Sheffield United financial state of play after bonus payment ‘issue’ report causes alarm

Fresh concern over Sheffield United’s financial situation has been raised after a national newspaper report suggested that the Blades may struggle to pay bonuses due to players after they sealed promotion back to the Premier League earlier this week.

A Daily Mail headline today claimed that United “can’t afford” to pay the bonuses, reporting “real concern among Paul Heckingbottom’s squad” over when their money will be received after helping to guide the Blades into the top-flight.

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United’s delicate financial situation has been well-documented, with CEO Stephen Bettis moving to quash speculation that the Blades were close to administration earlier this year. Bettis did admit, however, that United are not paying suppliers in a bid to ensure that all available money is diverted to the football side of the business.

Those payment delays are not understood to have affected the playing staff, who are thought to have received their wages on time all season, and United sources insist that there is no issue with the bonus scheme and its payment.

The dates which potential money will be paid out after success is set out in contracts and United’s first windfall of Premier League cash will hit United’s coffers in the summer.

A combination of season-ticket and FA Cup prize money also helped steady the financial ship while United continued their push for the Premier League, which was reached on Wednesday night with a 2-0 win over West Bromwich Albion.

United recently agreed a deal to exit their transfer embargo, striking an agreement to defer the due payment deal into the future and lift the trading block. But that payment is still outstanding and after splashing the cash on the likes of Oli McBurnie, Sander Berge and Rhian Brewster when United last reached the Premier League and the club are still paying the price for some of that transfer largesse. In the last published accounts, made up to June 2021, owed just over £18.25m in outstanding transfer payments.

Those companies and suppliers owed money by United will hope that their arrears are addressed sooner rather than later - especially with some having first learned about the Blades’ plans to not pay them via Bettis’s quotes in the media, after invoices originally went unpaid without explanation - and that will account for some of the Premier League windfall.

As well as the multi-million-pound bonus payments, clauses in players’ contracts saw their wages increased when United were last promoted to the Premier League. United were sensible by imposing two rounds of salary cuts in the seasons since but after getting back in the top-flight, their wage bill will also rise and further deplete the pot of cash.

Often-overlooked factors like energy bills, which have increased dramatically of late, are also eating away at United’s budget while training recently was disrupted after an oil supplier refused to top up the tanks that fuel the undersoil heating at Shirecliffe until a £26,000 bill was settled. Use of software for scouts and analysts was also restricted until United settled their outstanding arrears, with both amounts subsequently paid.

Amongst all United’s outstanding financial commitments, there must also be some cash made available to Heckingbottom’s disposal, either for new signings or to retain existing players - around a dozen of whom are set to leave Bramall Lane on free transfers this summer, as things stand.

There seems little prospect of a repeat of the transfer spend seen after United’s last promotion to the Premier League, with owner Prince Abdullah wanting to make United a self-sustainable club. He is still be open to the idea of selling his stake in the Blades, despite promotion, amid fresh uncertainty over Dozy Mmobuosi’s takeover bid. The Nigerian businessman is known to have fronted a significant, seven-figure sum as a sign of his commitment to taking over the club, with question marks over what happens to that cash should his bid not go through.