DUNDEE United finished ninth in the Premier League in 2006.

A year later? Ninth again. On the face of it there was nothing especially significant or different going on within Tannadice, but a change had been made which would take a few years to bear fruit. It would take until about now, in fact. United have produced some vibrant talents in the past few years - notably David Goodwillie, Johnny Russell and Stuart Armstong - and the evidence is there that the production line is still delivering.

Football chairmen purr over successful youth development systems and Stephen Thompson is entitled to his satisfaction. United have just tied Ryan Gauld and John Souttar to extended contracts despite plenty of interest from clubs keen to lure them away. Defender Souttar, 17, could have gone to Sunderland. Gauld, their will-o'- the-wisp attacker of the same age, is said to have made it on to even Real Madrid's radar. Both will leave United eventually but tying them on enhanced terms is a significant step for Thompson. Instead of going under freedom of contract, or for peanuts in the final months of their deals, United have time to get the benefit of them in the first team and still sell them for high fees given they are tied to the club until 2016.

Both were 10 years old in 2006, the year United decided to make a change. "What's happened here with the young players isn't a fluke," said Thompson. "A lot of work has gone into getting to where we are today. We changed the whole youth set-up. At one point the attitude was that we didn't have time to develop 17-year-olds because we wanted things done instantly. We've changed that. The way of thinking has changed massively in the last 10 years or so.

"The first change was about the whole club buying into it and creating a pathway into the first team for these players. There's no point having the right coaches and scouts if there's no chance of them getting into the side. [Former manager] Craig Brewster had brought Stevie Campbell in to work with the youths and Craig Levein implemented other things after that. I remember him saying that I had to keep control of what was going on because managers will come and go. That's what's happened. We have kids looking at United now and thinking they'll get a chance here.

"Stevie Campbell is a father figure to them, he's a social worker. He's everything to them really. When I was looking for a new manager a big part of it was finding someone to buy into the ideas we have about our youth system. Speaking to Jackie [McNamara] it was clear he did that. It was a big part of the interview."

Eddie Thompson, Stephen's late father, was in charge when the new approach was introduced but a change in philosophy was only part of the story. Crucially United had, in guys such as Campbell and Grant, talented coaches who could identify and develop talent, doing so in a way which not only improved the young players but also made them enjoy being with United.

The recent courting of Souttar by Sunderland was a case in point. The teenager would have earned far more there, even without being in the first team, but the advantages of staying at United outweighed that. He even visited Wearside, an act which normally results in an SPFL outfit losing their player once he has had a sight of the usually irresistible Barclays Premier League. "Was I surprised John turned Sunderland down? No, not after speaking to his dad," said Thompson. "His comment was 'there's green grass here as well', which was really good to hear.

"Sunderland treated him well. But when it came down to it, he felt that staying here and continuing to play first-team football was the best plan for him. He would have gone from playing in Scottish Cup semi-finals at Hampden to playing under-21 football at Sunderland. That was a choice he had to make, we left him to make it and we're delighted he decided to stay."

The new contract tied Souttar to United for longer and also improved his salary. Gauld, 18-year-old central midfielder Darren Petrie and 16-year-old full-back Euan Spark all put their names to improved and longer contracts, too. "It's a balancing act because you want to protect the value as well," said Thompson. "They will go - of course they will - but players have left us in the past. We just happen to have a very good crop just now, they're getting called up for Scotland at all ages so it's being recognised. When they do go we want to maximise what we get. We have an exciting team; we're up and down at times but on our day we're as good to watch as anyone."

Thompson now personally holds more than 50% of the United shareholding after his mother, Cath, transferred her 86% stake to her children this week. Cath stood down as a director to be replaced by her daughter, Justine. "It won't change anything on a day-to-day basis," said Thompson. "It's continuity and there's stability at the club. Finances are still tight but that's the same at every club. We've made a profit three of the last four years because we've sold players. We can't afford to pay 11 players two grand a week now, that's why we've chosen to take the course we have of rearing our own."