Derby hit new low as club goes into administration

Derby County

September 20 – English championship club Derby County, twice crowned champions of English football back in the 1970s in the old first division, have filed for administration amid continued financial problems at the club.

Managed by former England and Manchester United striker Wayne Rooney, Derby said “a number of developments” led to the decision, including a failure to identify a buyer and the negative effect of the Covid-19 pandemic on revenue streams.

Owner Mel Morris, who has been at the club since 2015, has seen two potential deals fall through in recent months in his search for a takeover.

“Because the Covid-19 pandemic has had a severe impact on the revenues and profits of all of its businesses, the club has been unable to service its day-to-day financial obligations,” Derby said in a statement.

“The directors had no choice but to make the tough decision to take this action and protect the club.

“Unlike other sectors, football has been able to only marginally reduce its cost base with the majority of outgoings being associated with playing staff who obviously could not be furloughed.

“It is widely known that we had significantly reduced our wage bill, but the major benefit of these reductions were not going to take effect until this season.”

The English Football League (EFL) confirmed Derby would be docked 12 points, the standard penalty for a club entering administration, but disputed claims that Covid-19 was responsible for their financial decline.

“The EFL entered into a debt raise to provide its clubs with access to funds that would support them in dealing with the impact of COVID and, as with any loan, this was subject to a timeframe and eligibility criteria which Derby County was unable to meet,” the EFL said in a statement.

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