To start in League 1 without a points penalty, they have to pay football creditors and HMRC in full, and everyone else 25p in the pound. If they get a points penalty, it's hard to see them going straight back up, so they'd be looking at 2 seasons at least before getting back to the Championship. If anyone's going to pay the football creditors and HMRC, the extra money to pay 25% of the rest won't be a big deal, so I'm not sure that staying in the league with a points penalty is a very likely outcome. The big challenge is who's going to pay tens of millions for a club that doesn't own its own ground and is spending at least a season in League 1. I know we found someone willing to do that, but we were incredibly lucky.
If they can't pay HMRC then I think the debts they owe to them are too big a proportion of the total for any deal to get accepted, since HMRC tend to vote against any deal that doesn't pay them in full, in order to discourage other businesses from thinking they can treat tax money as a loan. What's uncertain is how far below the league they'd have to re-start if it all falls to bits. Other clubs in that situation have re-started 5 levels below League 2, but Derby are a bigger club than the others that have gone under while EFL members and the FA are allowed under the rules to place them higher than that. There are no real precedents as most of the bankruptcies among EFL clubs have happened after the club was already relegated to the National League.
But yes, if they're placed 5 steps below the league, playing clubs the size of Erith & Belvedere, they're going to walk through the divisions for several years until promotion starts getting remotely challenging. Even just funded by a Supporters Trust with no wealthy backer, they could afford a squad that would challenge in the National League just on their gate money.
I don't know what he paid, but i'm sure TS didn't pay tens of millions for us.
If Derby's administrators are telling the BBC that there's still a chance of taking the points penalty this season, they're in cloud cuckoo land. Two weeks from now they'll have only two games left of the season. They're likely to be down at the point, if not after the following game which is less than three weeks from now. They'd need to make a formal offer to creditors and hold a successful vote. And the creditors would know that the new owner was paying huge amounts to deal with the football and HMRC debts, so they might well vote no in the hope of getting a better offer, of at least the 25%. I can't see that there's time.
Still, if this is a credible offer then it's good news for the Club. League One and a points deduction, rather than starting again in a local league 5 steps below League Two.
If Derby's administrators are telling the BBC that there's still a chance of taking the points penalty this season, they're in cloud cuckoo land. Two weeks from now they'll have only two games left of the season. They're likely to be down at the point, if not after the following game which is less than three weeks from now. They'd need to make a formal offer to creditors and hold a successful vote. And the creditors would know that the new owner was paying huge amounts to deal with the football and HMRC debts, so they might well vote no in the hope of getting a better offer, of at least the 25%. I can't see that there's time.
Still, if this is a credible offer then it's good news for the Club. League One and a points deduction, rather than starting again in a local league 5 steps below League Two.
I'm a bit out of the loop. What's the next points penalty for...?
If Derby's administrators are telling the BBC that there's still a chance of taking the points penalty this season, they're in cloud cuckoo land. Two weeks from now they'll have only two games left of the season. They're likely to be down at the point, if not after the following game which is less than three weeks from now. They'd need to make a formal offer to creditors and hold a successful vote. And the creditors would know that the new owner was paying huge amounts to deal with the football and HMRC debts, so they might well vote no in the hope of getting a better offer, of at least the 25%. I can't see that there's time.
Still, if this is a credible offer then it's good news for the Club. League One and a points deduction, rather than starting again in a local league 5 steps below League Two.
I'm a bit out of the loop. What's the next points penalty for...?
15 point deduction if they don't pay at least 25% of what they owe to football creditors.
If Derby's administrators are telling the BBC that there's still a chance of taking the points penalty this season, they're in cloud cuckoo land. Two weeks from now they'll have only two games left of the season. They're likely to be down at the point, if not after the following game which is less than three weeks from now. They'd need to make a formal offer to creditors and hold a successful vote. And the creditors would know that the new owner was paying huge amounts to deal with the football and HMRC debts, so they might well vote no in the hope of getting a better offer, of at least the 25%. I can't see that there's time.
Still, if this is a credible offer then it's good news for the Club. League One and a points deduction, rather than starting again in a local league 5 steps below League Two.
I'm a bit out of the loop. What's the next points penalty for...?
15 point deduction if they don't pay at least 25% of what they owe to football creditors.
Summed up as a wink and a nod that if you don’t want to pay the creditors that’s fine, we will help by deducting the points this season even though you are going down so you don’t start next season on -15 points.
