Seizing the Moment

When I last wrote on A United View I looked forward to the season with a degree of optimism. Optimism that, as things stand, seems well placed, notwithstanding the recent run of results.

The football, the odd game aside, remains as expansive and as exciting as that which saw us soar to the League One title. Memorable away victories at Leeds and Hillsborough, an amazing comeback at home to Hull and the bizarrely topsy-turvy defeat to Fulham, each showcase what Wilder's Blades are all about.

The injuries to key players, something we were lucky with last season, and suspensions have hit hard. Yet within that 5 game run without a win, you could argue we were worthy of 3 points against both Birmingham and Bristol City and a point against Fulham. In some ways Wilder's pursuit of 3 points at the expense of 1 has gone against us, but the positives of his approach can be seen in the league table where the other lot across town have lost fewer games than us but still find themselves 10 points behind in the table.

The challenge of losing key players in Coutts and Fleck has yet to be overcome and replacements have either not grabbed their opportunity, or do not fit the system that the Coutts, Fleck, Duffy triumvirate excel in. Yet still we sit 6th. Our start giving us a tremendous platform to push on for a chance at promotion that few people would have thought possible back in early August.

Back at that time I posed the question, if we find ourselves in the Top 6 come January will the board invest? I said yes I believed they would. Opportunities for promotion are not guaranteed in this division. A strong finishing position one season does not necessarily lead to a similar outcome the next. Ask Reading, Derby, Middlesbrough, Norwich or Brentford in recent years, or look across the city this season. Therefore when you are up there with a platform to progress why wouldn't you take that gamble? Who knows when that opportunity presents itself again? When you have caught the division cold, playing with confidence and a successful system, seeing little to fear in the opposition we have faced, it is surely the right time to back the manager with the funds he believes necessary to compete for a Top 6 place to the end of the season.  

The owners' stated aim is Premier League football. That is the only realistic way the McCabe family achieves any sort of recompense for the millions invested and loans written off over a number of years. For the Prince, his money has been thrown at a football club with no real assets and whose losses he is propping up each season. Top tier football offers his only realistic means of financial return.

That's not to say that I am advocating spending big. When I suggested on Twitter that this is the time for the board to step up, some responses suggested that we couldn't go spending £10m on a player and that such statements are easy when it's not your money. The latter is correct, but if you don't give the manager the tools now, when will you? In 2 or 3 years after consolidation, but when the financial trickle-down from the Premier League means the sums required are even more inflated than they are now?

I certainly don't advocate spending silly sums on individual players. Our success is built on a team spirit and work ethic that I have not seen at the club since the back to back promotions under Dave Bassett in the late 80's. Wilder finding players with the hunger to grab the opportunity we have presented them with. The lower league talent needing a bigger platform, or those not gambled on by their clubs after injury or loss of form. The Premier League loanees whose clubs see a way to build their experience playing football the right way in front of a large and demanding fanbase. Why upset the wage structure? Why fracture a whole that is arguably greater than the sum of its parts?

Instead, give the manager enough money to make the signings he wants to make. Signings that enhance the starting XI, provide alternative options from the bench, but also fit a style of play that has been hugely successful but is perhaps lacking the zip of the last 12 months. Whilst there is an argument that you don’t get best value in January, August means starting again. It means hoping we get to December with 35/40 points, it means hoping summer signings gel. Bringing in the players now, gives both impetus to the current season’s objectives and beds those players into the squad to push again next season, if we were to fall short this.

Much is made of Chris Wilder being a Blade. That is great, many fans would love their manager to have the connection with the fans that we enjoy. Yet he is human and will surely be ambitious. Clubs will see his success and he moves on to radars that he was off twelve months ago. If they offer him resources to achieve further success, resources that don't exist at Bramall Lane, then I think it is fair to assume that his Blades bonds aren't unbreakable. Everyone looks for an opportunity to shine; to do the job to the best of their ability at as high a level as is attainable. If there was a time to back Wilder it is now.

