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

[Gringo]

7 minutes ago, RoyMac5 said:

How so? If he has a stadium he can't use it for anything but football.

But someone buying Derby County Football club will need a stadium to play at, so Mel could easily play hardball.

[RoyMac5]

7 minutes ago, Charlotte Ram said:

But someone buying Derby County Football club will need a stadium to play at, so Mel could easily play hardball.

That would go down well with the fans! ? We could ground share.

[RadioactiveWaste]

Just now, RoyMac5 said:

That would go down well with the fans! ? We could ground share.

Meadow Lane!

[Icomeinpeace]

Purely speculation but MSD are the wild card in all this - what if they call in the loan? You'd think given his MO that Mel banked on and made assurance to MSD about the riches that would come with promotion with the ground then being used as collateral...  what if they think they can make more money selling or developing the site and therefore call it in, would Mel cover it? 

Edited September 19, 2021 by Icomeinpeace
spelling

[Rev]

50 minutes ago, RadioactiveWaste said:

Meadow Lane!

We paid for it after all!

[Rev]

4 minutes ago, Icomeinpeace said:

Purely speculation but MSD are the wild card in all this - what if they call in the loan? You'd think given his MO that Mel banked on and made assurance to MSD about the riches that would come with promotion with the ground then being used as collateral...  what if they think they can make more money selling or developing the site and therefore call it in, would Mel cover it? 

It's hard to see how the stadium would be worth more than the land it's sat on, and there's plenty of that in the immediate area already being prepared for development.

It's not a prime riverside spot, for instance, which is already being developed for housing all around, like the City Ground for instance.

[sage]

We have now got to hope that either a) a new buyer is found in the 2 weeks before we go into formal administration or at least b) a new buyer is in place before the January window, so it doesn't turn into a fire sale,  

[Spanish]

57 minutes ago, sage said:

We have now got to hope that either a) a new buyer is found in the 2 weeks before we go into formal administration or at least b) a new buyer is in place before the January window, so it doesn't turn into a fire sale,  

he is gambling that admin will force buyers to make a real bid rather than hang on to see how things go.  Mel is not a good gambler

[kevinhectoring]

20 hours ago, Stive Pesley said:

 

If that's true, and these debts are not wiped out by going into administration (as is apparently the case) - then why the hell would ANYONE buy the club?

 

Because before you sell you say to hmrc: you’re not a football creditor, settle for 10m because if you don’t we liquidate and you get nothing 

don’t think Cocu is a football creditor either 

[Carl Sagan]

1 hour ago, sage said:

We have now got to hope that either a) a new buyer is found in the 2 weeks before we go into formal administration or at least b) a new buyer is in place before the January window, so it doesn't turn into a fire sale,  

Also for (b), given administrators can't sell for the first 28 days anyway, they've effectively got to be able to find funds to pay at least two months worth of wages. And the wage bill is the biggest cost to the club by far. If incomings aren't sufficient and there's nothing for the administrators to liquidate, do players become free agents? And does the suspended 3 point penalty (for previously not paying wages on time) automatically get activated?

And does paying "football debts" in full mean we can no longer pay ongoing transfer fees (eg Bielik, Jozwiak) in instalments but have to pay the full whack? 

I don't know the answer to any of these questions, but wonder if others might.

[SSD]

Mel Morris...

 

[Spanish]

8 minutes ago, Carl Sagan said:

Also for (b), given administrators can't sell for the first 28 days anyway, they've effectively got to be able to find funds to pay at least two months worth of wages. And the wage bill is the biggest cost to the club by far. If incomings aren't sufficient and there's nothing for the administrators to liquidate, do players become free agents? And does the suspended 3 point penalty (for previously not paying wages on time) automatically get activated?

And does paying "football debts" in full mean we can no longer pay ongoing transfer fees (eg Bielik, Jozwiak) in instalments but have to pay the full whack? 

I don't know the answer to any of these questions, but wonder if others might.

I fear there is nothing in the rules for this and the EFL will be forced to enforce the penalty.  If admin does not protect us form EFL rules I don't think they will have a choice

[kevinhectoring]

7 minutes ago, Carl Sagan said:

Also for (b), given administrators can't sell for the first 28 days anyway, they've effectively got to be able to find funds to pay at least two months worth of wages. And the wage bill is the biggest cost to the club by far. If incomings aren't sufficient and there's nothing for the administrators to liquidate, do players become free agents? And does the suspended 3 point penalty (for previously not paying wages on time) automatically get activated?

And does paying "football debts" in full mean we can no longer pay ongoing transfer fees (eg Bielik, Jozwiak) in instalments but have to pay the full whack? 

MSD might lend more to fund salaries. Also I think the administrator can borrow to fund company costs if it makes sense to do that, and if he does the lender gets a prior claim

if players contracts are not adopted, yes I’d think those players will become free agents. They are free of contract 

I don’t think the suspended 3 point penalty would apply where contracts are not adopted, so long as salaries are paid to termination. But not at all sure 

I’d guess the requirement to pay football debts in full applies to football debts as they fall due. In other words, you could still pay in instalments so long as you keep them current.  

[Yani P]

I think that they would want to keep it funded as a going concern, especially if there are 2 or 3 reputable purchasers waiting in the wings as we speak..

[Flying Fokker]

On 18/09/2021 at 14:57, ariotofmyown said:

I'm really struggling to understand why we are going into admin.

We gambled too much on promotion and tried to find loopholes to escape the FFP rules. Whilst it was a stupid thing to do, it made some sort of sense. If/when it failed, it means points deductions and probable relegation. But it's not because the club ran out of money, it's because we spent more money than we were allowed.

How have we suddenly reached the point now where we don't have enough money for the club to continue functioning? Has Mel literally got no money left to keep the club going? If not, why has he now decided to stop funding the mess he created. Can't he just carry on paying the money until Jan, sell any high earners, sell the whole first team, and have a cheap team of kids? Or are most of the outgoings now just servicing debt with no end in sight? Just hope there is something else going on and this is necessary to push it through.

The likes of Arsenal, Liverpool, Man U, Villa, Spurs, Everton, and others trade with big debt but can cover it somehow. I think it takes one blip and the house of cards falls.  There may be a few more clubs in the EFL to follow County.  Sheffield United next? 

[JuanFloEvraTheCocu'sNesta]

3 hours ago, RoyMac5 said:

How so? If he has a stadium he can't use it for anything but football.

That's not what the club said when valuing it.

Mel's phone must be ringing off the hook with internationally famous musicians ready to play at Pride Park when there is none of that pesky football to cater for.

[HorsforthRam]

 

[GenBr]

 

[Elwood P Dowd]

5 hours ago, Charlotte Ram said:

But someone buying Derby County Football club will need a stadium to play at, so Mel could easily play hardball.

Doesnt this cut both ways, Mel needs Derby County Football Club to play at the Stadium so they pay him the rent\lease and he can then service his loan from MSD. I belive the MSD loan is secured on the ground and Mel owns the ground.

The risk for Mel is, what happens if the Adminstrators decide they cannot pay the ground rent\lease and look to ground share (I hope this never happens)

Pride Park is a great stadium but is only realy any good for playing football in.

As far as the ground is concerned I think Mel needs Derby County Football Club and Derby County Football Club needs the Mel.

 

Edited September 19, 2021 by Elwood P Dowd

[Sparkle]

3 hours ago, Spanish said:

I fear there is nothing in the rules for this and the EFL will be forced to enforce the penalty.  If admin does not protect us form EFL rules I don't think they will have a choice

The EFL have had a choice in every decision they have made.