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Bolton Nuts » BWFC » Wandering Minds » Derby County and other clubs - Administration Thread

Derby County and other clubs - Administration Thread

Ten Bobsworth
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Ten Bobsworth

El Hadji Diouf
El Hadji Diouf

Sluffy wrote:


No that's not right.

Have you not read the article?

Contracts have been signed subject to conditions.

The sale is awaiting consent from the secured creditors, the sale of the stadium and EFL approval yet.

The major creditor is the former owner who owns the stadium and who has been difficult all the way through the Administration process.  He doesn't seem to want to sell the stadium to the bloke who is buying the club so the council and local businessmen are trying to buy it off him in order to become part of the deal with Kirchner.

Things are looking good but they are not there just yet.

Beeno readers were led to believe that the Bolton administration was unduly protracted because of the obstructiveness of Ken Anderson and the heel-dragging of Michael James.

In fact the whole thing, from appointment of administrators to the FV takeover, took just three and a half months.

The Derby administration has taken eight months so far. Wigan took nine months iirc.



A really fascinating article on Derby if you like that sort of thing (it also explains towards the end why Rooney was almost certainly made Derby manager, why he can't won't leave and why he's been so vocal in supporting the Kircher bid (which seems somewhat dodgy to say the least!)).

Derby County Deal : Who’s funding it and who will control the Club

There is a lack of clarity over the nature of the rescue of Derby County from administration. This should be a source of great concern for the fans.

The involvement of Chris Kirchner, and the prospect of a deal being signed very soon, offers hope however the future is very opaque. The only way to save Derby County is by the involvement of somebody who has considerable wealth to lose – is that Kirchner?

Based on figures in the Administrator’s report, Mel Morris will need to write off around £124m owed by the companies in administration. The stadium which was bought by one of Morris’ companies for £81m, 4 years ago, may only fetch £20m resulting in a further £61m write off for Morris. £36m is required to pay debts owed to HMRC. Paying the minimum of a few million pounds to unsecured creditors is small change, but necessary, to avoid a further 15 point deduction next season.

According to the latest trading figures issued by the Administrator then an annual £15m loss will need to be funded by the new owner. The English Football League’s Profit and Sustainability rules only allow an average loss of £13m pa before points are deducted.

The spectre in the shadows, that is little mentioned, is MSD UK Holdings Ltd. A company formed on 29 June 2020 with shareholders in the US and Cayman Islands. £20m was borrowed in October 2020 secured on the Pride Park Stadium, car park, and the Moor Farm training ground; a further £3.5m was borrowed by the Administrators in November 2021 to keep the club afloat secured on the same properties.

In November 2021, Mel Morris’ company (Gellaw Newco 202 Ltd) that owns Pride Park stadium, borrowed an undisclosed sum from MSD UK Holdings secured against the Stadium. The debenture (security document) also refers to the Administrators.

Unless the Kirchner deal pays off these loans fully, then MSD UK Holdings will be a stakeholder in the future of Derby County and will have to consent to any takeover arrangement; a stakeholder whose corporate position on the long term future of Derby County Football Club is not public.


In June 2018 Morris restructured the group to remove a number of legacy dormant companies and to create 2 new companies, Gellaw Newco 202 Ltd and Gellaw Newco 204 Ltd. These were formed simply to own the Stadium.

Derby County and other clubs - Administration Thread - Page 3 Structurev2
Structure established in June 2018

The Stadium was sold for £81m resulting in a £40m profit boost to Derby County Football Club Ltd ‘s accounts.

This financial manoeuvre was deemed necessary as the annual losses being generated would have breached the EFL’s Profit & Sustainability threshold of an average of £13m per year. Failure to contain losses results in a points deduction.

In addition to this scheme, the Club changed the policy with respect to the writing-down (amortisation) of player registration rights and transfer fee levies. The consequence as described the in the EFL’s “Agreed Decision” was :

"As a direct result of such breach, “the Club significantly reduced its costs in the years in question compared to other Championship clubs, which had the effect that, because of the FFP restrictions, they were potentially able to increase their spend on player purchases in those years compared to what would have occurred had they adopted the straight-line treatment which other clubs adopt”.

