Why Sheffield United provide the first test of the IFR’s powers

The Championship club have attempted to distance themselves from the saga.

It is “a matter between the current owners and former owner”, according to a statement issued by the Blades after CBSL was wound up.

The club did not respond to requests for comment.

In 2009, Southampton’s parent company, Southampton Leisure Holdings, went into administration. The south-coast club tried to argue it was a separate entity. An EFL investigation disagreed, with Saints docked the mandatory 10 points.

Sheffield United’s situation is not quite the same, but the parallels are there.

The EFL says it will “consider the implications” of last week’s developments and weigh up “whether any further action is required”.

For Sheffield United fan James Kemp, better known as Blade on a Bike for this charity fundraising, it “just beggars belief”.

“Do they think they can just change company names to avoid paying what they owe the previous owner?” Kemp told BBC Sport.

“It’s just not the way to go about business. So in my view, I think there will be sanctions.”

Regulation 12.3 allows the EFL to consider an insolvency event which happens to any company linked to the football club, like with Southampton.

If the EFL board considers CSBL to be financially connected to the Blades, the club may face the prospect of a 12-point penalty this season.

Then appendix 3, clause 10 demands advanced notice of at least 10 days for any planned transfer of ownership.

And here is where it gets more serious for the Championship club.

BBC Sport understands that neither the IFR nor the EFL were informed by Sheffield United that they were changing their ownership structure, nor that Timothy Ryan had been added to the board.

The Football Governance Act, which created the IFR, prohibits anyone from becoming an owner or director unless an application has been made and the IFR has determined they are suitable.

So this is not just about the unpaid debt, but also the transfer of assets and approval from the IFR and the EFL.