Derby County FC, a Championship club based in England, has filed notice to appoint administrators.
Derby County, a football club in England, has been put into administration by the club’s owner. The club is now looking to appoint administrators and will be playing in the Championship next season.
Mel Morris, the club’s owner, has been looking for a buyer since June 2019.
Mel Morris, the club’s owner, has been looking for a buyer since June 2019.Derby County are poised to enter administration as a result of their ongoing financial difficulties.
The club, which is for sale, stated that despite talks with a number of “serious parties,” finding a buyer in the near future was improbable.
The English Football League announced that they will be docked 12 points.
The Rams stated in a statement that Covid-19 had a “significant effect” on income and that they “had no option” but to appoint administrators to save the club.
It says that the epidemic has cost them £20 million in lost income and has rendered them “unable to meet its day-to-day financial commitments.”
The statement from the board stated, “We cannot emphasize more how terrible it is to be pushed into this situation.” external-link
“Covid-19 has continuing to have a negative impact on income this season.
“Unlike other industries, football has only been able to decrease its cost base slightly, with the bulk of outgoings being connected with players who could not be furloughed.”
Derby, who are coached by former England captain Wayne Rooney, are 16th in the league after seven games, with seven points.
They’d be minus-five points and ten points from safety after a 12-point penalty.
The Rams are already behind by three points.
Their 2016 accounts, 2017 accounts, and 2018 accounts are already being re-examined after they were found to have violated accounting standards, and they may lose additional points as a result.
The English Football League fined the Rams £100,000 and chastised them for the infraction in July.
Mel Morris, the club’s owner, has been attempting to sell the club since June 2019, but two potential deals have already fallen through.
Derventio Holdings, sponsored by the Bin Zayed Group in Abu Dhabi, saw their acquisition offer fall through in March, while another from Spanish billionaire Erik Alonso was canceled in May.
The Rams have been under a transfer embargo since before the summer market began, which meant Rooney could only recruit free players who met certain salary requirements.
On the pitch, the Rams have won one and drawn four of their seven league matches this season, putting them two points above the relegation zone.
On Saturday, they play Stoke City at Pride Park in the Championship.
Analysis
Ed Dawes is a Derby County pundit on Radio Derby.
Fans will believe Derby County has spent a lot in the past decade based on that remark.
They’ve signed some players who may have been overpriced, paid some large salaries, and sold others for less than they were signed for. But this is the last chapter in what has been at least six years of dubious business and football club administration.
Big Derby supporters have gone through this before, under the ownership of Robert Maxwell in 1983, but they have never seen the club go into administration.
For the club and its fans, this is a very sad day.
Simon Stone is a sports journalist.
This is the moment that Mel Morris, the owner, had hoped to avoid.
Morris has been meeting with potential new owners and negotiating with the EFL in an attempt to guide Derby out of their financial quagmire.
Slowly, though, all options have been exhausted.
The response of MSD, Derby’s main lender, to this revelation will be fascinating to watch. Also, now that the transfer window has closed, where will Derby get the money to keep going?
If that wasn’t terrible enough, there’s also the possibility of a nine-point penalty for past financial problems the EFL is looking into, on top of the 12 points that going into administration would entail.
Manager Wayne Rooney has fought through it all, but League One now seems to be a foregone conclusion.
Kieran Maguire is a football financial specialist.
The most important thing is that no matter what happens, there is still a Derby County to cheer for.
It isn’t the end, but it will be a very difficult phase. You should strive to keep the football club distinct from its owners and management.
From afar, they seem to have completely failed everyone else. Since Mel Morris took charge, salaries have virtually trebled from £16 million in 2014 to £47 million in 2018.
Derby County, a football club based in England, has filed notice to appoint administrators. The club is currently fighting relegation from the English Championship. Reference: derby county manager.
Related Tags
- derby county fixtures
- derby county table
- derby county players
- derby county points deduction
- derby county bbc table
