Derby County Administration (with the slight possibility of Liquidation still there)

[DCFC Kicks]

7 minutes ago, Rambalin said:

Admin have been on talk sport said there had been six credible offers and last night a seventh from America with over $1 billion dollars in it's funding also lots of clowns on e mail making offers.

Also said they will ask for proof of £5 million in a Uk bank account non refundable before allowing anyone to proceed to negotiate and they hope to get a deal over the line in the next 90 days.

Also four local business had offered to loan funds to keep the club ticking over.

?

I bet he has a lot of money though...

[Ghost of Clough]

10 minutes ago, CornwallRam said:

The problem with the GSE ownership is that it was unsustainable. With Glick in post they were trying to reduce wage costs to break even and we finished in the bottom half every season. Crowds were falling and there was no growth achieved in revenues. They were never able to break even and had to constantly put extra cash in.

When Rush came in he convinced them to loosen the purse strings a little. Nigel was able to bring in better players, which eventually led to the McLaren play off team. The losses were increasing even at this point though and most of GSE's investors wanted out.

I would hope that Appleby would return a little older and wiser. With the economics of the Championship, the only route to sustainability is promotion. OK, it might be a few years before it's an issue for us, but I do wonder if the best plan might be doing it in cycles? Two years of high spending to try to achieve promotion, followed by two years of cost cutting to create P&S headroom, for the next cycle. 

With P&S it would be easier to stick to a 3 year cycle - low spend, medium spend, high spend, then start again.

Either that or get recruitment right so that high value sales are a regular occurrence which funds a continual push

[Tamworthram]

11 minutes ago, Rambalin said:

Admin have been on talk sport said there had been six credible offers and last night a seventh from America with over $1 billion dollars in it's funding also lots of clowns on e mail making offers.

Also said they will ask for proof of £5 million in a Uk bank account non refundable before allowing anyone to proceed to negotiate and they hope to get a deal over the line in the next 90 days.

Also four local business had offered to loan funds to keep the club ticking over.

Heck, £5m non refundable? If we could get a couple of those on board (and then drop out) that could be handy. ? Come on Alonso, show us your money.

Excellent news about the local business. 

[Rambalin]

Also said a extra 5k in the ground for two home games a month makes the club £100k towards running costs. 

[RoyMac5]

28 minutes ago, Rambalin said:

Admin have been on talk sport said there had been six credible offers and last night a seventh from America with over $1 billion dollars in it's funding also lots of clowns on e mail making offers.

Also said they will ask for proof of £5 million in a Uk bank account non refundable before allowing anyone to proceed to negotiate and they hope to get a deal over the line in the next 90 days.

Also four local business had offered to loan funds to keep the club ticking over.

duck I better get my email back then! ?

[RadioactiveWaste]

A $5m non refundable deposit. Seems a bit steep just to get a look at the books....

I get they want to deter time wasters but I would presume at that price it's effectively "held" until the club is sold. After all, Six bidders put in $5m each, runs the club til the end of the season....

[Rambalin]

1 minute ago, RadioactiveWaste said:

A $5m non refundable deposit. Seems a bit steep just to get a look at the books....

I get they want to deter time wasters but I would presume at that price it's effectively "held" until the club is sold. After all, Six bidders put in $5m each, runs the club til the end of the season....

I believe he said and I failed to put it in the original post they get it back if they are not chosen has the preferential bidder. 

Should cut out the time wasters also Simon Jordan said these are good administrators he dealt with them when Mk Dons were set up. 

 

[TooFarInToTurnRed]

2 hours ago, StarterForTen said:

All EFL clubs that go through an insolvency event are required to work to a League-approved business plan for two years as a condition of the transfer/retention of their membership share (the so called 'Golden Share'). This inevitably will mean a restriction in the transfer market compared to others, but perhaps not an embargo as such.

And in any case I doubt that the club's rolling P+S limit will be reset, so new owners will be working to restricted head room for permitted losses in the short term.

And... if the Club is in League One next season, the financial controls are different in that division. The £2.5m salary cap proposal was thrown out last year, but I think current rules state that in L1, the salary cost management protocol limits player related expenditure to 60% to turnover. For Derby, that would likely be circa £10-12m per year.

When debts the club owe are written off can they not be counted toward profit for P&S purposes? If not then Forest need to be investigated as they did just that in their latest account! They have written off a £5m “historical” loan they had claiming it as profit. 

[CBRammette]

51 minutes ago, Rambalin said:

Admin have been on talk sport said there had been six credible offers and last night a seventh from America with over $1 billion dollars in it's funding also lots of clowns on e mail making offers.

Also said they will ask for proof of £5 million in a Uk bank account non refundable before allowing anyone to proceed to negotiate and they hope to get a deal over the line in the next 90 days.

Also four local business had offered to loan funds to keep the club ticking over.

I had hoped people with money who couldnt buy may help short term. This is brilliant news

[atherstoneram]

1 hour ago, Gaspode said:

Are you on such an anti-Morris roll that your blinkers stop you seeing the bigger picture?

I'm not blaming the EFL - I'm stating that by not giving us the additional 'monet to save clubs from Covid' funding (while giving it to all of the other Championship clubs), we've been made into an exceptional case - and that provides a solid argument against the 12-point deduction for going into admin.

A lot of people on here have been saying we can't claim exceptional reasons to avoid the 12 point deduction as other clubs have been able to survive - but by denying us the funding (and there's a very good case to say they were right to do that due to the P&S issues we were having) and then also giving us a points deduction when that decision tipped us over the edge into administration, they've effectively penalised us twice (and that's ignoring the embargo shenanigans preventing us from extending contracts and therefore losing players on the cheap).