The question is, will he be backed? When Simon and Scott McCabe resigned from both the SUFC board and the Blades Leisure board (the entity in which the football club is held) in September, it was said that they were busy and had their families to focus on, alongside which Prince Abdullah wanted to be more involved. This followed the appointment of the Prnce to the board of directors on the 4th August along with Yusuf Giansiracusa, who replaced Selahattin Baki as one of two representatives of the Prince on the board.

In October, Tareq Hawasli (the other representative of Prince Abdullah) appeared on Alan Biggs’ Sheffield Live show and stated that they “wanted to make a strong push to make the Premier League and that’s the direction we are heading towards”. He then stressed the importance of supporting the development of the academy products, securing the star players in the squad at that “Coach Chris is supported in anything he needs, as long as we can”. Then re-affirming that the board is active and very supportive of “Coach Chris”.

This collegiate working and leadership sounds great and would be happily accepted, but for an unusual amount of activity on both the SUFC and the Blades Leisure boards over the last 4 months. Since the 8^th August there have been 6 terminations and 7 appointments to the SUFC Limited board, but this masks multiple ins and outs.

Following their departure on  7^th September, Simon and Scott McCabe were re-appointed on 13^th December. Football club Chief Executive Stephen Bettis has been doing the hokey-cokey; standing down as a director on 4^th August, re-appointed on 9^th September only to stand down again as the McCabe’s returned on the 13^th December. In addition Jeremy Tutton was appointed a director in this period and Martin Green was in, then out, then back in again. Whilst this might seem like corporate manoeuvring detached from the football club, it seems to conflict with the words used elsewhere. 

What has changed such that Scott and Simon McCabe need to be back on the board and what has happened to the trust Kevin McCabe placed in Martin Green, Stephen Bettis and Jeremy Tutton just three months previously.

“They will be dependable representatives for the McCabe Family as Directors liaising with our now more active partner and his nominated colleagues in order to ensure the Club continues to progress in a stable manner.”

At the recent AGM Kevin McCabe said the intention was for the Prince to play a bigger role at United and that he had more time now he was free of government responsibilities. Yet at the same time he only thought the prince was okay as he hadn’t seen him for two months. To a fan listening in this is concerning and there is little evidence to reassure that things are as rosy as was painted just three months ago.

Nobody really expected us to be where we are and we should absolutely enjoy the ride we have been on in the last fifteen months. To paraphrase what fellow blade @ScholarRob on Twitter said, whatever the result at Villa, celebrate all we have seen, enjoyed and loved following the Blades in 2017.

But that doesn't mean we shouldn't expect more and it doesn't mean we should settle for consolidation when a much bigger prize is potentially within our reach. If we were mid-table then this clamour would not be there. Even in the position we are in some may say it is a gamble, but if the board don’t seize the moment now, when will they? We can keep holding on for tomorrow, but what if tomorrow never comes?

Up the Blades!

Prince and The (Sheffield) Revolution

The several hundred Blades fans at Scunthorpe for the Johnstone's Paint Trophy tie were still in dreamland. "We're so rich it's unbelievable!"…"Shall we buy a ground for you?" The announcement that morning of the purchase of 50% of the football club by Prince Abdullah bin Mosaad bin Abdulaziz Al Saud had left most fans slightly shell-shocked, as the media bandied around million/billion pound figures of the Prince's net worth. Yet underlying the braggadocio of the chants was an inherent nervousness; a feeling of disbelief, that this cannot really be happening at Bramall Lane.

 

 

 

 

To those surprised by this edginess you only have to look back at a list of United's previous chairmen and some of the potential owners who, thankfully, never got their hands on the club. From the country's biggest white collar fraudster, to an Iraqi businessman later to undergo gender realignment - before a subsequent reversal. From a chairman subject to an international arrest warrant to a fugitive still on the run from Interpol and a London socialite known as "The Count" who had indirect connections to Libyan arms dealers. Then throw in the tempestuous time when Charles Green acted as Mike McDonald's axe-man.

