New Blades boss will need to walk in with eyes wide open to our problems, says Birch

Birch has also warned the club's next manager that he will need to help address the current problems at Bramall Lane.

With Gary Speed leaving to take the Wales job, the Blades are now seeking a third manager in the space of just four months. There are also changes in the pipeline at boardroom level with Plc directors Mike Farnan and Simon Argall about to leave the club as part of measures designed to streamline operations at Bramall Lane.

The Blades, who were a Premier League club just three years ago, recorded losses of 18m last season and are now locked in a battle to avoid relegation to League One.

"For all clubs in the Championship or below, these are difficult financial times. We reported heavy losses last year but feel we are in good shape going forward," said Birch.

"Anyone who comes into any club has to be aware of the financial restraints, particularly a 'non-parachute' club. They will need to be walking in with their eyes open in terms of where we are.

"We have come out of a year where we have incurred a big loss and we are trying to re-balance our books. They will have to share that kind of strategy."

Birch is leading the search for Speed's successor but, as reported in yesterday's Yorkshire Post, coach John Carver is now in caretaker charge and has the opportunity to land the job on a permanent basis.

Carver, who worked under the late Sir Bobby Robson for many years at Newcastle, joined the Blades only four months ago but has managed American side Toronto FC and was caretaker manager at Leeds four years ago.

"We won't be rushed into an appointment and we don't rule out promotion from within," said Birch. "We will see what is out there but John Carver's name is on the list.

"It depends what his ambitions and ideas are. He is an experienced coach who has undertaken the role previously so we have no concerns that he can discharge his duties diligently and successfully. We have not talked to him in great detail but he welcomes the opportunity to step up to management."

Birch feels it 'highly unlikely' that Carver will be offered an opportunity to join the Welsh set-up and the 45-year-old will be assisted by coach Sam Ellis and club captain Chris Morgan, who is recovering from knee surgery.

The Blades sit just one point above the relegation zone ahead of Saturday's home game with third-placed Swansea City and are about to enter the busy festive and New Year period.

"We are not in a great position in the league but we have confidence in the management and team that are left," said Birch.

"The players know they are under-achieving but there is not that much wrong, it is just a case of not making mistakes.

"If the process takes longer than two weeks and, if he has won a couple of games, maybe John will throw his hat into the ring. I don't think he will say here and now that 'I want to be the manager' because he is still very committed to coaching."

Former Hull City manager Phil Brown and ex-Portsmouth manager Paul Hart have both expressed an interest in the job while former Blades defender Chris Wilder, now manager of Oxford, and Port Vale's Micky Adams are other possible contenders.

The Blades received around 250,000 in compensation for Speed but would prefer not to spend that on compensation for a manager currently under contract.

"This job will have a great pull for many managers," insisted Birch. "If you saw the list we have, you would see that people still view us as a big, big club. The phone has been quite hot but we will take our time to get the right man.

"We want someone who shares our developmental aims, our playing style aims, and who will work very closely with (Academy director) John Pemberton. What I want, in three to five years, is to have seven or eight homegrown players in our first team. That needs to be the way forward."