So if Mel Morris doesn`t find another buyer and he stops putting money in to the club, could we see a scenario whereby Derby County goes insolvent therefore getting a further points deduction and then if nothing changes go the same way as Bury FC?
Don`t mind them being relegated but don`t want to see another club go out of existence
There is a real fear amongst some fans here in Derby that it could go the same way as Bury. And I don't just mean by the doom merchants that every club has.
Mel Morris had to pay last month's wage bill of 1.2m which he doesn't want to keep doing. His wife is seriously ill and he isn't in the best of health and he want shot of the burden (but still wants to be Involved as a condition on any take over)
Before the pandemic, it was revealed the wage bill was 160% of income. For the last year, income has obviously fallen massively where as the wage bill hasn't.
If the club enters administration, football related cost still have to be be paid In full before any other payments are looked at. Wages, compensation to Keogh, fines and things like that must be paid in full and first as part of the footballer creditor rule.
Now the club can't sell the ground and lease it back to raise cash (woops) so that leaves the playing squad (of which there isn't many with much value).
Of course trying to sell players whilst in administration and in the current economic climate means they would get much less than a true valuation.
The only other salable asset is the training ground.
Administration along with FFP breach will probably bring a transfer embargo as well as points deduction, so the club starts next season with an even bigger points reduction, unable to sign players and having to sell what playering assets it can.
A very real risk that administration could lead to liquidation.
