Administration is it the best option now

[Curtains]

1 minute ago, RoyMac5 said:

What would he know, he was a fan of Erics wasn't he?!

Mel said he'd pay the wages.

The accounts have to go in - if we went over P&S and into admin the EFL would probably do us twice!!!

Lets see where we are when the accounts are in.

That’s fair enough. 
 

I only said Mel should consider Administration.

 

[Eatonram]

Anyone who thinks administration is the answer I feel does not understand the full implications of this process. 

[Ghost of Clough]

Just now, Curtains said:

Maybe but Mel would be able to leave and we could have a fresh start. 
 

Right now Derby’s options are limited. 
 

A takeover though would negate the threat of administration 

But admin would mean flogging the squad to pay off all remaining debt, leaving the club with no 1st team players (sold at below fair value), and the best of our academy picked off. Mel would lose the club for nothing.
The better option for Mel would simply be to sell the first team squad for as much as possible, then sell to the highest bidder - even with no players the club would still be worth something.

Whilst we have assets and in a transfer window, I can't see us going into admin.

[Curtains]

Just now, Eatonram said:

Anyone who thinks administration is the answer I feel does not understand the full implications of this process. 

The options are running out and you know it. 
 

Anyone who doesn’t get that have not been following events. 

[RoyMac5]

Just now, Curtains said:

The options are running out and you know it. 
 

Anyone who doesn’t get that have not been following events. 

No, you don't get the implications of admin as GoC said.

[mwram1973]

4 minutes ago, Curtains said:

I think he’s getting close to last resorts .

Tell me I’m wrong because I really hope I am. 

I really don't know whats going on atm, the silence is deafening & more importantly, very worrying imo.

[Ambitious]

I thought the people who understood the accounts were of the mind that administration doesn't help anyone? 

I do not believe that a 15 point penalty would make a jot of difference to us in our current state. We could well be the first team ever relegated with negative points. 

[mwram1973]

We have to look at the moral implications not just the financial ones if Mel puts us into admin.

Many staff members will lose their jobs, outside businesses would lose their money owed also.

Then there's the massive points deduction.

Having said that, it worked for Leicester.

[Tamworthram]

2 minutes ago, RoyMac5 said:

No, you don't get the implications of admin as GoC said.

Not saying I agree but perhaps it might have been better for @Curtainsto title the thread “administration is now the ONLY option” rather than the “BEST”.

Obviously I hope not as the implications for the club, it’s employees and creditors would be calamitous.

[RoyMac5]

1 minute ago, Tamworthram said:

Not saying I agree but perhaps it might have been better for @Curtainsto title the thread “administration is now the ONLY option” rather than the “BEST”.

Obviously I hope not as the implications for the club, it’s employees and creditors would be calamitous.

But it's not the only option, and so I'm sure the title is what Curtains meant?

[CornwallRam]

Administration is not actually an option for Mel. The terms of the MSD charge indicate that all of Mel's football related assets are instantly transferred to MSD in the event of any insolvency event beginning...which includes any meeting where it is discussed. 

Effectively, we are talking about Derby County becoming wholey owned by a private investment firm. Who knows what they would do. They'll still want their £17.5m back, but they could restructure us with a view to a later sale, put us into administration themselves to try to lighten the debt or just put us into liquidation. 

[i-Ram]

43 minutes ago, Curtains said:

I think Mel should consider it to be honest 

[Coneheadjohn]

16 minutes ago, Ambitious said:

We could well be the first team ever relegated with negative points

I wonder what odds you can get on that?

[Dean (hick) Saunders]

Way I see it is if MM extracts some money (let’s say £20m) from one of his business and clears most of the debt, he may then be able to sell for more than the £20m and replace it and be a little better off.

If something like this, does not make sense/add up then admin may be attractive to him where he gets £0?

Presumably as part of admin process (one of the hovering buyers) may quickly pick us up (including playing staff) which could negate the fire sale? As long as the new owner would pay off key debts first.

[alexxxxx]

We are doomed - just survival as a going concern will be a bonus. Its the non sale of season tickets that concerns me. 

[jono]

15 minutes ago, alexxxxx said:

We are doomed - just survival as a going concern will be a bonus. Its the non sale of season tickets that concerns me. 

I don’t think we are necessarily doomed but the none sale of ST’s does hint at a need to be honest and not wishing to “trade whilst knowingly insolvent”. In this case directors can be personally liable for a limited co’s debts 

I really hope it hasn’t come to this but regardless of the EFL I don’t think it smells too good at the moment.

[BathRam72]

57 minutes ago, Coneheadjohn said:

I wonder what odds you can get on that?

Hmm, You might be onto something.

Get great odds, crowd fund the Derby faithful and raise a good wedge.

Get the players on side to finish with a negative points tally (shouldn't be too difficult).

Win a load of money then buy Mel out.

☝️

[alexxxxx]

Just now, jono said:

I don’t think we are necessarily doomed but the none sale of ST’s does hint at a need to be honest and not wishing to “trade knowingly whilst insolvent”. In this case directors can be personally liable for a limited co’s debts 

Precisely my thinking. 

Just now, jono said:

I really hope it hasn’t come to this but regardless of the EFL I don’t think it smells too good at the moment.

Thought EFL  are meant to protect the fans as part of their remit but can't see what they've done recently for us. 

[BaaLocks]

The plan is simple - Mel to sell, EFL to cease the witch hunt, Derby to start fresh. Trouble is we're not in control of the decisions so our only choice seems to be to sit back and watch it happen to us. Not much of the 'hope for the best, plan for the worst' seems to be going on.

[Malty]

Just on this, the director’s will legally need to decide if DCFC is a “going concern” in order for them to submit their account and the auditors have a duty to ensure they are happy with this. 

Often in these circumstances the auditors will need a letter from the shareholders (in this case probably Mel) that they are prepared to continue pay the bills. If the auditors are not given these reassurances then they will not be able to submit accounts on a “going concern” basis and that would cause all kinds of difficulties.

So Mel will have to make the decision to continue to finance the club pretty quickly otherwise administration beckons (assuming as I’m led to believe that there is no hope of a takeover on the short term).

(FWIW, I’m a qualified accountant and therefore “in the know” about the above at least)

My bet is that none of this will happen until after the season starts and we will start the season with only four more questionable signings, alongside the current squad.

…. and I’m sure I’ll get comments saying that I’m not in the know on this point (which is getting more and more common from forum members). So to be clear again, I’m not “in the know”, I’m speculating.

Just speculating. Not “in the know”. Hope that’s clear.