As a direct result of such breach, “the Club significantly reduced its costs in the years in question compared to other Championship clubs, which had the effect that, because of the FFP restrictions, they were potentially able to increase their spend on player purchases in those years compared to what would have occurred had they adopted the straight-line treatment which other clubs adopt”.

FFP – Financial Fair Play Regulations

It was this breach in particular that resulted in the 9 point deduction – this was in addition to the 12 point deduction for entering administration.


Mel Morris was appointed a Director on 19th August 2015; by June 2016 the Club owed him £73m. Each successive year until 2018 ( last published accounts) he provided further funding of £20-£25m pa. The Administrators report showed that the total amount, due to Morris, had increased to £124m owed by Gellaw Newco 203 Ltd, and £74m from Gellaw Newco 204 Ltd making Mel Morris a £200m unsecured creditor.

This does not take into account the monies owed to the range of other creditors of the Group. Depending on the nature of the final deal then this will be offset by the amount paid for by the new owner for the ground. Figures have been mentioned of around £20m which is £60m less than the original sale price in 2018.

Even though Derby County has significant gates for each home match, this, together with the other trading arms of the Club are insufficient to cover the cost base – how Kirchner would turn this around is a critical question.

Who is MSD UK Holdings Ltd (MSD)

MSD has made £23.5m of loans to Derby County which is secured on the Pride Park Stadium, car park, and training ground. A separate loan for an undisclosed amount is secured on the Stadium. This makes MSD a secured creditor ahead of preferential creditors ( e.g. HMRC, Administrator’s fees) and therefore a substantial stakeholder in the future of the Club.

MSD was formed in June 2020. Its shareholders are 3 other MSD related companies based in the US and Cayman Islands. The MSD Corporation was established over 20 years ago to invest the wealth of Michael Dell, the billionaire owner and CEO of Dell Technologies.

MSD received $208m in loans from its “Offshore funds”, in the 6 months to 31 December 2020, which it has subsequently leant to football clubs in the UK at an interest rate of 7.9% – 9.5%. MSD has no banking licence.

Bob Lyddon an International Banking Consultant has asked the question as to why MSD would risk over £20m on Derby County’s assets and continues to lend when the group is in administration and haemorrhaging money. He comments :

“Our understanding, gained from verbal discussions with people who have in turn had discussions with the administrator, is that MSD enjoys a further block of collateral backing the entire loan, and interest, and that it includes a property in Sandbanks in Dorset and two properties in Chelsea, which belong to the club’s former owner. If that is true, it betokens that MSD sees this collateral as its primary security for the loan it has made, and that the charge it has on Derby’s assets is held for the benefit of its former owner, on what might be known as a fiduciary basis: MSD are acting for someone else. What is the true version?…. MSD demonstrates characteristics of a shell company, with connections to two known tax havens.”

In the event that the Club couldn’t make the interest payments, MSD would be able to recover the loans by selling the Club’s assets.

The 1st 6 months of Administration

The whole group made a trading loss of £6.5m in the 6 months to 31 March 2022 ( this is before paying the Administrators/ creditors etc). This reported loss was reduced by a loan from MSD of £3.75m ( shown elsewhere in the reports as £3.5m). The wages were ~£9m which is around 60% less than the 2018 bill.

The consequence of this is that a further £2.8m of creditors will probably not be paid.

The Future

Any deal moving forwards will need to address:

Secured creditor – MSD ~ £23.5m + interest. MSD may decide not to call in the debt.
Paying off the preferential creditors , principally HMRC, totalling £36m
Paying at least 25p in the £ ( necessary to avoid a 15 point deduction) of the unsecured creditors. At present this is around £1m but could rise to £2-2.5m.
“Ownership” of the Stadium to meet EFL rules. If it’s sold, numbers have been mooted around £20m which is a significant reduction from the £81m paid by Mel Morris. This could be bought by a 3rd Party/MSD?
The structural recurring trading loss that the Club generates. This must be sustainable at less than an average loss of £13m pa to avoid further points deductions.

Mel Morris supported Derby County with £200m of his personal fortune; Chris Kirchner’s personal wealth is not well documented. Sportsmail reported regarding Kirchner’s attempt to buy Preston North End:

Sportsmail has been told he never proved the source of his funding but did provide a bank statement showing a balance of over £60million. It is claimed Kirchner said he made the money from bitcoin investments.

