Sheffield United could incur a 12-point deduction after the company used to buy the club was placed into liquidation by the High Court on Wednesday.
COH Sports Bidco Limited (CSBL) agreed to purchase the Championship club for just over £100m in December 2024 but about £35m was still owed on the deal.
A winding-up petition was filed last month against CSBL by United World – the club’s former owners.
CSBL – headed by United co-chairmen Steven Rosen and Helmy Eltoukhy – had no representation at the High Court hearing, which lasted about 10 seconds.
A statement issued by the former owners said they had made “every effort to resolve this matter amicably” but had “received no response”.
A Sheffield United spokesperson said: “Sheffield United Football Club is aware of today’s hearing at the High Court.
“This is a matter between the current owners and former owner.
“The football club is in contact with the English Football League and the day-to-day operations at Sheffield United are unaffected.”
A complex situation is clouded by the movement of shares in the club into a new company in June.
As a separate company – not the football club – has been wound up, there is no automatic punishment from the EFL for an insolvency event.
The EFL said it would consider the implications of CSBL’s liquidation “including whether any further action is required”.
“In addition, the EFL continues to consider other regulatory matters following changes to the club’s ownership structure and developments within the wider group,” a spokesman added.
The Independent Football Regulator (IFR) said it was “examining the court’s decision on COH Sport in detail” and was “in contact with the club and the EFL”.
A spokesperson added: “The IFR can assess an incumbent owner’s honesty, integrity and financial soundness under its Owners, Directors and Senior Executives regime, should it have grounds for concern.”
So will the club really face a points penalty?
