Derby announce they have gone into ADMINISTRATION and ‘could face a 21-POINT deduction’, as Wayne Rooney’s Championship side plunge further into crisis
- Derby County have gone into administration, the second tier side announced
- Various reports suggest that the Rams now face a huge 21-point deduction
- Rooney said a hefty penalty would make life for his side ‘a lot more difficult’
Derby’s turbulent season was plunged into further crisis on Friday when they announced they had gone into administration.
The Championship club, managed by former England captain Wayne Rooney, now face a deduction of 12 points under EFL rules for entering administration, and a further nine points for existing breaches of financial rules according to various reports.
A hefty penalty will send the Rams to the bottom of the second tier, while the EFL has the discretion to determine the appropriate punishment within their rules.
Derby have announced they are in administration, meaning they face a 12-point deduction
However the club could conceivably appeal citing extenuating circumstances, given their insistence that their plight has been a direct result of the unprecedented Covid climate.
When asked about a possible nine-point deduction on Friday, Rooney said any greater penalty would make life ‘a lot more difficult’.
Before this development, Rooney had reaffirmed his commitment to the club.
The club statement read: ‘This action was made necessary by a number of developments.
‘Last week, it became clear that the process which has been underway to identify a purchaser for the Club likely would not be productive over the near term.
The Championship club have been plunged into crisis having just survived the drop last season
‘As the COVID-19 pandemic and lockdown tightened their grip, the Club’s revenues and cash flow took a circa £20 million hit.
‘This season, COVID-19 has continued to have a negative effect on the Club’s revenues.
‘We know this situation will raise concerns among our supporters. The Club respectfully asks that supporters continue to show their support, especially to the players and employees who have all been outstanding during these difficult times.
‘We appeal to the EFL to now assist the Club and the Administrators in any way they can in the effort to find a purchaser.’
The EFL confirmed the prospect of the imminent points deduction, and contested the club’s claim that their financial woes had worsened due to the EFL’s decision to ‘preclude the club from drawing down circa £8.3 million of financial assistance’ in respect of settling PAYE liabilities.
A double-figure deduction would put the East Midlands club rock bottom of the Championship
The EFL said in a statement: ‘With confirmation from Derby County Football Club that they have filed a notice of intention to appoint administrators, the EFL can tonight confirm that the Club will be subject to an insolvency event under the terms of the EFL’s Regulations.
‘As a result, the club faces a 12-point deduction. Once the EFL has received formal notification of the application, the deduction will be applied.
‘The EFL will in due course engage in discussions with the relevant parties with the aim of achieving a successful outcome for the long-term future for the club.
‘The League is disappointed with the comments made by the club in respect of COVID lending facilities.
‘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 time-frame and eligibility criteria which Derby County was unable to meet.’