Derby County: Administrators look for short-term loan to pay wages and issue season tickets
- Published
Derby's fixtures for the 2022-23 League One season are due to be published on Thursday
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".
But supporters groups have sent a joint letter to Business Secretary Kwasi Kwarteng,, external asking him to intervene and "expedite the sale of the club as soon as possible".
The letter adds: "Quantuma is borrowing further money to keep the club going - increasing the debt and making the club more difficult to sell and increasing frustration amongst fans, prospective purchasers, and now the EFL.
"You are the only person who can hold the administrators to account so can you please proceed to do so?"
Former preferred bidder Chris Kirchner withdrew his offer for the League One club last week, prompting further uncertainty about Derby's future. The Rams have been in administration for nine months.
Ex-chairman Andy Appleby and Mike Ashley, the former owner of Newcastle United, are among those known to be interested in taking over the club.
In their statement, external, joint administrators Carl Jackson and Andrew Hocking said: "Before a sale is finalised, there is an immediate requirement to secure the short-term future of the club, to allow players to be signed, issue season tickets for sale and to secure commercial agreements, as well as our best intentions to bring the uncertainty for staff and supporters to an end as soon as possible."
The statement continued: "We are having extremely positive and productive discussions with interested parties in relation to the short-term requirements and are confident of those discussions leading to a sale thereafter which will secure the club's long-term future.
"We do not, however, believe that imposing 'hard deadlines' are the answer at this stage."
'Not the luxury of time'
The administrators are looking for bidders who will pay football creditors in full, pay at least 25p in the pound for other creditors and have proposals regarding Pride Park stadium, which the club does not own.
Proposals offering less than 25p in the pound for other creditors will also be considered, but this would result in a 15-point penalty being imposed by the English Football League.
Derby were relegated from the Championship last season after having 21 points deducted for going into administration and breaches of financial regulations.
The statement added: "All interested parties know that it is in their interests to be in situ as soon as possible in order for them to put together a competitive playing squad and secure valuable commercial contracts whilst giving staff and fans certainty for the future.
"The club does not have the luxury of time, and so, even without hard deadlines, the club's future must be secured very soon."
The administrators say they are in daily contact with the EFL to update them on progress after the governing body said earlier this month that they wanted to be more closely involved in the search for a buyer.
'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.
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