Sheffield United’s owners face a winding-up order in the High Court on Wednesday which could mean the club incur a 12-point deduction in the Championship this season.

The case is related to the purchase of the club in December 2024 by COH Sports Bidco Limited (CSBL), an American-based consortium.

CSBL agreed to buy the Blades for just over £100m but, according to the club’s former owners United World, still owes more than £35m from the deal.

The winding-up petition was filed against CSBL – not the football club – on 8 July, and is due before the High Court on Wednesday.

If the £35m is not paid, or an agreement is not reached, CSBL could be wound up.

It is a very complex situation clouded by the movement of shares in Sheffield United into a new company.

So will the club really face a points penalty?

Saudi Arabian Prince Abdullah bin Mosaad Al Saud bought 50% of Sheffield United in 2013, before acquiring the rest of the club in 2019.

Prince Abdullah’s time in charge was not without controversy, only securing the other 50% of the club following a long High Court battle.

When United World, the company through which Prince Abdullah owned the club, sold to CSBL the story did not end there.

The Blades were deducted two points in the Championship last season because of missed transfer payments under Prince Abdullah in the 2022-23 campaign.

CSBL made an initial payment upon close of sale, but the first instalment – due last year – was late and paid only after a statutory demand, and sent on the deadline.

This High Court date comes down to another £35m payment, a debt which the new owners have not denied is outstanding.

Here is where matters become complicated for the English Football League (EFL) and its regulations.

In June, the shares in the club were transferred from CSBL into a new US-based company, 1919 Partners LLC, which became the “parent company of Sheffield United”, external.

In effect, CSBL no longer has any say in the running of the South Yorkshire club.

But even though Wednesday’s court case is against CSBL, there is still a link to the Blades.

CSBL is led by businessmen Steven Rosen and Helmy Eltoukhy, who remain on Sheffield United’s board as co-chairmen through 1919 Partners LLC.

On Monday, United World issued a statement in which it claimed the creation of 1919 Partners LLC was “an attempt to avoid paying CSBL’s creditors”.

It added that since the winding-up order was issued no offer has been made to settle the debt and that Rosen and Eltoukhy are “trying to take the club without paying for it”.

Sources close to the Sheffield United ownership then issued a statement which did not directly address the accusations.

“We are disappointed Prince Abdullah is trying to hurt the club and its supporters with publicity stunts,” it read.

“The deal between sophisticated parties in 2024 was well-advised by his financial advisors.

“Sheffield United is financially healthy, unlike under Prince Abdullah when the club incurred a points deduction for missing payments to football creditors.

“Nonetheless, Helmy Eltoukhy and Steven Rosen invited Abdullah to reinvest in the club and join the ownership of Sheffield United and to help use his skills to support our promotion efforts.

“Helmy and Steve are focused on the sustainability of the club and the season ahead.”

United World responded on Tuesday, adding in a statement that “sophisticated and well-advised parties pay the price they agreed”.

“An offer of shares in the company that was sold, instead of the money owed for it, was not part of the agreed deal and is not payment,” it added.

“If Sheffield United is as financially healthy as its owners claim, and the owners themselves have the means they are widely reported to have, then the money can be paid.

“Paying it would answer all questions about the club’s situation at once. Instead, the owners are running a club they have not paid for and the club’s financial health, such as it is, is the result of the owners’ scheme to avoid paying for the club.”

Neither the EFL nor the Independent Football Regulator (IFR) has commented on the share transfer to 1919 Partners LLC.

When approached by the BBC, the IFR confirmed it was in contact to gain more information about the events.

“We are aware of the winding-up petition in relation to COH Sports Bidco,” the IFR said in a statement on Tuesday.

“We are engaging with the club and relevant organisations on this issue, but we cannot comment further at this stage.”

Unlike when a club goes into administration, a ‘group undertaking’ – a company rather than a club – suffering an insolvency event is a more nuanced situation.

The regulations direct the EFL board to take into account a number of factors, including “the need to protect the integrity and continuity of the competition” and “the reputation of the league”.

If the High Court chooses to wind up CSBL, then it does present a clear question for the EFL.

A club’s owners could be considered to have moved shares into a new company to leave a sizeable purchase debt in the previous company, and effectively write it off.

That alone could be considered a breach and result in sanctions from the EFL, and the board could choose to impose a 12-point deduction for an insolvency event.

Though not a direct comparison, in 2009 Southampton were docked 10 points by the EFL after their parent company went into administration.

An investigation found the football club and the parent company were “inextricably linked as one economic entity”, and applied their mandatory penalty.

“As the former owners of SUFC, United World does not want to see SUFC facing months of uncertainty that will follow the winding-up order being granted on 19 August,” the statement from the former owners added.

“But in the absence of Eltoukhy and Rosen, both billionaires, agreeing to pay what they owe, we have no alternative but to take all legal steps to protect our interests.”

The next step is the High Court on Wednesday.

If there is no compromise before then, or if the winding-up order is issued, this story has a lot further to run.