New Buyer Progress

[ramAnag]

..... in the absence of somebody, anybody, stumping up £7M we have just one source of the money and that's selling players and, if then reports are true, losing JK might produce the necessary funds.

Given a choice between being thrown out of the League and selling JK, I know which route I'd take.

There are other routes but they are unlikely, such as one of the bidders putting the cash up front or a consortium of rich Rams fans putting up the cash like Niall Horan, the Hollywood actor whose name I can't remember and others, none of which look likely.

I had a pretty restless night last night and came up with an idea that is even less likely and it requires not necessarily support from a lot of people but it does require some unlikely people not to stand in the way. It also requires input from Mel Morris.... possibly the biggest stumbling block to the idea.

Mel immediately writes off what we currently "owe" him. Mel puts up the £7M immediately as an interest free loan. He pays off all creditors as an interest free loan. He pays MSD the £20M and regains full ownership of the stadium. Once the £7M is deposited we have proof of funds to complete the season. Mel then sells the club to the preferred bidder for £1. He also sells the ground to DCFC for £20M and that sum is added to the interest free loan. The preferred bidder then puts the agreed funds into DCFC, let's say £50M. Out of that pot, the sole creditor (Mel) gets 25% of the debt up front. After that, he, or his beneficiaries should he die, get £2M at the start of each season as part repayment. They also get 25% of any profit made in a financial year. This continues until the full debt has been repaid. Derby is solvent and has £37.5M in the bank to cover running costs.

While all this has been going on, MFC and WWFC have agreed to temporarily park their claims while the EFL investigates if their claims are within EFL rules. If the claims are against the rules they are declared null and void. If not, we go through the Arbitration process and accept the result.

The EFL will immediately withdraw the "golden ticket" sword of Damocles from over the club's head. They will investigate the adherence of the claims to EFL rules and remove all extra sanctions from the table.

Derby County adopts a new financial policy. One where the intention is not to make a loss, under normal circumstances. Small losses are always a possibility. Every year, the club publishes the budget, a realistic one, showing expected income, expected outgoings etc. Included in that budget will be realistic plans for removing any trading losses over a period of 3 years. Extraordinary losses caused by something like a pandemic could be made up over a longer period of 5 or 10 years depending on the size of the deficit. It works in Holland.

The EFL introduces new rules to adopt the DCFC financial policy for all clubs. Failure to produce a balanced and believable budget could lead to a points deduction and repeated offences could lead to withdrawal of the "golden ticket".

The PFA was successful in getting wage reductions following relegation removed from contracts. That puts a strain on the budgets of relegate clubs. They should also accept the removal of wage rises from contracts in the case of promotion or return to accepting relegation reductions.

I realise that this "plan" is wholly dependent on Mel stepping up to the plate to save DCFC from dying as a result of financial mismanagement on his watch. Will the "lifelong, loyal supporter" step up? I hope so but won't be holding my breath.

The plan means nobody loses more than they already know they are going to lose and that is just Mel who has already agreed to write off the rumoured £140M we "owe" him. Mel puts up an estimated 10% of his wealth to save the club and he and his family get the money back over a number of years. The numbers aren't set in stone and can be increased or reduced to make the repayment period shorter/longer.

At least it's a plan of sorts rather than just moaning and finger pointing.

Lots of good, original and constructive ideas there MA, from someone who genuinely cares.

I see that Mel Morris, who remains crucial to your ‘plan’, is reported as having installed 24 hour security at his Derbyshire home and ‘left the area’.

I don’t applaud the need for him to take such steps but suspect that it was probably inevitable given how feelings have changed so rapidly and spectacularly towards him and the depth of feeling this whole business has brought about.

Mel Morris has gone from hero to villain in the last few months...understandably so...but one does have to wonder how amenable he will feel towards such plans as yours given the current level of something approaching real hatred towards him.
Could go either way.

[Ramshank72]

Just taking me Ram specs off for a moment, I can see the technical merit in Wycombe's claim, and if I was the buyer, I would look to settle that claim. Listening to the Wycombe boss on the interview last night, it's the standard "poor little us" cry that doesn't wash, but, it does seem that there is a case and I think it would be better to settle that one and move on.
Ram specs back on, "suck it up, buttercup" is how I feel about it. It only would've taken a couple of victories in that last 10 or so games of abject failure, to avoid this situation n the 1st place. But that's, "ifs, buts and maybes".
The Boro claim however, that's not based on any substantial technicality other than Boro feeling hard done by. There's no proof that the money we spent is directly or indirectly responsible for Boro's failure to reach a playoff position. We could've spent less money, and finished better or worse, we could've spent more money, and finished better or worse. This is where the EFL should step in and say that they have dealt with the matter, pressurise Boro to drop their ridiculous witch hunt, and support the member in genuine hardship.

