Derby face points loss

[griff]

Going into administration and blaming covid, though as the BBC point out, there’s more to it than that:

“Championship side Derby County are set to go into administration amid their continued financial problems.

The club, which is up for sale, said despite negotiations with a number of "credible parties", identifying a buyer was unlikely in the short term.

The English Football League confirmed they would face a 12-point deduction.

In a statement the Rams said Covid-19 had a "severe impact" on revenues and they "had no choice" but to appoint administrators to protect the club.

It claims the pandemic has cost them around £20m in lost revenue and left them "unable to service its day-to-day financial obligations".

"We cannot stress enough how devastating it is to be forced into this position," the board's statement said.

"This season, Covid-19 has continued to have a negative effect on revenues.

"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."

Derby, managed by former England captain Wayne Rooney, are 16th in the table with seven points from their first seven matches.

A 12-point deduction would leave them with minus-five points and 10 points from safety.

Rams already facing points loss

Their accounts for 2016, 2017 and 2018 are already being re-examined after they were found to have broken accounting rules and they could face more points deductions for that.

The Rams were fined £100,000 and reprimanded in July by the English Football League for that breach.

Derby owner Mel Morris has been trying to sell the club since June 2019, but has already had two prospective sales fall through.

In March Derventio Holdings, who were backed by the Abu Dhabi-based Bin Zayed Group, saw their takeover bid end while another from Spanish businessman Erik Alonso was called off in May.

The Rams have been under a transfer embargo since before the summer window opened, meaning Rooney was only allowed to sign free agents with strict conditions on salaries.

On the field, the Rams have won just one of their seven league matches this season and drawn four, leaving them two points above the relegation zone.”

[Acido]

They deserve it Griff, if its Admin these days it means at least a -12 point deduction, and I can't feel sorry for them.

[Piglet_Phoenix]

No sympathy from me.

Any club which takes the administration option should be expelled from the league with immediate effect and required to join the bottom tier of the pyramid.

[griff]

Agreed, they’ve been financial basket-cases for a while now though. I’m not against points deductions but 12 isn’t enough. I gave a thought to deductions of 20 to 100 points based on a debt v turnover sliding scale with any points “unused” being carried forward to the next season. Probably unworkable though.

Situation like at Derby bring the game into disrepute, and there are countless examples (Leicester) of Clubs getting completely out of debt, shafting local businesses, then paying silly money for new players a few weeks later. If you try to buy success and it fails you should pay the consequences.