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Derby - Administration on the cards


Silvio Dante

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26 minutes ago, Bobbie said:

Never liked Derby but wouldn’t wish administration on any club’s fans. I wonder what sort of salary Rooney is on?? 

£100k per week isn’t?

IIRC the idea was that Derby’s shirt sponsor increased their sponsorship deal by an amount sufficient to cover WR’s salary. As they can’t pay this directly to the player/coach ( 3rd party ownership and  FFP)  it has to go into Derby’s coffers, where it is swallowed up covering all the other overheads and the rest of the squad. 

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33 minutes ago, Bobbie said:

Never liked Derby but wouldn’t wish administration on any club’s fans. I wonder what sort of salary Rooney is on?? 

And therein lies part of the problem. I say part because of the sponsorship deals etc, but is it really that much of a surprise with that owner.

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7 minutes ago, Bassomylord said:

Won't happen because its Derby County. Too bigger club.

Deluded ownership and deluded fans, have no sympathy for them.

I don’t see Derby that big of a club to be honest. They’ve never travelled well down here either!

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16 minutes ago, Bassomylord said:

Won't happen because its Derby County. Too bigger club.

Deluded ownership and deluded fans, have no sympathy for them.

It might not happen, and if it does then sadly they are likely to be one of many clubs to go into administration.

However, if it does it will be karma for the jiggery pokery and financial shenanigans they got up to over the “sale” of Pride Park in order to wiggle around ffp and escape serious punishment.

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11 minutes ago, downendcity said:

It might not happen, and if it does then sadly they are likely to be one of many clubs to go into administration.

However, if it does it will be karma for the jiggery pokery and financial shenanigans they got up to over the “sale” of Pride Park in order to wiggle around ffp and escape serious punishment.

That is the weird thing. They are so badly run that even with the ground con they may still go into Administration.

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27 minutes ago, downendcity said:

£100k per week isn’t?

IIRC the idea was that Derby’s shirt sponsor increased their sponsorship deal by an amount sufficient to cover WR’s salary. As they can’t pay this directly to the player/coach ( 3rd party ownership and  FFP)  it has to go into Derby’s coffers, where it is swallowed up covering all the other overheads and the rest of the squad. 

As I recall, £100k per week sounds right- however the sponsor 32Red were covering all but £20k of it.

It could have been £80k-£20k weekly, would have to doublecheck but it's big money either way! 18 month deal, above a number of PL clubs shirt sponsorship deals- to say nothing of all the other clubs sponsored by 32Red!

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19 minutes ago, petehinton said:

They’ll be in big big trouble if they get a points deduction. Think they’re still top 5/6 for wages in the league. 

Admin constitutes an automatic 12 point deduction.

That would surely lead to certain relegation. Who knows if there would be further punishment for non-payment or late payment of wages- could we see a firesale of their better players too?

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Their fans definitely wouldn't agree with me, but they would surely be best off taking the 12 point hit, and looking to rebuild- a long hard road yes, but to rebuild in League One. Strong academy, keep some and sell some- sound footing, new prudent owner and they would work their way back I expect.

Also an interesting post- when Mel Morris took over he inherited an excellent scenario! On their forum.

Quote

If you want to defend Mel then that's fine, but in 2014 we were a club on the verge of promotion with financial stability. It now appears we cannot afford to pay players wages at all. His heart might have been in the right place but he's got it wrong. Horribly wrong. 

Both him and Chansiri at Sheffield Wednesday took over clubs in an excellent and a stable position respectively.

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I think that the big question is why would anyone buy Derby County at this time?

No guarantee of Championship football next year.

No final resolution of FFP issues with EFL, no resolution of Dell investment in two clubs, vast cash investment to pay wages .... potentail further EFL action in respect of non-payment of wages ...

A buyout from administration will also need to deal with the assets charged to the secured lenders, the 'crook fron Switzerland' and Dell. 

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Happy to correct myself slightly on Rooney.

His wages will be accounted for as part of the total wage bill in the accounts. Whether it was £80k in total per week with £60k per week out of sponsorship or £100k per week with £80k per week out of sponsorship I can't recall.

How it would be accounted for I expect, is appearing in the wages with a big bump in the Commercial revenue.

Unclear if that commercial revenue bump would expire when Rooney's contract does or if it would it outlive it.

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24 minutes ago, Lrrr said:

Have a word with Brighton and say we'll actually pay Clarke's wages if Brighton were to recall him and send him to us on loan. Then make a cheeky bid for him in the summer... sorted :laugh:

Clarke would be nice!

Tbh despite their position a few players there who certainly I wouldn't mind seeing in a City shirt.

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18 minutes ago, Northern Red said:

Other than the stuff with the ground sale I've not really been following this.

What's the crack? Morris running out of money or just not willing to put any more in? Or does FFP mean he can't?

The former I think.

I assume he is funding them up to and including FFP limits. General funding there's no limit on, but that would basically be Balance Sheet or Cash Flow. Owner loans that sort of thing.

Again he can put in as much equity as he likes but beyond the limits, the rest doesn't count towards FFP.

Might also add, a couple of interesting theories on Derby forum (or couple of straws being clutched).

1) This is brinkmanship by Morris to force the new would be owners to get it through and now.

2) Michael Dell will inherit the club and all its assets given the loans secured against these. Whether he has any ambitions in this respect who the hell knows! Given he has loaned many clubs cash through MSD, I'd be surprised.

Also theories that it could be a secondary attempt to pressure Dell to agree if his loans are a stumbling block.

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5 minutes ago, Mr Popodopolous said:

Clarke would be nice!

Tbh despite their position a few players there who certainly I wouldn't mind seeing in a City shirt.

No doubt but I expect most we'd be looking at so would others, but think Clarke will soon be on the verge of thinking if he's not going to be getting in Brighton's team with the emergence of White he may look to settle elsewhere ala Kalas

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Nixon. Apologies for the source.

https://www.thesun.co.uk/sport/13737376/derby-knight-sibley-pay-wages-wayne-rooney-administration/amp/?utm_medium=Social&utm_campaign=sunfootballtwitter&utm_source=Twitter

Might have to sell players such as Knight and Sibley in order to pay wages.

It mentions administration or what I said about MSD gaining the club being possible.

Says 14 day notice for players being able to leave due to unpaid wages can soon be invoked.

Mentions EFL and possible punishment in the form of points deductions if that happens.

Also says in the article:

"County are set to speak to the EFL about their issues in an attempt to avoid punishment."

Give no quarter, says I.

I see no justification here! What do we think @chinapig@Davefevs @downendcity @Hxj

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