 

During Kevin McCabe's reign as chairman and owner there has been the rebuffed interest of Singaporean businessman Joe Sim, as revealed in a Channel 4 Dispatches investigation, the interest from Malaysian Vinod Sekhar (who survived a bankruptcy claim in his own country) and the recent revelation from Kevin McCabe that he turned down an offer to buy the club from Carson Yeung back in 2007. Who can blame fans for being a little cautious?

 

You only have to look elsewhere to see the case for caution strengthened; Venky's at Blackburn Rovers, Cardiff losing their identity and history, Hull City Tigers, the problems caused by consecutive owners at Portsmouth, both Liverpool and Villa finding that big money US takeovers are no guarantee of success.

 

I think in the case of United the retained interest of the McCabe family, owning the other 50%,  should give us comfort; acting as custodians of the club's past present and future. For the deal that has been done, Kevin McCabe and his family deserve credit. Both he and the Prince have been quick to reassure us that the focus on the club as part of the community and its rich history is, and will continue to be, respected.

 

But despite the seemingly beneficial nature of the deal and an outcome most fans would seem happy with, it doesn't mean to say that we (as fans) didn't have the right to question what had gone before. Many fans (and this blog) have questioned the true motives regarding the transfer of theground and other assets into the Scarborough owned plc. and the losses incurred in acquiring and running overseas clubs in geographies seemingly motivated by real estate opportunities than burgeoning football interest.

 

The separation of stadium/hotel/academy from the football club remains a risk, although there is less talk of an exit plan from the McCabe family which gives some comfort. His stated motives at the time of the asset transfer; of creating an easy investment in a "clean" football club, free of debt and other costs appears to have worked. Whether you see that as clever move that has paid off or someone that has struck lucky is up to you.

 

At the time I struggled to see the desirability of such a deal for an investor and any return for the Prince can only really be realised by two promotions. It may be that he believes this is achievable and for a £1 up front cost that may be a risk worth taking for a man who professes to love football so much. For the McCabe family they retain their sole interest in the fixed assets of the club, a significant amount by which to secure and recover some of the multi- million pound investment over their tenure.

 

Too many times in the past, fans have sat back and accepted that people are acting in the best interests of their club without questioning the true motives. That lack of curiosity, the absence of a questioning approach, the willingness to take everything at face value has left some clubs in dire straits. Yes it was Kevin McCabe's money that was used to plug the holes left by poor decision making; yes he funded the follies and legacies of apparently trusted lieutenants in Terry Robinson and Trevor Birch, but over that time considerable finance was provided by the supporters. There needs to be acknowledgement that fans are stakeholders (both financial and emotional), something that fans' pressure groups are ensuring that clubs recognise, particularly outside the Premier League and at those clubs where the parachute payments have expired and times are leaner.

 

If you doubt this, consider the amount of turnover generated, both directly and indirectly by supporters of Sheffield United. In the financial statements to 30 June 2012 gate receipts accounted for £4.5m of United's turnover of £10.3m. Sponsorship, royalties, merchandise and advertising (much of it funded by fans as well) accounted for a further £3.6m of the £10.3m. The fact this barely covered half the costs is due to decisions made by the owners and board of directors. The club kept a Premier league infrastructure for too long and gambled heavily in the wrong areas. The McCabe family got in too deep and have fought to extricate themselves from it, at great cost.

 

Never underestimate the fans' input into the financial well-being of a football club; whether it has a benefactor or is run as a fans' trust or community club. Football without fans is nothing. Yes McCabe has put in close to £90m during his reign a large proportion of his wealth, but what about the fan that spends upwards of £2,000 a year following his team home and away? That could be up to a quarter of some fans' net annual earnings. A not inconsiderable amount, unconditionally spent and often in blind faith.

