Derby County: Championship club file notice to appoint administrators

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Since June 2019, Mel Morris, owner of Derby County, has been looking for a buyer to buy the club.

Derby County, the Championship side, is set to go into administration due to their ongoing financial difficulties.

The club is for sale. It stated that despite having met with several "credible parties", it was difficult to identify a buyer in the near future.

The English Football League confirmed that they would be subject to a 12-point deduction.

The Rams stated that Covid-19 had a "severe effect" on revenue and they "had to" appoint administrators in order to safeguard the club.

The pandemic cost them approximately 20 million in lost revenue, and they are "unable to serve its daily financial obligations".

The board stated that "We cannot stress enough the devastation it is to be forced into such a position." External-link

"Covid-19 continues to have a negative impact on revenue this season.

"Unlike other industries, football was unable to reduce its costs base marginally. The majority of outgoings were associated with players who could not be furloughed.

Former England captain Wayne Rooney manages Derby. They are currently 16th in the table, with seven points from seven matches.

They would be left with minus-five and ten points respectively if they took a 12-point deduction.

Rams already face points loss

After they were found to be in violation of accounting rules, their accounts for 2016 and 2017 are being reexamined and could result in additional points deductions.

The Rams were penalized 100,000 and reprimanded by the English Football League in July for their breach.

Mel Morris, Derby's owner, has been trying sell the club since June 2019. However, he has already seen two potential sales fail.

Derventio Holdings was backed by Abu Dhabi-based Bin Zayed Group in March. In May, Erik Alonso, a Spanish businessman, called off their takeover bid.

Since before the opening of the summer window, Rams were under a transfer embargo. Rooney was not allowed to sign agents without strict salary conditions.

The Rams are currently two points ahead of the relegation zone on the field with only one win in seven league matches and four draws.

They will host Stoke City at Pride Park on Saturday in the Championship.


Ed Dawes – BBC Radio Derby's Derby County commentator

Derby County fans will see that statement and conclude that they have spent a lot of money in the past decade.

Some players have been signed at a high price, some have received large wages, and others have been sold at a lower price than they were originally signed for. This is the end of six years of poor management of the business.

Big Derby fans went through this in 1983, under the ownership of Robert Maxwell. However, they have not witnessed the club go into administration.

It is a sad day for supporters and the club.

Simon Stone, BBC Sport

This is what Mel Morris wanted to avoid.

Morris is currently negotiating with the EFL and talking to potential new owners to help steer Derby out of the difficult financial waters.

All avenues are being closed slowly, however.

It will be interesting for MSD to react to this news. What will Derby do with the remaining funds?

As if this weren't enough bad news, EFL is looking at another nine-point deduction for financial issues they have investigated, along with the 12 administrations.

Wayne Rooney, manager of the team, has fought against it all but League One seems inevitable.

Kieran Maguire, expert in football finance

It doesn't matter what happens, there are still Derby County supporters.

Although it is not the end of the story, it will be very difficult. It is necessary to separate the football club and its owners and executives.

They seem to have let everyone else down from afar. Since Mel Morris assumed control, wages have effectively tripled in 2014. They went from 16m to 47m in 2014 and then to 47m in 2018.