Takeover Update

[Tamworthram]

31 minutes ago, RoyMac5 said:

"Nixon writes in The Sun on Sunday (15.08.21, pg. 62) that Morris is stalling on handing over proof of his financial backing to the EFL.

He writes that Morris ‘needs to guarantee the Rams will be funded for this campaign’ before the EFL allow Derby County to sign up to four players that manager Wayne Rooney is after this month, after the club were placed under strict transfer restrictions.

Nixon goes on to write how those restrictions ‘will not be eased’ until the EFL are certain that Morris and Derby County have sufficient funds for ‘tax bills and payments to former Derby employees’."

 

WHY won't he produce evidence? He's said he's going to continue to pay the wages. Why not just show them something Mel and then we can get some players in. I can't believe the EFL actually want to see the bank-notes ffs.

Or has he changed his mind about funding us?!

Maybe, as I said in my post, the type and level of evidence he provides is dependent on a takeover. It could be there are two plans (and therefore two different sources of evidence) a) a takeover is imminent or b) the takeover is off or likely to take a lot longer. Plan B could be the nuclear option involving severe cut backs and Mel doesn’t want to present this unless he has to. Of course, like everyone else, I am just speculating.

[kevinhectoring]

1 minute ago, Crewton said:

Is this something that all clubs have to provide in order to sign players, or just the ones operating under EFL restrictions? 

It's a surprise that they're demanding owners inject cash into their clubs regardless, after years of limiting their ability to do so. 

Brilliant! 

Dunno. There is an accounting rule that says the accountants can’t sign off on unqualified accounts unless they are satisfied the company has 12 months working capital. I wondered if Nixon has it slightly wrong. Perhaps it is our accountants who are now cautious. And saying ‘we can’t sign off on our audit without a support letter from Mel, to satisfy us on working capital .’ 

[Curtains]

11 minutes ago, QuitYourJibbaJivin said:

It’s cutting your nose off to spite your face though isn’t it, he doesn’t want to fund the club but unless he wants to put us into admin he has to. He also wants to sell the club but while he doesn’t want to put his hand in his pocket the club is getting ever further into the poo. The further into the poo we go, the less attractive we become to investors. At this stage I’d be surprised if Mel actually receives any money for the club, he just wants somebody to take on the debts but the longer it goes on the more he’s going to have to cover himself anyway. It’s just an endless cycle of poo. Sorry for the use of poo so many times in this post but it’s very appropriate for where we’re at as a club at the minute. 

Like I say catch 22. 

 

[EtoileSportiveDeDerby]

32 minutes ago, angieram said:

So, the EFL won't lift the embargo until Morris gives them assurances about funding, while Morris can't sell the club until he knows what the accounts resubmission will produce in the way of sanctions.

We just seem stuck in an endless loop of restrictions. 

Restriction and incompetence, from both sides.

[Curtains]

The more I think of it the more I realise that only time will sort this out. 
 In the mean time we fight on match by match .

Even if we get relegated the most important thing is that DCFC survives as a Club. 

[Tamworthram]

3 minutes ago, EtoileSportiveDeDerby said:

Restriction and incompetence, from both sides.

A bit controversial but, in this instance (just this one) are the EFL really being that unreasonable? Derby seem to be deep in debt, haven’t submitted annual accounts for a few years and are potentially in breach of P&S rules. It doesn’t seem unreasonable to insist on the accounts being submitted, any penalties accepted and some kind of evidence that the club can continue to pay its way before allowing further signings. (Tin hat on).

[RoyMac5]

9 minutes ago, Curtains said:

Like I say catch 22. 
 

Nope. This has been hanging over the club for far too long. Morris might have a preferred outcome but he should also have the gumption to be prepared for other outcomes.  

[Curtains]

Just now, RoyMac5 said:

Nope. This has been hanging over the club for far too long. Morris might have a preferred outcome but he should also have the gumption to be prepared for other outcomes.  

So what should he do. 
 

How would you feel if all your money was being pumped into DCFC 

[RoyMac5]

3 minutes ago, Tamworthram said:

It doesn’t seem unreasonable to insist on the accounts being submitted, any penalties accepted and some kind of evidence that the club can continue to pay its way before allowing further signings. (Tin hat on).

The first is no more than a potential buyer would expect and the second is what Morris said he'd do - keep paying the wages. So why won't he show the EFL evidence, he's had long enough to sort something.

[RoyMac5]

Just now, Curtains said:

So what should he do. 
 

