Blades Say No

By Paul Holland
June 19 2002

Sheffield United PLC says the club is "not considering going into administration" despite the blow of losing a vote on financial restructuring.

The club's plans have been dismissed by shareholders by a majority of two to one in today's Extraordinary General Meeting vote at Bramall Lane.

Acting PLC chairman Kevin McCabe says it is "a sad day" for Sheffield United after the vote went against him and the board.

A period of re-examination will now be entered into and McCabe says it is too early to say what implications this will have for the future of the club.

McCabe told the club's official website: "It's back to the drawing board.

"I'm disappointed by the outcome because a lot of time and effort was spent making plans to provide a sound base for the club to be successful on the pitch and financially secure."

McCabe and his fellow board members were not allowed to vote due to procedures but it is the choice of shareholders representing around 26 million shares not to take part in the ballot which really affected the result. The final figures (in shares) were 5,462,167 in favour of the restructuring plans and 10,034,449 against.
He added: "Supporters should be thankful that our directors have the financial resources to prop up the club in times of difficulty.

"Going into administration has been raised by the media but that's not something we're considering. It's too early to say what measures we shall have to take."

United chiefs were looking to raise a total of £14million, which would have been generated by putting a new £10million bank agreement in place and by issuing £4million worth of new shares.
A large slice of the cash would have been used to pay off existing debts to the current bankers.
Substantial funds were also to be invested in The Blades' Youth Academy at Shirecliffe. United's PLC board still insists that a change of policy is vital to the club's long-term future.