It is also understood that Preston had to write the buyer’s business plan, needed to satisfy the EFL he could finance the club for the next 18 months. As one source said: ‘Preston never really knew if he had the money or where it came from.

‘It should not be from his online logistics company, because he has raised external finance to support that.

‘There was no ability to show he had a long-term, sustainable plan. Preston soon realised he was very unlikely to buy the club.’

Sportsmail 9 April 2022

Any deal must rely on significant 3rd Party funding. Given the current level of security then a potential candidate is MSD. They could buy the Stadium, and clear the preferential creditors and enough of the unsecured creditors to avoid a points deduction. Undoubtedly the loan would mean that they effectively “control” the club.

Understandably Derby County fans will want any deal that saves the Club. At this late stage it is unlikely to involve a wealthy philanthropist who will fund the losses without return. This inevitably means that Derby County will rely on a funder who’s motivation is strictly “commercial”.

In this environment there is no obligation on those funding the Club to explain their financial objectives, expectations, future plans, where the true influence lies, or how they will make the Club sustainable. However, the fans deserve to know where the money is coming from and who is actually controlling their historic Club.

Post Script

Kirchner’s recent foray into the purchase of Preston North End included Paul Stretford – Wayne Rooney’s career long agent, and Garry Cook, the ex-CEO of Manchester City. Tweets from Kirchner have stated that Cook would run the Club if he was able to close the deal.

Stretford is a Director of Triple S Sports and Entertainment Group Ltd which is 49% owned by his wife, and 51% by Shepherd Offshore Ltd. Shepherd Offshore had a 16 year association with Newcastle United from the early 90’s with Freddy Shepherd being pivotal in the Club’s successes. A funding option?

Stretford’s involvement sheds some light on why Rooney would stay as manager of Derby. Did he even have a choice?



Derby still in the shite!

The expected sale to Kirchner looks to have fallen through!!!

Sluffy wrote:
wanderlust wrote:Derby sold.


No that's not right.

Have you not read the article?

Contracts have been signed subject to conditions.

Things are looking good but they are not there just yet.

To update things, Kirchner provided evidence that he had the money and the EFL even passed him as a fit and proper person, so all that was left was for Kirchner to transfer the money to the Administrators...

...but it never arrived!

Another deadline was set...

...and again the money did not turn up!

The word was that the Bank Holidays, both here and in the US (Kirchner is American) was the initial delay and the government checking that the money was legit being the excuse for the second delay - so a third deadline was set for 5.00pm today and... still never arrived!!!

Why didn't it?

Well Kirchner isn't speaking to anyone but maybe this is why he isn't?

The Admin are now looking around for any others interested in buying the club and the White Knight could be none other than Mike Ashley!

But wait...

Ashley has plenty of money since selling Newcastle to the Saudi's and wants a good deal - and he knows how to drive a hard bargain!

So anyway how are Derby fixed right now...?

Derby County: Chris Kirchner fails to meet takeover deadline for League One club

Businessman Chris Kirchner has failed to meet a deadline to prove he has the funds to complete a takeover of Derby County, administrators have confirmed.

The Rams have been in administration since September 2021 and Kirchner was named as preferred bidder on 6 April.

Friday's 17:00 BST deadline has now passed and administrators Quantuma are talking to "other interested parties".

The English Football League has called for clarification of "how they plan to take the club out of administration".

An EFL statement continued: "As previously communicated, the league is incredibly frustrated at the time it is taking to conclude this sale.

"With the league just two weeks away from announcing its 2022-23 fixture list, it urgently requires a clear understanding of how the club will be funded moving forwards, be that through the administrators or under new ownership."

Manager Wayne Rooney - England and Manchester United's all-time leading goalscorer, who retired as a player to take charge of the team last year - could leave after insisting he would only stay if Kirchner's deal went through.

Derby have just five first-team players left on their books for next season because of restrictions put on them as a result of the financial turmoil.

Despite the transfer window opening on Friday, the club is unable to sign players, nor able to offer fresh deals to those whose contracts are about to expire.

The five - Krystian Bielik, Max Bird, Jason Knight, Louie Sibley and Jack Stretton - does not include a goalkeeper or any defenders.