If Derby's administrators are telling the BBC that there's still a chance of taking the points penalty this season, they're in cloud cuckoo land. Two weeks from now they'll have only two games left of the season. They're likely to be down at the point, if not after the following game which is less than three weeks from now. They'd need to make a formal offer to creditors and hold a successful vote. And the creditors would know that the new owner was paying huge amounts to deal with the football and HMRC debts, so they might well vote no in the hope of getting a better offer, of at least the 25%. I can't see that there's time.
Still, if this is a credible offer then it's good news for the Club. League One and a points deduction, rather than starting again in a local league 5 steps below League Two.
I'm a bit out of the loop. What's the next points penalty for...?
15 point deduction if they don't pay at least 25% of what they owe to football creditors.
Summed up as a wink and a nod that if you don’t want to pay the creditors that’s fine, we will help by deducting the points this season even though you are going down so you don’t start next season on -15 points.
The EFL.are usually pretty strict on this sort of thing though & will wait to see if you are relegated first before applying the penalty to this or next season.
Reading won last night so Derby are now 9 points adrift with 6 games remaining. If the takeover does go through, there's no way the EFL are letting them take the 15 point deduction this season.
US businessman Chris Kirchner has been selected as the preferred bidder to buy Derby County, the Championship club's joint administrators have confirmed.
The 34-year-old revived his interest in Derby in recent days, having withdrawn an initial bid three months earlier.
Relegation-threatened Derby have been in administration since 22 September.
Administrators Quantuma said his offer "represents the best deal for creditors and one which will secure the long-term future of the club".
Kirchner's bid for Derby County does not include the stadium, which is owned by the club's former majority shareholder Mel Morris.
Imagine buying a football club, but not the stadium they play in, and let the madcap old owner still hold that over you, you'd have to be absolutely bonkers
Admittedly Derby aren't in a position to be fussy, but a lot of their fans don't seem too keen on this guy.
Seems to be a feeling that he's not actually got that much money, is more interested in just getting his name out there as a football club owner, plus of course there were his old homophobic twitter posts which meant he had to delete his account and start a new one.
This does not mean he is buying them, it just means he is the preferred bidder. He now has access to the full set of accounts, which could still mean him walking away or offering a much lower price. They are not out of the woods yet
This does not mean he is buying them, it just means he is the preferred bidder. He now has access to the full set of accounts, which could still mean him walking away or offering a much lower price. They are not out of the woods yet
He was the preferred bidder before wasn't he, and he walked away then because (i think) of a disagreement with Morris, possibly over the stadium. But i guess now Derby are desperate, they've accepted a lower price.
This will all come down to source & sufficiency of funds, unless there’s something to disqualify him. Most sources I can see have his net worth as $3m - $6m. He claims it’s much more based on profits from crypto investments, maybe $130m.
Given the state of their debts, and I’m sure, a high wage bill, I don’t see how he could sustain the club for long. If he gets people to accept less than 25% of their debts, then they’ll start next season in L1 with a big points deduction and, I think, a transfer embargo.
This will all come down to source & sufficiency of funds, unless there’s something to disqualify him. Most sources I can see have his net worth as $3m - $6m. He claims it’s much more based on profits from crypto investments, maybe $130m.
Given the state of their debts, and I’m sure, a high wage bill, I don’t see how he could sustain the club for long. If he gets people to accept less than 25% of their debts, then they’ll start next season in L1 with a big points deduction and, I think, a transfer embargo.
Surely they don't have a high wage bill given their squad was put together with a mish-mash of free transfers and short term deals? Pretty much the entire squad apart from Bielik and 1-2 others are all out of contract this summer.
Comments
https://www.bbc.co.uk/sport/football/60993986
Still, if this is a credible offer then it's good news for the Club. League One and a points deduction, rather than starting again in a local league 5 steps below League Two.
Mel Morris !!
US businessman Chris Kirchner has been selected as the preferred bidder to buy Derby County, the Championship club's joint administrators have confirmed.
The 34-year-old revived his interest in Derby in recent days, having withdrawn an initial bid three months earlier.
Relegation-threatened Derby have been in administration since 22 September.
Administrators Quantuma said his offer "represents the best deal for creditors and one which will secure the long-term future of the club".
Kirchner's bid for Derby County does not include the stadium, which is owned by the club's former majority shareholder Mel Morris.
https://www.bbc.co.uk/sport/football/60982044
Seems to be a feeling that he's not actually got that much money, is more interested in just getting his name out there as a football club owner, plus of course there were his old homophobic twitter posts which meant he had to delete his account and start a new one.
Be interested to see how this one plays out.
Not sure they'd allow that again....
Good riddance