Derby County has officially entered administration with a points deduction sending the club bottom of the Championship amid ongoing financial problems at the club.
The news was confirmed today when Derby, managed by former England captain Wayne Rooney, announced Andrew Hosking, Carl Jackson and Andrew Andronikou, managing directors at business advisory firm Quantuma, have been appointed joint administrators of the Sky Bet Championship club, who according to owner Mel Morris are losing between £1.3m and £1.5m per month.
Hosking said: “Covid-19 has had a significant impact on the finances of the club and its long-term ability to continue in its current form. We recognise that with the commencement of the 2021/22 season last month, this news will be of concern to stakeholders and fans, in addition to the city of Derby and the wider football community. We are in the early stages of assessing the options available to the club and would invite any interested parties to come forward. Our immediate objectives are to ensure the club completes all its fixtures in the Championship this season and finding interested parties to safeguard the club and its employees.”
Morris claims he has spent over £200m of his own money in trying to get Derby into the Premier League but admits he has failed and apologised to staff and supporters.
The owner also previously told Sky Sports News he was “devastated” over the situation and cited the financial impact of Covid-19 and a string of failed takeover attempts as the cause of the mess.
There is widespread concern among staff members over job losses with manager Wayne Rooney, speaking after Saturday’s win over Stoke City, saying the situation for all at risk was “heart-breaking”.
The announcement will see Derby face an automatic 12-point deduction, which could rise to 21 points in total, with the club in talks with the EFL over an alleged breaking of financial fair play rules.
The EFL confirmed the 12-point deduction has been applied immediately, adding “constructive discussions” have been held with the administrators “as they seek to find the appropriate solutions required to assist the club as it navigates its way out of insolvency”.
A further nine-point deduction is in the pipeline too, after Derby fell foul of the Championship’s financial fair play rules.
Derby County currently sits 12th in the Championship with 10 points from their opening eight games.