Derby's pre-season is due to commence in less than two weeks, with the season just seven weeks away, and there are reports that Rooney's assistant Liam Rosenior is a leading candidate to become manager of Championship club Blackpool.

The concern now among some Derby fans is not about how to get out of League One and back to the Championship, but whether or not the club is capable of surviving long enough to even field a side in 2022-23.

Football finance expert Kieran Maguire said liquidation is now a concern for the club.

"There has to be a very swift solution," he told BBC East Midlands Today.

"Administrators are now free to talk to other parties, they then have to agree a price, they also have to sort out what is going to happen in terms of where the club is going to play as quick as possible.

"Any new prospective bidder has to talk to the EFL in terms of obtaining and being successful in the owners' and directors' test, then put in a bid and pass the money across to allow the club to continue to trade.

"Failure to do that, and if the administrators have no further resources and nobody is prepared to pay the June wages, then they have to consider if they are in breach of their duties and the alternative would be liquidation."

Not looking very good is it?

If push came to shove would the Administrators take a hit on their fees to save the club and sell it to someone like Mike Ashley, or not and liquidate Derby instead to get their full fees or will the hated Mel Morris do an Eddie Davies and take a further financial hit himself just to get things over the line?

Who knows - we survived - just - but a massive part of that was because of  Eddie's continuing largesse to the club.

Thankfully for us he did so but is there anyone likely to do the same for Derby...?



Andy Appleby is the previous Chairman under the then ownership of his company, General Sports and Entertainment, before they sold the club to Mel Morris.

Andy Appleby
Owner and CEO



As expected...

Derby County: Chris Kirchner withdraws bid to buy League One side Derby County

BBC Sport understands Kirchner took the decision because of the difficulty he has had transferring funds to the UK.

Derby's administrators are actively talking to other parties in an effort to find an alternative buyer.

More to follow.


Nat Lofthouse
Nat Lofthouse

Would love to see Derby survive.
Would hate Derby to get gazillions and buy their way up the leagues.
Fine margins.


Nat Lofthouse
Nat Lofthouse

The league do seem to be bending over backwards for Derby, don't remember the likes of Bury getting this much time to sort themselves out.



Derby County: Administrators look for short-term loan to pay wages and issue season tickets

Administrators running Derby County are seeking a short-term loan to pay the wages of staff for June.

The money would also be used to help put season tickets on sale for 2022-23 and sign players, although they are still subject to a transfer embargo.

Derby have only five players contracted for next season, having been under the embargo since September 2021.

In a statement to supporters, administrators Quantuma said the club's future "must be secured very soon".

'Seems like a mess' - Analysis
BBC Radio Derby commentator Ed Dawes

The administrators' statement has been welcomed by supporters groups, as was the EFL one 24 hours prior. But the landscape of getting Derby County ready for their first season in the third tier since 1985 is far from smooth.

They have five contracted players with the rest expected to walk out of the door next week. The EFL needs to clarify how Derby can sign players while under a transfer embargo? Will rules be changed to afford them to do this now? Some cynics would say yes because relegation has happened and other parties are satisfied.

There is no doubt Quantuma are working behind the scenes to end this process, but the speed at which everything is happening seems to be incurring more debt for the club and whoever the new owner proves to be.

A source close to the Andy Appleby group has told me that six days after submitting a "highly competitive bid", there has been no progress and just an acknowledgement of it being received.

Why is it so difficult for the EFL to speak to the parties involved who want to buy the club? Although non-disclosure agreements have been signed, the EFL will have to ratify any deal to finalise a sale of the club, so what difference does it make if it speeds things up?

From the outside, it seems like a mess, with little communication or end in sight. I have submitted questions to the administrators and asked the EFL for clarification. I am still waiting for a response.



For anyone who is following this, it looks as though things are finally going to happen for Derby.

Local fan - and very wealthy - David Clowes (Clowes Developments Ltd) - has already bought the ground off the previous owner, has funded the club to keep going and now would seem in pole position to buy the club.

Rooney has gone with immediate effect - which suggest to me that the new owner has spoken to him and Rooney's decided not to stay or told he's not in the new owners plans - but whichever way it was - he's spoken to someone who knows what is going to happen - and if so (and with the EFL seeking financial certainty from the club to be able to finish the season, which is about to kick off soon!) the sale is imminent.

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