 

So how will the injection of Saudi millions affect United going forward? The answer is that it is difficult to predict. Getting out of League 1 this season is far from certain. In David Weir we have a manager trying to impose his ideas on a squad of players that is gradually evolving into his team and he has lost the key player that his pre-season preparation and 4-2-3-1 formation was built around - Kevin McDonald.

 

On his appointment in the summer I stated he would need time and that promotion may have to wait for a season, whilst the squad is over-hauled and he builds a strong team with the work ethic and style he demands. Even with an injection of money I don't see that changing. It still looks like we have square pegs in round holes and although you can see what Weir is trying to achieve, the pretty passing is only getting us so far down the pitch and a lack of goal threat, never mind goals, is a concern.

 

Sadly fans are getting impatient already and defeat at Rotherham on Saturday could leave United in the bottom four. If the fans get twitchy, will the new joint owner exercise restraint? Interestingly, in an interview with Radio Sheffield Kevin McCabe referred to the Saudi money being used on improving the playing side "and better management staff, perhaps".

 

Another factor in limiting the impact of any cash injection is the Financial Fair Play rules. While ever United are in League 1, salaries will be limited to 60% of turnover. This means that any money will be used on transfer fees for players that will still need to fit in with the existing wage structure that will not take the wage bill over the cap.

 

I have seen some Blades criticising the timing of the announcement, just after the transfer window closes, but I suspect with the limitations on wages we were limited in what we could achieve with the cash anyway. It is also worth bearing in mind we have paid fees for Lyle Taylor, Jose Baxter and Florent Cuvelier, which could well be a sign of monies being advanced ahead of the official announcement.   

 

Yes there are ways around the rules, through creative sponsorship and advertising deals, but the need for a financially sustainable club has been emphasised as an objective in the past and certainly appears to be something the Prince is keen on in initial statements. That money is not frittered away without good reason and having a club that balances its books will be important if promotion is achieved. 

 

The differing FFP rules will have a different impact if and when United achieve reach the Championship. From this season clubs must restrict their losses to a maximum of £3m, however if an owner is willing to convert the losses to equity (without funding this via borrowing) the limit increases to £8m; in effect costing the owner up to £5m. The limits reduce year on year and by 2015-16 will be £2m or £5m if the difference is converted to equity.

 

This could be a reason for the lack of funding across the city where Wednesday (reportedly making losses of £5m a year) spent little in the transfer window. At a time when he is actively trying to sell the club, Milan Mandaric would risk increasing his asking price considerably or being required to invest money he may never recover. Let's not forget in the last financial statements United were making a loss of £13m and whilst this year's results are yet to be announced they will do well to have halved that deficit.

 

Concerns have been expressed that the Prince is not as loaded as the inflated figures first reported, personally worth £93m according to Forbes, yet the reality is that it may not need a significant amount of that wealth invested in United over the next couple of years. In an interview, post announcement, Simon McCabe said the expectation and objective was that it would take £20m and three years to get back to the Premier League. My fear is that is asking too much too soon; at the very least a promotion this season, or back to back promotions from League 1 to the Premier League. Oh for the heady, pre-Premier League, days of 1988-1990 when we achieved this under Dave Bassett.

 

Significant overseas money is no guarantee of success or a return to the Premier League; just ask Leicester, Nottingham Forest, Blackburn Rovers, but I guess there is little harm in setting targets and showing some ambition. The club may need to carefully manage expectations though, especially when the initial buzz of the investment has died down.

 

The Prince is reportedly a big fan of Fantasy Football. Most people I know who play Fantasy Football  lose interest part way through a season, when the transfers haven't paid off  and they are too far adrift of the prize money in their local league. Let's hope that he doesn't lose interest if the three year plan is delayed and that he is in this for the longer term as promised. This isn't fantasy football; it is real life, with real people, real employees and real stakeholders.