money to solidify their financial position after a period of uncertainty, which saw them enter a transfer embargo and fail to pay various suppliers to manage cashflow in a bid to seal promotion back to the top flight.

It is understood that satisfying most of the outstanding charges is not particularly significant in terms of any imminent takeover, and more - in the words of football finance expert Kieran Maguire, a “housekeeping exercise”.

“It could be, in terms of transfer of ownership of the club, that the owners want everything to look as good as possible,” Maguire, a lecturer at Liverpool University and host of the Price of Football podcast, told The Star. “A bit like when you move house and you spruce it up a bit when it's up for sale. Therefore getting rid of any waifs and strays in terms of outstanding loans.

“It could be that the loans have actually finished and they haven't got round to the paperwork yet. It also clears up which assets can be used as security going forwards in terms of future borrowings as well. I wouldn't read too much into it. There's a lot of low hanging fruit in bits and pieces of outstanding debt at Sheffield United and this is a way of clearing it all up.”

United are due to receive their first chunk of Premier League cash this summer after winning promotion and the club may opt to take out new arrangements - with Macquarie or elsewhere - secured agaisnt the rest, which will arrive later in the season. Promotion is worth a minimum of £170m to United across the next three seasons, and more if they can survive in their first campaign back in the top flight.