EFL statement ref Derby (updates)

The whole point of the Financial Fair Play rules was to prevent owners benefiting by not running their clubs properly and ending up in the position Derby & Sheff Wed have found themselves in.

The fact that EFL haven't managed that system and the clubs in it properly is an indictment of how poorly organised and managed the EFL is. Not fit for purpose!
 
Anterimus said:
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.



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.



A very real risk that administration could lead to liquidation.
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Why would Derby go into administration? Mel Morris is clearly picking up all the bills, and he knows that the club has some value as a going concern. if he stops paying the bills then it will be administration for Derby and he won't have anything worth selling.

But, even notwithstanding Covid, just about every club in the Football League is in a similar position, just most of them don't attract the same sort of coverage as Derby.
 
Soutra said:
Why would Derby go into administration? Mel Morris is clearly picking up all the bills, and he knows that the club has some value as a going concern. if he stops paying the bills then it will be administration for Derby and he won't have anything worth selling.

But, even notwithstanding Covid, just about every club in the Football League is in a similar position, just most of them don't attract the same sort of coverage as Derby.
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Derby have been late on paying player wages repeatedly this season.
 
DCI_Gene_Hunt said:
The whole point of the Financial Fair Play rules was to prevent owners benefiting by not running their clubs properly and ending up in the position Derby & Sheff Wed have found themselves in.

The fact that EFL haven't managed that system and the clubs in it properly is an indictment of how poorly organised and managed the EFL is. Not fit for purpose!
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yes, but we have to be careful what we wish for, the EFL needs to be better run with more power, not torn up and replaced, and we have to be careful that any governance is not influenced by the rich chairmen that have an agenda that isn't about the good of the game and the fans
 
Soutra said:
But if the players, and the club's suppliers, Derby Council, HMRC etc are all paid then Derby won't go into administration.
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My point is that finances clearly aren't all hunky dory there if that keeps happening.
If it happens again, he may not pay.

There have been 2 failed takeovers already this year by chancers, so he's clearly desperate to sell.
 
TeaCider said:
My point is that finances clearly aren't all hunky dory there if that keeps happening.
If it happens again, he may not pay.

There have been 2 failed takeovers already this year by chancers, so he's clearly desperate to sell.
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Surely if he keeps putting money in to pay wages, above and beyond what is permitted, then he will leave the club with a future FFP failure debt. He could make the club unviable for the next 3 years. Meaning any new owners would want absolute rock bottom price knowing they would not be able to invest for 3 years until Mel Morris's handout money drops of the FFP window? That would be a double whammy for Morris, in that it would cost him more money from his pocket today, and reduce the value of the club at point of sale, meaning he would recoup less......got himself in a bit of a pickle hasn't he :ROFLMAO: :ROFLMAO: :ROFLMAO:
 
The statement by Derby seems to be saying Middlesbrough FC are partly to blame for the mess they are in.
I understand their frustration and anger but it really shouldn't be directed at the Boro.
We followed the rules and Derby didn't.
This gave them an unfair advantage and they finished a place above us and got into the play offs.
I don't honestly think we would have gone up that season but we should have been given the chance.
Steve Gibson was right to complain.
I really feel for Derby and I don't want them to fold at all.
It would be awful for football and a lot of good people will be heartbroken.
But Steve Gibson is our chairman so he does what he can to look after our club.
He shouldn't be blamed for the mess Derby are in.
 
Smoginexile said:
The statement by Derby seems to be saying Middlesbrough FC are partly to blame for the mess they are in.
I understand their frustration and anger but it really shouldn't be directed at the Boro.
We followed the rules and Derby didn't.
This gave them an unfair advantage and they finished a place above us and got into the play offs.
I don't honestly think we would have gone up that season but we should have been given the chance.
Steve Gibson was right to complain.
I really feel for Derby and I don't want them to fold at all.
It would be awful for football and a lot of good people will be heartbroken.
But Steve Gibson is our chairman so he does what he can to look after our club.
He shouldn't be blamed for the mess Derby are in.
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Mel Morris broke the rules, Mel Morris offered ludicrous contracts to players that were at best above average championship players, Mel Morris appointed a string of poor managers, Mel Morris failed to consider a plan B if he failed to get promotion. Yet Gibson is to blame? Mel Morris is looking for a scape goat, so that he doesn't take all the blame for the mess he created.
 
TeaCider said:
My point is that finances clearly aren't all hunky dory there if that keeps happening.
If it happens again, he may not pay.

There have been 2 failed takeovers already this year by chancers, so he's clearly desperate to sell.
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Yes, you are right, but my point is that just about every English League club will be relying on a rich owner to pay the wages (and everything else) during the Covid crisis. Derby are no different except in the respect that their problems are being reported in the media. Steve Gibson will presumably have funded Boro by about £30 million by the year end in June. The FFP rules have no relevance when every club is breaking them. I'd guess they'll have to change the regs or give everyone a year off until there are fans allowed back.
 
BoroMart said:
Mel Morris broke the rules, Mel Morris offered ludicrous contracts to players that were at best above average championship players, Mel Morris appointed a string of poor managers, Mel Morris failed to consider a plan B if he failed to get promotion. Yet Gibson is to blame? Mel Morris is looking for a scape goat, so that he doesn't take all the blame for the mess he created.
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Some of that sounds awfully familiar, players' wages and managerial appointments in particular.
 
Soutra said:
Yes, you are right, but my point is that just about every English League club will be relying on a rich owner to pay the wages (and everything else) during the Covid crisis. Derby are no different except in the respect that their problems are being reported in the media. Steve Gibson will presumably have funded Boro by about £30 million by the year end in June. The FFP rules have no relevance when every club is breaking them. I'd guess they'll have to change the regs or give everyone a year off until there are fans allowed back.
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Last match of the season between two clubs that shredded FFP rules, two clubs that had not been paying staff. Two clubs where their finances are (deliberately?) complex. Two clubs that had sold their own grounds. It says so much about why they both clubs found themselves where they were.
Middlesbrough had worked closely with Derby and frequently looked to them for best practice in many commercial areas but then Boro became aware of processes at Derby and Sheff Wed that they felt made a complete mockery of FFP. Made a mockery of apparatus put in place to prevent clubs gambling everything on one shot at promotion, gambling their assets, their future really.
 
BoroMart said:
agreed, but we took our medicine / cut our cloth then got promoted under Karanka, whereas Morris just gambled again and again.
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I'm talking about pre and post Karanka. We're still in the game and our chairman's wealth us keeping us afloat, and we haven't bent any rules.
 
Corcaigh_the_Cat said:
I'm talking about pre and post Karanka. We're still in the game and our chairman's wealth us keeping us afloat, and we haven't bent any rules.
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So post Karanka, yup, we're cutting our cloth after bad decisions, but again, we're following the rules.
Derby never stopped gambling beyond their means, never stopped pushing the rules. Both clubs have made poor strategic and tactical decisions. But Derby refused to go through the tough years to level out
 
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