[ramAnag]

Just taking me Ram specs off for a moment, I can see the technical merit in Wycombe's claim, and if I was the buyer, I would look to settle that claim. Listening to the Wycombe boss on the interview last night, it's the standard "poor little us" cry that doesn't wash, but, it does seem that there is a case and I think it would be better to settle that one and move on.
Ram specs back on, "suck it up, buttercup" is how I feel about it. It only would've taken a couple of victories in that last 10 or so games of abject failure, to avoid this situation n the 1st place. But that's, "ifs, buts and maybes".
The Boro claim however, that's not based on any substantial technicality other than Boro feeling hard done by. There's no proof that the money we spent is directly or indirectly responsible for Boro's failure to reach a playoff position. We could've spent less money, and finished better or worse, we could've spent more money, and finished better or worse. This is where the EFL should step in and say that they have dealt with the matter, pressurise Boro to drop their ridiculous witch hunt, and support the member in genuine hardship.

Very even handed, Ramshank...and I can see the point of settling the relatively small Wycombe claim...but ‘Ram specs’ or not I don’t honestly accept their case against us.
We stayed up at their expense as a result of on pitch matters in the very final moments of last season and the decision made by the EFL last season.
Those final few moments would have been hard to take...as we know, from 2014, better than most...but that’s football. Beyond that their argument/case is surely with/against the EFL...not us.

As regards the Boro’ claim...I agree, it is, imo, both spurious and malicious and will, I think, be dropped shortly after the closure of this ‘window’ by which time the damage, both short and longer term, will have been done....unless!

[MadAmster]

Firstly, thanks to the couple of posters who took the time to post constructive replies, much appreciated.

Sibs? Rowett has had his measly bid knocked back again. He is now said to be looking elsewhere. I don't know how much say Rooney has in possible outgoings in the current situation but he did say recently that Sibs is part his future plans and is going nowhere.

On the 2 claims...

Wycombe dropped points to Sheff Wednesday last season who were docked points for breaching FFP rules, so why not make a claim against them? They also dropped points v Reading who have now been deducted points for breaching FFP as well - where's the case against them? Why go after DCFC and not Reading FC?

Boro dropped points v Sheff Wed in the 2019/20 season so why not claim against them as well? Those points would have got Boro into the playoffs at derby’s expense.

How come just because we stayed up / sneaked a play off place, are we getting sued when 2 other clubs who also exceeded FFP limits and took points off Wycombe & Boro aren't also getting sued?

Vendetta v Derby.....? One could be excused for thinking just that.

[Ramshank72]

Vendetta v Derby.....? One could be excused for thinking just that.

Indeed!
The Wycombe claim rather than being about spending, seems to be based on our revised accounts not being posted until it was too late (after agreed deadlines), meaning that our points deduction couldn't take place until this season. They allege that this was a deliberate tactic on our behalf to ensure our survival, and therefore cost them survival.
In respect of selling players, I'm agreed, don't want to but ultimately we need a club to support, we have little choice and selling high value players is preferable to winding up. As far as squad capability is concerned, I think we need to ensure that we are capable of avoiding a 2 division drop, rather than gambling on pulling it off this year.

[Geoff Parkstone]

Because when the predators see a weakened and sick wildebeest trying to cross the Serengeti, that's the one they pick off ....

[Geoff Parkstone]

Indeed!
The Wycombe claim rather than being about spending, seems to be based on our revised accounts not being posted until it was too late (after agreed deadlines), meaning that our points deduction couldn't take place until this season. They allege that this was a deliberate tactic on our behalf to ensure our survival, and therefore cost them survival.

and here, I fear, they may have a point. It did seem to take an unconscionable amount of time to recalculate an amortisation charge which ought to have taken no more than a day, unless there were complications that I cannot comprehend. It then would presumably need to be signed off by the auditors and the P&S statements resubmitted. Wouldn't even need to change the accounts as filed at companies house (had they been filed at the time) since the amortisation policy was in accordance with GAAP. But proving that point, and demonstrating it was deliberate, is a whole different matter

[Andy_Faber]

Because when the predators see a weakened and sick wildebeest trying to cross the Serengeti, that's the one they pick off ....

As the good Lord said, never kick a man unless he’s down

[MadAmster]

Radio Derby News saying Toby Perkins, MP for Chesterfield, who will be interviewed by Sally on Radio Derby in the next hour, has said that MPs met Quantuma this afternoon. They were told that the claims by MFC/WWFC total as much, if not more, than the club is worth and settling would see the club in liquidation.

Looks like I'll be flying back for the Brum game which may well be our last ever game by the look of it....

[MadAmster]

What RD said on the News now confirmed by a series of Tweets from Perkins......

It does NOT look good.