Derby County the Latest English Soccer Club to Enter Administration

EFL Championship club Derby County have formally entered administration. They have appointed Quantuma as administrators, with a remit to find a buyer for the beleaguered East Midlands club before the end of 2021. By entering administration, the Rams – managed by former Manchester United and England legend Wayne Rooney – have been docked 12 points in the EFL Championship table, dropping them to the foot of the table. The news is a dagger to the heart of Derby fans that recently watched their team defeat promotion contenders Stoke City at Pride Park, against the odds.

Derby’s failed owner, lifelong County fan and successful entrepreneur Mel Morris has revealed he invested over £200m into the club during his tenure. However, Morris no longer has the desire or funds to continue to invest at the necessary level to keep the club competitive at the top end of the Championship. Derby’s new administrators have warned that the Rams are unlikely to be the last team to suffer from chasing the Premier League dream, with the disparity in annual revenues between the top and second tier meaning this is likely to occur “time and time again”. As Dave Burgess rightly said, in the EFL, unlike the Premier League, " every pound saved is a pound earned".

Hope abounds that Derby will have a new owner by the end of this year

Despite the doom and gloom surrounding Derby’s administration and almost certain relegation into League One this season, Hosking and fellow Quantuma administrator Carl Jackson told the local press that “genuine, credible” buyers had already been in touch since the club hit rock bottom financially. Hosking said there is “a considerable degree of interest” in Derby County Football Club, with potential bidders attracted due to the likely discounted debts that will make them a more attractive deal than they were last month. Hosking also spoke of the “magnitude” of the club, which makes securing the right deal for Derby’s long-term future all the more important. Avoiding the club falling into the hands of an unwanted chancer lacking the wherewithal to put in solid, sustainable foundations for the Rams going forward is the number-one priority for the club’s administrators.

Although the Rams have already been hit with a 12-point deduction for entering administration, their season is about to get all the gloomier with a further 9-point deduction looming. This additional penalty will be imposed by the English Football League for a host of additional financial irregularities, with the league also set to introduce further sanctions such as an imposed business plan, providing a roadmap for the club’s administrators to follow to give Derby’s supporters a sustainable club for the future.

However, the administrators’ insistence that “serious and well-funded” parties have registered their interest in the club should give the local community hope that the club will avoid becoming the ‘next Bury’ and fold into oblivion. The administrators also confirmed that all players and staff will receive their salaries for September, which will be paid directly out of gate receipts and other revenue. Quantuma’s team are also locked in negotiations with lenders to obtain funding to provide assurances over salaries for a further three months.

Wayne Rooney: On a hiding to nothing in the Pride Park hotseat

On the pitch, Wayne Rooney looks like having an uphill struggle motivating his troops for the battle ahead, particularly if they are hit with an additional nine-point penalty which would leave the Rams on -11 points – 18 points adrift of safety. Rooney spoke of the “disrespectful” approach of Derby’s beleaguered owner Mel Morris, who hadn’t spoken to Rooney since early August and failed to keep him firmly in the picture. Many believe Rooney is not yet cut out for the rigours of football management, having retired from playing to focus on management in January. Nevertheless, if he somehow manages to keep this squad in the English second tier this season, he will have achieved a football miracle.