How would you feel if all your money was being pumped into DCFC 

I'd be looking at the savings account with the PO I started at 5 and show them that! He's said he's going to continue to fund us - show them the evidence so we can sign players. When we sign players we're more likely to win games and then be a better proposition to a buyer!!!

[EtoileSportiveDeDerby]

At the momment, all the issues are very worrying. Nodbody seems to have a clue what is going on,  what makes it worse is all the signs that the club is being run down. If we were a ship it would be a cross between the Mary Celeste and the Titanic, deserted/rudderless heading for a crash. As always, what is left in those situations is the fans, fewer as expected, but at least able to go and deserve better.

[Ghost of Clough]

2 hours ago, kevinhectoring said:

Interesting. Anyone know what it means?? Why would Mel ‘stall’ in this way? And is this an EFL requirement, this proof? Is the EFL saying they think Mel doesn’t have liquidity? 

To get out of embargo now, he likely needs to have the cash in available right now. I presume he's 'stalling' hoping the takeover/investment comes through before needing to find the cash himself

[RoyMac5]

Just now, Ghost of Clough said:

To get out of embargo now, he likely needs to have the cash in available right now. I presume he's 'stalling' hoping the takeover/investment comes through before needing to find the cash himself

Does it have to be 'cash' or evidence of the availability - do the EFL expect all this seasons finance to be sat in a high interest account?

[GenBr]

55 minutes ago, angieram said:

So, the EFL won't lift the embargo until Morris gives them assurances about funding, while Morris can't sell the club until he knows what the accounts resubmission will produce in the way of sanctions.

We just seem stuck in an endless loop of restrictions. 

He won't know any sanctions until he formally submits the accounts. If he thinks that is what is holding up any potential takeover then it is entirely within his power to get it sorted sooner rather than later.

If we're going to fail ffp he gains nothing from delaying submission of the accounts. 

[i-Ram]

4 minutes ago, Tamworthram said:

A bit controversial but, in this instance (just this one) are the EFL really being that unreasonable? Derby seem to be deep in debt, haven’t submitted annual accounts for a few years and are potentially in breach of P&S rules. It doesn’t seem unreasonable to insist on the accounts being submitted, any penalties accepted and some kind of evidence that the club can continue to pay its way before allowing further signings. (Tin hat on).

As @GenBralso said above, it seems perfectly reasonable to me. Forget profit and sustainability and amortisation calculations, they are no longer the story here. The Club clearly owes significant debt, and whilst Morris does seem to be paying the wages it equally seems clear that he isn’t prepared to immediately settle long standing debts - to HMRC, Cocu and his team, etc.  Then there is MSD, and I wonder how much is owing to smaller local creditors who supply the club with services. We don’t know, because he won’t tell us nor apparently offer any guarantees to the EFL for the next 12 months. As @kevinhectoringsays there is also a legal obligation in terms of the audited accounts that are being prepared that the owners must - if liabilities exceed assets - give some tangible assurance to the Auditor that the Club can comply with Companies Act requirements as to continuing to trade and pay debts as they fall due.

[Curtains]

I’ll try again. 
 

I backed Cocu 100 percent and got shouted down 

Im backing Rooney but I’m getting shouted down again 

Edited August 15, 2021 by Curtains

[i-Ram]

15 minutes ago, Curtains said:

So what should he do. 
 

How would you feel if all your money was being pumped into DCFC 

Foolish?

[Curtains]

2 minutes ago, i-Ram said:

Foolish?

Apart from that .

Many people lose money especially in Football. 
 

Still the same point though Mel is not a money tree 

[eccles the ram]

For what its worth my take on this is that Mel was always going to leave submitting the accounts until 18th. It could be because initially he wanted to ensure we were still going to play in the Championship this season.I suspect though there is something in the accounts that both parties aren't willing to back down on!  I expect that if the EFL cannot find anything wrong when they are re-submitted (I am sceptical about this) then they are not going to make a decision until after the transfer window closes, thus hoping we will have to go with the players we have and then possibly relegation. Mel & Pearce unfortunately are losing many DCFC fans by the lack of communication. This week is possibly one of the most pivitol weeks in DCFC's recent history. I hope for the best (and I am a positive chap) but I feel we will not be increasing our squad until January next year (as long as Mel can supply the EFL with evidence he can continue running the club financially until the end of the season).

 

 

 

 

[Sport Billy]

1 hour ago, Abu Derby said:

If he doesn’t fund us we’re finished, simples. 

We'd go into administration and -12 points , any potential new owner would be able to buy US debt free (but would need to buy / rent PP from uncle Mel).... It might be the only way out of this mess