Whoever ultimately is to blame (and neither Mel or the EFL are blameless) the funding decision was a contrbutory factor in pushing us over the edge - that should at least lessen the points punishment if not negate it completely....

No i am not on anti Morris crusade. The Covid loan wasn't to save clubs from Covid it was to specifically help clubs meet PAYE liabilities and clubs that didn't meet the criteria wouldn't be able to receive the loan.We appeared to owe HMRC before Covid appeared on the scene so why should the EFL help to clear debt that had already been accrued,that's how other clubs would have looked at it.Other clubs ensured PAYE had been up to date with liabilities to HMRC otherwise they wouldn't have got it.

I am not saying it is right or wrong 

[Turnstile]

5 hours ago, CornwallRam said:

The Rush thing is strange. None of us know quite what happened and I doubt he was squeaky clean, but there are several questions which need answering before we can fully condemn him:

Why did Mel have to settle out of court and pay him compensation if he was such a villain?

If his dealings were so bad, why was this not noticed by the Chairman or the CFO?

Why did the wage bill rise significantly after he left?

If he is such a crook, why is Andy Appleby so keen to work with him again?

Personally, I have no idea either way, but I'm not sure we can condemn him purely on the words of Mel Morris.

 

Probably Morris decided to keep him (rush)quiet. I thought Appleby said he was prepared to help dcfc short term ,but that he would not be interested in Getting too involved ie owning.

[Bwash_Ram]

50 minutes ago, DCFC Kicks said:

?

I bet he has a lot of money though...

Return of the Mac?

[Eddie]

Blimey, 100 pages. 

Does this mean that George Thorne's our new owner?

[May Contain Nuts]

2 hours ago, CornwallRam said:

The problem with the GSE ownership is that it was unsustainable. With Glick in post they were trying to reduce wage costs to break even and we finished in the bottom half every season. Crowds were falling and there was no growth achieved in revenues. They were never able to break even and had to constantly put extra cash in.

When Rush came in he convinced them to loosen the purse strings a little. Nigel was able to bring in better players, which eventually led to the McLaren play off team. The losses were increasing even at this point though and most of GSE's investors wanted out.

I would hope that Appleby would return a little older and wiser. With the economics of the Championship, the only route to sustainability is promotion. OK, it might be a few years before it's an issue for us, but I do wonder if the best plan might be doing it in cycles? Two years of high spending to try to achieve promotion, followed by two years of cost cutting to create P&S headroom, for the next cycle. 

Also nobody really ever talks about why we had to cut costs under Clough in the first place.

They took over a PL team, yes a really crap one with no chance of staying up, but it wasn't one with ridiculous wages and we had parachute money to come.  

They allowed Adam Pearson to blow the lot on a frivolous attempt to back Paul Jewell, first in keeping us and then bouncing back at the first attempt.

The 'sensible business plan' only came about as a matter of needs must when this failed.

That's the key difference with MM really, he didn't know when to stop and so just piled up more and more debt up to the point where his attempts to cust costs were far too late, whereas once Pearson moved on (after appointing Clough) GSE immediately stuck their business heads on and rectified the mess they'd funded.

Edited September 24, 2021 by Coconut's Beard

[England Ram]

2 hours ago, Rambalin said:

Admin have been on talk sport said there had been six credible offers and last night a seventh from America with over $1 billion dollars in it's funding also lots of clowns on e mail making offers.

Also said they will ask for proof of £5 million in a Uk bank account non refundable before allowing anyone to proceed to negotiate and they hope to get a deal over the line in the next 90 days.

Also four local business had offered to loan funds to keep the club ticking over.

How refreshing is it to have people at the helm who are both honest and forthright in their approach. 
That small piece of news actually gives me even more hope after yesterday. 

Asking for a £5 million deposit in a UK bank is genius to be fair. If you’re serious about wanting this club and having the finances to secure our future then £5 mill should be easy money to you. 
If not…jog on!!! 

[Yani P]

Agree..makes sense and hopefully gets the whole sorry mess sorted out a lot faster..

[HorsforthRam]

17 minutes ago, England Ram said:

How refreshing is it to have people at the helm who are both honest and forthright in their approach. 
That small piece of news actually gives me even more hope after yesterday. 

Asking for a £5 million deposit in a UK bank is genius to be fair. If you’re serious about wanting this club and having the finances to secure our future then £5 mill should be easy money to you. 
If not…jog on!!! 

I bet they want £5 million deposit. Guarantees their cut ?

[Ambitious]

Trevor Birch confirmed their plan is to remove parachute payments, pool the TV revenue with the Premier League in which the EFL get a 25% share. 

I say good luck getting the Premier League agreeing to such a thing. 

[Ghost of Clough]

7 minutes ago, HorsforthRam said:

I bet they want £5 million deposit. Guarantees their cut ?

The important bit is that it guarantees us getting through to January if Mel's £1.5m a month comment is to be believed

[Carnero]

8 minutes ago, Ambitious said:

Trevor Birch confirmed their plan is to remove parachute payments, pool the TV revenue with the Premier League in which the EFL get a 25% share. 

I say good luck getting the Premier League agreeing to such a thing. 

The only bargaining chip the EFL has, that they wouldn't have the bottle to threaten the PL with, is to turn off promotion & relegation from EFL to PL & PL to EFL.

Doing this would make 90% of PL games effectively dead rubbers, ruining the PL entertainment and lowering their broadcasting revenue.

The PL would soon come back with a fairer deal for all.

Edited September 24, 2021 by Carnero