Sheffield United will begin next season with a points deduction if they are relegated from the Premier League this term.
The EFL confirmed on Thursday that the Blades would start “the next season the club is in the EFL’s jurisdiction” with a two-point deduction after defaulting on a number of payments to other clubs last season, when they were automatically promoted from the Championship as runners-up.
Such a punishment also includes a further two-point deduction suspended until the end of the same season that will be applied if they default on any payments to other clubs in terms of transfer or compensation agreements.
Sheffield United currently sit bottom of the Premier League table and nine points adrift of safety with only seven games left to play in 2023/24, having won only three matches during a difficult return to the top-flight.
The EFL’s statement read: “An independent Disciplinary Commission (IDC) has determined that Sheffield United Football Club are to be deducted two points at the start of the next season the Club is in the EFL’s jurisdiction, with a further two points suspended until the end of that same season.
“The sanction relates to the 2022/23 season, when the Club defaulted on a number of payments to other Clubs. These defaults cumulatively were in excess of 550 days.
“The suspended points deduction will be activated if the Club defaults on any payment due to another Club under a transfer or compensation agreement for more than five business days from the due date for payment.
“The Club has agreed to pay the EFL’s costs in the sum of £310,455.”
Sheffield United noted the announcement and said they had co-operated and reached a “negotiated settlement” with the EFL.
“The club's position in the proceedings was that the relevant sums relied on by the EFL had been paid in full, on several occasions only days after they were initially due, or renegotiated with new future payment dates adhered to before the club was notified of the referral,” the Blades said in their own statement on the matter.
They added: “While disappointed to have the deduction imposed upon the return to the EFL and highlighting that awaiting overdue monies from several other clubs effected 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.”