Blades hit by cost of Tevez affair
SHEFFIELD United today announced it made a £3.5m loss last year and saw turnover drop by 25% as chairman Kevin McCabe said he could “only ponder” as to what the figures would have been if the club had not been hit by the “Tevez affair”.
Mr McCabe said that while the Championship club had reduced its bank debt by £7.2m in the year to June 30 its year-end results had been hard hit by relegation.
The club is pursuing more than £30m of compensation from West Ham after independent tribunal ruled the club broke Premier League rules when they played Tevez at the end of the 2006/7 season and that he then went on to play a key role in keeping them up.
The Blades reported an operating loss before interest and tax of £3.5m compared to a profit of £2.7m the previous year.
Turnover in the year to the end of June was £32.1m – a reduction from £44.2m of 2007, arising from United’s relegation from the Premier League in May last year but helped by the success of its off-the-field interests.
Mr McCabe, said: “One can only ponder as to the potential turnover and profitability that may have been achieved were it not for the circumstances and events emanating from the media named “Tevez affair”. Sheffield United are now a robust, strong and proud club who will simply not back down or walk away from tackling head on those organisations responsible for the shameful actions and events that have tarnished English football.”
He added: “Here at Sheffield United we must do our utmost to plan and reposition all divisions of the group – none more so than football – talking cognisance of the negative factors facing the UK economy.”
Jason Rocket, chief executive, added: “The improvements in our management team, the robust business model we have developed over the last few years and the geographical spread of the business should safeguard us from the worst of the effects of the current downturn.”
The club’s plc has appointed Simon Argall to its board as operations director.
Mr Argall has worked for the plc since August 2006, firstly as head of leisure and then as head of operations.
The 40-year-old has played an important role in the delivery of the Copthorne Hotel Sheffield at the club’s Bramall Lane on time and on budget.
Prior to joining the Blades, Mr Argall worked as a senior regional manager for the Esporta brand of health clubs having previously held a number of senior positions at brewery Greene King.
The club said it is the best supported team in the Coca Cola Championship with an average attendance of 25,648 and 19,000 season tickets.
Next month sees the opening of the 158-bedroom four star Copthorne Hotel at Bramall Lane.
The club also owns Chengdu Blades in China and top Hungarian team Ferencvaros where former players Bobby Davison and Craig Short are coaches.
Mr McCabe said: “The world of football will inevitably change as monies available to fund player wages, transfer fees, agents’ costs and the like diminish. There will always be exceptions to the rule but the many ingredients that have created the present environment means that quickly adapting to the changed circumstances is to be a key factor for the future health and wealth of clubs certainly in the next 3 to 5 years. Here at Sheffield United we must do our utmost to plan and reposition all divisions of the group – none more so than football.
“Our ambition has been and firmly remains for Sheffield United FC to regain promotion back to the Premier League.”
He added: “We must not rest on our laurels. Our intention is to ensure that Bramall Lane maintains its position as one of the finest stadiums in the North of England. Our Master Planning hopes to ensure that the “home of football” will be on the list as a World Cup 2018 venue should England be selected.”
